Organizations in today's world increasingly seek to implement new strategies that allow them to make better decisions based on the analysis of everything that surrounds them and which provides a service or provides a product to society in order to meet needs. SWOT is a simple model of analysis that companies use to evaluate business potential and marketing decisions. The acronym stands for strengths, opportunities, weaknesses, and threats. This analysis model is important for organizations as it provides detailed information on the internal and external factors that can influence the success or failure of a business decision. SWOT analysis is also an essential component of a business plan,that shows potential investors that the company has objectively evaluated its position within its market.
Strengths
SWOT analysis can play a critical role in business decision making by allowing key personnel to assess the strengths of the organization. Identify what the company does well, both from an internal point of view and a customer's point of view. Identifying the strengths of an organization provides information on the potential advantages a company may have over its competitors, such as technological innovation, customer service or the ability to quickly adapt to changing business needs. Next I will describe each of the analysis points that make up the SWOT.
Weaknesses
Approaching a potential business decision using SWOT analysis can benefit an organization in discovering its pain points. It can help determine if the key personnel for the success of a business decision will depend on functions in which the organization cannot function well. Decision-makers may decide to modify the business decision to capitalize on organizations' strengths or take steps, such as investments in training, hiring, and technology, to remedy their shortcomings.
Opportunities
Some factors that influence the success of a potential business decision, such as changes in the social and economic climates of the company's target markets, are largely outside the organization's control. The evolution of legislation and changes in the competitive environment can also affect the viability of a business decision. Identifying positive changes can help uncover opportunities for business growth. SWOT analysis helps prevent key personnel from missing out on these opportunities.
Threats
Just as external changes can provide new opportunities for an organization, they can also pose a threat to the viability of a business decision, as well as to the sustainability of a company's business model. SWOT analysis enables key personnel to identify changes that could potentially harm the business, so that they can make adjustments to address them, avoiding or minimizing the impact of those threats.
The importance of SWOT in organizations are exposed to uncertainties, complex and changing realities, which we must analyze in order to perform in the best way in difficult scenarios; The diagnostic study through the analysis of Strengths, Opportunities, Weaknesses and Threats is important in this regard, since it allows an approximation to the situation of the company, which has a positive or negative influence on the organizational reality, and on the way in that it reflects its competitive position in the market. It is appreciated then that the analysis of the factors that impact the realities of the Companies, which determine the competitive position of the same, is essential to be evaluated through an instrument such as the SWOT, the various levels and variables,that are presented in scenarios such as Internal, Market and Global.
The SWOT matrix, appreciates in its real dimension both the driving forces and the obstacles, this is particularly necessary at all levels, especially in which the basic guidelines for Institutional management are born, as well as in which the business strategy and the operational tactics, tries to maintain, improve, potentiate the positive forces and stop, diminish and weaken the negative forces; This understanding will allow the consolidation of the Company in the context in which it operates. From the detailed concepts, it is summarized that the quantitative research method comprises the analysis of the data in numerical terms or of quantities, which represent units, portions, measures, to obtain information through elucidation.On the other hand, the qualitative research method refers to the analysis of certain qualities, characteristics, attributes, behaviors that distinguish the facts, people, things, organizations or objects of study, with the purpose of making an approximation to reality, in terms of possible objective, without ceasing to be subjective, due to the intervention of the researcher. It should be noted that the two types of analysis are complementary, not isolated, the research thus carried out will have significant external validity.without for this reason ceasing to be subjective, due to the intervention of the researcher. It should be noted that the two types of analysis are complementary, not isolated, the research thus carried out will have significant external validity.without for this reason ceasing to be subjective, due to the intervention of the researcher. It should be noted that the two types of analysis are complementary, not isolated, the research thus carried out will have significant external validity.
In qualitative research methods, researchers not only try to describe the facts but also to understand them; through an exhaustive and diverse analysis of the data and always showing a creative and dynamic character.
In conclusion, the SWOT matrix (Strengths, Weaknesses, Opportunities and Threats), allows knowing the social, organizational, business realities, that is, based on the application of techniques such as observation, interview, and focus groups, mainly, information is obtained The same that is detailed in said analysis instrument, in many cases in this type of matrix the qualitative method is used, without this meaning that quantitative analyzes are not applied.
