The term SWOT is an acronym made up of the first letters of the words Strengths, Weaknesses, Opportunities, and Threats (in English SWOT: Strengths, Weaknesses, Opportunities, Threats).
Among these four variables, both strengths and weaknesses are internal to the organization, so it is possible to act directly on them.
On the other hand, the opportunities and threats are external, which is why it is generally very difficult to be able to modify them.
- Strengths: are the special capabilities that the company has, and for what it has a privileged position compared to the competition. Resources that are controlled, capacities and abilities that are possessed, activities that are developed positively, etc.
- Opportunities: are those factors that are positive, favorable, exploitable, that must be discovered in the environment in which the company operates, and that allow competitive advantages to be obtained.
- Weaknesses: are those factors that cause an unfavorable position against the competition. resources that are lacking, abilities that are not possessed, activities that are not developed positively, etc.
- Threats: are those situations that come from the environment and that can even threaten the permanence of the organization.
SWOT analysis
The SWOT Analysis is a very simple and clear concept, but behind its simplicity lie fundamental concepts of the Administration. I will try to break up the SWOT to expose its fundamental parts.