April 30, 2019
About SWOT Analysis
What is SWOT Analysis
SWOT analysis is a framework used to evaluate a company’s competitive position by identifying its strengths, weaknesses, opportunities and threats. Specifically, SWOT analysis is a foundational assessment model that measures what an organization can and cannot do, and its potential opportunities and threats.
Understanding SWOT Analysis
SWOT analysis is a basic, analytical framework that assesses what an entity — usually a business, though it can be a place, industry or product — can and cannot do, for factors both internal and external. Using environmental data to evaluate the position of a company, a SWOT analysis determines what assists the firm in accomplishing its objectives, and what obstacles it must overcome or minimize to achieve desired results: where the organization is today, and where it may go.
For example, back in 2015, a Value Line SWOT analysis of The Coca-Cola Company noted strengths like its well-known brand name, vast distribution network and opportunities like emerging markets, but it also noted weaknesses and threats such as foreign currency fluctuations, a growing taste for “healthy” beverages and the subsequent competition from providers of such beverages. Coca-Cola took steps to address these concerns, ramping up its marketing, advertising and promotional activities, and expanding into other beverage categories. As a result, within a year, its dividend-per-share rose from 33 to 35 cents, and its stock, which was hovering around $39 per share, climbed to $46. It’s fallen since, but remains up about 13 percent over the past three-year period.