SWOT is analysis of business by four criteria:
- S-Strengths,
- W-Weaknesses,
- O-Opportunities,
- T-Threats.
The SWOT technique helps to analyze retail business processes too. Strengths and weaknesses are the criteria for the internal environment of the object under study. These criteria can be changed. Opportunities and threats are criteria of the external environment. These criteria can not be controlled. Let’s take a closer look at each criterion.
Strengths are the subject properties that provide a competitive advantages. This criterion is unique sales proposition.
Anything that holds back profits and business growth inside business processes go in Weaknesses.
Research the trends, study experiences of competitors, look at other areas of business, do brainstorm, generate ideas for collect Opportunities. Opportunities is outside properties that could exploit to profit growth.
Company Threats are negative factors that can weaken the competitiveness of the business in the market.
SWOT analysis has the following advantages: versatility, flexibility, scalability, availability. However this analysis does not reflect dependencies and dynamics and is too generalization.
SWOT analysis is usually a preliminary stage in the formation of a business strategy. It aims at realizing the ability to resist threats using the internal forces of the company and unrealized potential. The result is usually tabulated.