Sizing up a firm?s resource strengths and weaknesses and its external opportunities and threats is known as SWOT analysis. A SWOT analysis provides a good overview of whether a firm?s business position is fundamentally healthy or unhealthy. The role of the SWOT analysis is to take the information from the environmental analysis and separate it into interval issues (strengths and weaknesses) and external issues (opportunities and threats). Once this completed, the SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives or if it indicates a problem that must be fixed or minimized to achieve desired results.
Strength is something a firm does well or a characteristic that enhances its competitiveness. Strengths can be any of several forms: a skill or important expertise, valuable physical assets, valuable human assets, valuable organizational assets, valuable intangible assets, competitive capabilities, an attribute that outs the company in a position of market advantage and alliances or cooperative ventures with capable partners. All these forms determine the complement of resources with which it competes. The caliber of its resources and its ability to mobilize them in a manner calculated to result in competitive
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