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Thursday, May 9, 2013

Using the SWOT analysis matrix in business

Most small business owners are aware the SWOT analysis matrix and the benefits provided when used to enhance the strategy and structure within. For example, SWOT analysis is used to define strengths, weaknesses, opportunities, and threats of a business. According to Investopedia, SWOT analysis is “a tool that identifies the Strengths, Weaknesses, Opportunities, and Threats of an organization.”

View slideshow: SWOT analysis and matrix

The variables within a SWOT matrix manage both internal and external analysis. For example, the internal analysis can be performed by using the strengths and opportunities variables whereas the external analysis can be achieved by using weaknesses and threats variables. It may seem complex yet these two matrices are quite simple to manage for short-term and long-term matters. Tracking the strengths and opportunities of a business can be done every so many months as it will allow updates and enhancements to be reviewed.

The second matrix is the external analysis because of what two variables are used, Weakness and Threats. The first variable is used to seek out the weaknesses of business that can effect growth. The second variable determines threats from competitors that can cause difficulty in moving forward, obtaining customers, and building stronger market growth. Both internal and external analysis matrices work together in the end to build a full dialog of business goals for future growth potential.

Using the SWOT analysis matrix in business

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