SWOT analysis is well known as a strategic planning approach that can guide a business or an organization evaluate its Strengths, Weaknesses, Opportunities and Threats.An environmental scan that includes both internal and external factors that has influence on a business is vital particularly when holding strategic planning. Since most business organizations have a goal, it is very favorable to them to conduct a SWOT analysis that would give them a detailed and comprehensive condition of the business. The SWOT analysis has four factors but this article would mainly focus on SWOT analysis strength since its a very vital component of the analysis.
The SWOT analysis strength is the primary internal factor that must be given attention when scanning the business environment. SWOT analysis strength defines the characteristics of the business that gives a competitive edge over its competitors. Each business has its own strength that it can enhance to become more productive and gain more profits. Examples of SWOT analysis strength could be customer loyalty, patents, a strong brand name, good distribution channels, exclusive access to natural resources, cost advantage through proprietary know how, new product or service, good location and quality process/procedures. Some of the SWOT analysis strength canbe classified as tangibles or intangibles.
When referring to SWOT analysis intangibles, it could mean having a good brand name that has been established through years by being the market leader. Having a good brand name means that people can easily recall your brand and most likely choose it when considering a product or service. On the other side, a perfect example of tangible SWOT analysis strength would be a good location. A business location is a priority especially for businesses like restaurants, hotels, shops, etc. Foot traffic and exposure to many passersby is important for a food business since people can drop in anytime to eat. In some instances, a business may be strong because of efficient distribution channels. All of their products are almost visible anywhere which makes it convenient to choose. A business can shift its limited resources to more productive products so they can gain more profits. A complete understanding of SWOT analysis strength is truly important when making decisions in marketing and finance.