Exploring SWOT Analysis: Definition, Elements, Models, Strategies, Importance, and Steps

What is SWOT Quadruple Analysis? 

SWOT analysis or SWOT matrix quadruple, or quadruple analysis tool of strategic analysis tools, which is an analytical method that helps to identify points of weakness and strength, and realize the quality of threats and the nature of the opportunities available and affecting the facilities, and SWOT analysis is one of the important systems for preparing and designing strategies for the business sector; 1960 and 1970.

 

SWOT Analysis Elements 

The four English letters (SWOT) represent four words in the English language, and they are the basic and main elements on which this analysis depends in evaluating the work of enterprises, and helping them make decisions based on strategic planning, and the following is information about each word: 

1. Strengths: Elements or strengths are the elements that contribute to the distinction of the project or company from other companies, and strengths constitute a set of capabilities available within the facility, and contribute to achieving its demands and getting rid of the threats surrounding it, such as the presence of competent people in the work environment such as trainees and managers, obtaining appropriate financial resources, and using technology. 
2. Weakness: Elements or weaknesses are the elements that show signs of weakness in the company or project, and weaknesses represent that deficit affecting the facility, and prevents it from reaching its goals, and examples of which are the emergence of problems in the distribution and export of services and products. 
3. Opportunities: Elements of opportunities are the elements that represent external and dependent factors of the facility or project, and reflect positive effects, for example, they may help to increase the rate of profit or increase the sale of products, and opportunities form all trends or conditions that help achieve the desired goal, such as the emergence of cooperation between enterprises. 
4. Threats: Threat elements are the elements that constitute effects from outside the facility or project, and lead to it being affected by a clear threat, and result in disruption in the work environment of the facility or project, and threats represent all circumstances with external sources and negatively affect the efficiency and quality of work within the facility, and examples of threats are people's lack of interest in buying products for the facility. 

SWOT Analysis Model and Matrix 

The analysis of the strategic situation within the work environment is based on a model called the dual or binary model for performance and environment, while SWOT analysis, known as the SWOT matrix, or the four-wheel analysis tool, is a quadruple matrix consisting of elements of weakness, strength, threats, and opportunities, and the SWOT analysis model appears according to the following figure:

SWOT Analysis Strategies 

After completing the identification and study of all the elements of SWOT analysis, knowing the nature of the available threats and opportunities, and evaluating weaknesses and strengths, a set of results appear that depend on various strategies, and management must choose the most appropriate strategy from them, as they correspond to the positions of the facility towards its goals and competitors, and the following is information about the main strategies for SWOT analysis:

• Offensive strategy: It is the strategy based on the facility's possession of elements of strength and many opportunities, so the facility is keen to apply an offensive strategy to take advantage of all opportunities and enhance its strength. 
• Treatment strategy: It is the strategy that indicates that the facility has many opportunities, but it is affected by several weaknesses that make it unable to take advantage of these opportunities, so the treatment strategy contributes to providing appropriate treatment to correct the weakness that the facility suffers from. 
• Defense strategy: It is the strategy that is used when an interaction appears between threats and elements of strength, as the organization is keen to invest its strength to defend itself against the threats it faces. 
• Contractionary strategy: It is the strategy that is used when the facility faces elements of weakness issued from within and a set of threats coming from outside, and the contractionary strategy is keen to provide treatment for weakness and reduce as much as possible the threats. 

The Importance of SWOT Analysis 

SWOT analysis is one of the most important tools for strategic analysis, and it is considered the first stage of preparing and designing plans within establishments, and it also helps people to make decisions affecting their lives, and it is also one of the easy and important ways, as it should not be ignored or not used in the work environment, and the importance of SWOT analysis is summarized according to the following points:

• SWOT analysis helps to know all the elements of power that can be used to deal with threats and obstacles, provides the appropriate means to take advantage of available opportunities, and reduces control resulting from weaknesses affecting the efficiency of the organization's work. 
• SWOT analysis contributes to providing appropriate treatments for strategic and complex situations by reducing the volume of information to contribute to the development of the decision-making process. 
• SWOT analysis provides organizations with the ability to choose the best systems, and review all data and information. 
• SWOT analysis supports organizations in reaching the best types of planning that help achieve goals. 
• SWOT analysis is keen to overcome barriers and obstacles affecting change processes, and to clarify the nature of the constraints that prevent the continuation of change. 
• SWOT analysis provides information on all its elements including threats, strengths, opportunities, and vulnerabilities in order to apply a useful analysis of the facility. 
• SWOT analysis provides access to new and up-to-date problem solutions, effective decision-making, and enhanced role of brainstorming and communication between people. 
• SWOT analysis provides appropriate recommendations that help prepare feasibility studies for projects. 

SWOT analysis steps 

To use the SWOT analysis tool, you must follow a number of steps to perform the analysis, and the following is an explanation of these steps: 

Setting SWOT goals 

Setting SWOT business goals or a quadruple SWAT matrix is the first step to making the most of SWOT analysis, for example, it can be used to help determine whether a new product or service should be introduced or changed.

Identify strengths 

The second step in SWAT analysis is to brainstorm to identify strengths and arrange them within a complete and detailed list, as it is recommended to put as many points as possible to work on, refine, and improve, while making sure that they are identified for the entire work, and refining the list includes removing duplicates, making sure that the list is as specific as possible, and ensuring its accuracy, then each one is evaluated, and the question is answered: Is it really a force that gives the project or business an advantage or value, or is it just a good positive thing?

Identify weaknesses 

To obtain better results and after identifying strengths, you must focus on weaknesses in the work, which is to make a list of weaknesses also by thinking about resources, work capabilities, employees, and the general presentation of the market, which is often formed by listening to different opinions, as it is important to ensure that the analysis is kept as realistic as possible, and once the list is developed, it is scrutinized and refined, to determine a clear list that can be managed and identify the basic weaknesses in an understandable way.

Identify potential opportunities 

Potential external opportunities are identified that can affect the business and lead to its success, and these opportunities differ from internal strengths, and care must be taken not to include the same element as an opportunity and a threat, for example, external opportunities can include: new technology, training programs, partnerships, market situation and policy change.

Identify threats 

List external factors that can pose a threat or cause a problem in the business or project, such as high unemployment, increased competition, and higher interest rates. 

The SWOT analysis tool is of great importance, as it works to identify the strengths and weaknesses of the establishments, and also contributes to determining the type of threats and the nature of the opportunities available in the business sector within deliberate steps using the SWOT matrix, after which the most appropriate strategy is determined so that it corresponds to the positions of the organization towards its goals and competitors, to obtain the best analysis and the best results for designing plans in establishments and making decisions based on this realistic analysis. 

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