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SWOT Analysis

SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats in a business.

Einfolge, helps in identifying the internal and external factors that are favorable and unfavorable to a business.

  • Strengths: characteristics of the business that provide a competitive advantage
  • Weaknesses: characteristics that place the business at a disadvantage relative to competitors
  • Opportunities: factors that the business could exploit to its advantage
  • Threats: factors in the marketplace that could cause trouble for the business

Identification of SWOTs is important because they can inform business objectives, strategies, and tactics. Decision makers should consider whether a business objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected or it should be modified. SWOT analysis groups key pieces of information into two main categories:

1. Internal factors – the strengths and weaknesses internal to the organization.
2. External factors – the opportunities and threats presented by the environment external to the organization.

Using SWOT analysis on a regular basis, perhaps once or twice a year, will give you a broad overview of ecommerce industry trends, show you where you stand in relation to your competitors, and provide insights into mitigating your weaknesses and building on your strengths.

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