What is swoc analysis? Explain its relevance to business decision making

In today's market, it is necessary that every business, regardless of its size, embark on a constant review of how well positioned it is in the market. A simple and quick way to do this is through SWOT analysis.

SWOT is an acronym that includes four concepts: Strengths, Weaknesses, Opportunities and Threats, as well as an analysis of the internal and external aspects of the company and whether they are useful or not.

Opportunities and threats are external elements (in terms of the company), things that the company can not modify or control. However, you can take advantage of them. Strengths and weaknesses are internal factors that the company can control and improve. That is why we must conclude that opportunities and strengths are favorable factors for the company, while weaknesses and threats are less favorable.

SWOT Analysis allows us to answer the following questions: How can we exploit each force? How can we seize every opportunity? How can we stop every weakness? And how can we defend ourselves against any threat?

Ms. Paola Paredes, a co-founder of Woodinville's Pro-Enterprise (which provides accounting and administrative assistance to small businesses), tells us that this method helps companies in all situations where problems arise, regardless of whether these problems Are professional or personal. It emphasizes the importance of going through a SWOT analysis before opening a business and, therefore, clearly expanding what we have and what we lack. It is an excellent planning tool.

Paredes says it is important to do the SWOT Analysis during the beginning of the year because this will help to evaluate things and support decision making, helping to establish a path for the business. "Without a doubt, having a vision that is clear, objective, practical and without business emotions, helps."

This is the reason why we can conclude that many results obtained from a SWOT analysis will allow the entrepreneur some degree of process optimization and development of more effective marketing strategies to keep the business current, competitive and successful.