How can a SWOT analysis drive better growth strategy decisions?
A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis helps executives and planners evaluate internal and external strategic factors in a structured format.
Strategic Utility of SWOT:
Strengths and Weaknesses (Internal):
Identifies core competencies, such as skilled workforce, IP, or efficient processes.
Exposes operational bottlenecks, lack of skills, or resource constraints.
Opportunities and Threats (External):
Helps discover new market niches, technological advancements, or regulatory relaxations.
Flags risks like new entrants, economic instability, or disruptive innovations.
Applications in Growth:
Builds alignment between core strengths and market opportunities.
Prioritizes investment in capabilities to neutralize weaknesses or threats.
Lays the groundwork for strategic objectives and key initiatives.
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