How SWOT Analysis is Beneficial for Market Research Companies to Analyze the Market
A recurring revenue stream is the first indicator of every successful enterprise. A business venture should make the continuation of this inflow its core principle over the long term. However, considering the uncertain times and the cyclical nature of various sectors, it is prudent to assess the company and its market in tandem to understand the profitability of a planned or an existing venture. In fact, this analysis should form a part of the planning of even the most viable projects. Market analysts continuously stress on the need to assess the sector and the business to understand the long term implications of the macro and micro-economic environment on any company. SWOT Analysis is one of the most effective ways to do so.
What is SWOT Analysis?
SWOT is an acronym of the words, strengths, weaknesses, opportunities and threats. The analysis compares the company vis-à-vis its market to obtain insights into its workings and its viability as a continuing business. A detailed SWOT analysis provides significant insights. In order to understand this technique further, it is important to dissect and further clarify what each aspect of the analysis stands for.
S for Strengths:
This aspect analyses the positives about the business. It highlights the key factors that make the enterprise worth spending time on by investors, researchers, analysts, etc. It includes operational factors such as state of the factory as well as non-operational aspects such as future plans.
W for Weaknesses:
Thisanalyses the negatives in the business that are either inherent or may have crept in over a period of time. These can include obsolete machinery or non-profitable units being in operation. This can also include financial factors such as write-offs or bad debts that will hamper profitable usage of revenue.
O for Opportunities:
Unlike the first two aspects, this is an industry criterion.Itlooks at markets opportunities that the firm can explore and take advantage of in the short or long term
T for Threats:
Like opportunities, threats are an industry criterion. The list of threats looks at the factors in the macro environment that may cause problems for the business. These may include economic factors such as a falling currency, a market crash, volatile commodity prices, etc.
How SWOT Helps:
SWOT is a great facilitator in corporate planning. An in-depth analysis through this analysis helpsmarkets analysts to:
• Help determine the business’ attainable objectives
• Critically analyze the strategies that could potentially work
• Identify and resolve current operational aspects that do not work
• Identify future success factors and ways to leverage the opportunities
• Effectively plan, control and execute daily workings
• Move funds towards more lucrative revenue streams
A SWOT analysis is a must for every business study and especially for market researchers.
About the Author:
RS MarketInsights strives to bridge the gap between research providers and seekers without the difficulty of dealing with extraneous and redundant data. They aim to offer you the precise perspective on information you seek across a wide array of industry verticals and covering multiple aspects. To learn more, visit www.rsmarketinsights.com/about-us.
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