SWOT

A SWOT analysis can be used to draw out the threats and opportunities facing an enterprise and has the advantage of being quick to implement and readily understood.  Analysis of the strengths, weaknesses, opportunities and threats brings together the results of both internal company analysis and external environmental analysis.  Common and beneficial applications of SWOT are gaining a greater understanding and insight into competitors and market position.  The results of a PEST analysis (discussed above) can be used to inform the environmental analysis.  The process of creating a SWOT analysis is valuable because it involves discussion among the key managers in the business.  It stimulates thinking that is not overly structured or restrictive.