SWOT Analysis

SWOT Analysis Definition

Definition of SWOT Analysis

SWOT analysis is a method of preparing the strategy the company or organization that is a single business unit. The scope of a single business can be a domestic or multinational. SWOT itself is an acronym for Strength (S), Weakness (W), Opportunities (O) and Threats (T). Where that systematically can help in identifying external factors (O and T) and factors within the company (S and W). The words are used in preparing a business plan to achieve goals ripe for both short and long term.

To be more clear, here I attach also sense according to one expert SWOT Indonesia, namely Fred Rangkuti. Less is more like this

SWOT analysis is to systematically identify the various factors to formulate corporate strategy. This analysis is based on the relationship or interaction between the internal elements, namely the strengths and weaknesses, against the external elements of the opportunities and threats.

A general guideline that is often given to the formulation are:
1. Utilize the opportunity and strength (O and S). This analysis is expected to produce long-term plan.
2. Overcome or reduce the threats and weaknesses (T and W). This analysis is more likely to produce short-term plans, namely the improvement plan (short-term improvement plan).

The initial phase of the strategy-setting process is to assess the strengths, weaknesses, opportunities, and threats the organization. SWOT analysis enables organizations to formulate and implement major strategies as the advanced stage of implementation and an Organization objectives, SWOT analysis of information collected and analyzed. The results of analysis can lead to a change in mission, goals, policies, or strategies that are running.
The preparation of a good plan, keep in mind the power and funds owned at the time of going to start a business, knowing all the elements of strength possessed, as well as any weaknesses that exist. Data collected on these internal factors is the potential in carrying out the planned business.
On the other side to consider external factors that will confront the opportunities or the opportunities that exist or are considered to arise and threats or barriers which are expected to arise and affect business dilkaukan.
It can be concluded that the SWOT analysis is the development of the relationship or interaction between the internal elements, namely the strength and weakness of the external elements of the opportunities and threats. In this study we want to obtain the results of the SWOT form conclusions based on the 4 factors that previously have been analyzed in advance

* Strength-Opportunity Strategies (S and O or maxi-maxi)
The strategy generated in this combination is harnessing the power of the opportunities that have been identified. For example, if the strength of the company is on the benefits of the technology, then this advantage can be utilized to fill the market segment who require a level of technology and quality that is more advanced, the existence and needs have been identified in the analysis of the opportunity.

* Weakness-Opportunity Strategy (W and O, or Mini-maxi)
Opportunity that can not be utilized because of identified weaknesses of the company. For example, the distribution network to market is not owned by the company. One strategy that can be taken is to work with a company that has the ability to work on that market. Another strategic choice is to overcome the weakness order to utilize the opportunity.

* Strategy Strengths-Threats (S or T or Maxi-min)
In the analysis of threats found a need to overcome them. This strategy tries to find the strength of the company that can lessen or avert the threat. For example, the threat of price wars.

* Strategy Weaknesses-Threats (W and T or Mini-Mini)
In the situation facing the threat of internal weaknesses and at the same time, a strategy that is generally done is to “get out” of the situation that sandwiched it. The decision taken is the “dilute” the resources tied to a threatening situation, and divert it to other businesses brighter. Another tactic is to enter into an agreement with a company that is stronger, in the hope that the threat at a time will be lost.
By knowing the situation to be faced, the subsidiary can take the necessary steps and act with a policy of targeted and steady, in other words the company can apply the right strategy.