SWOT Analysis Definition
The SWOT Analysis is a strategic planning tool that stands for: strengths, weaknesses, opportunities, and threats. The SWOT analysis is essential to understanding the many different risk and rewards of any investment. Analyst, investors, students and professionals or all types can use a SWOT analysis to categorically break down a project or businesses' strengths, weaknesses, opportunities, and threats.
Internally generated long term advantage in the industry. Strength gives a company a long term advantage over it's rivals. Examples include: great brand name or economies of scale.
A long term / fundamental business concern that is internally generated. A weakness is something that causes issues for the underlying business, which take considerable time and effort to fix and are internally generated or controlled. SWOT examples include: ineffective corporate culture, inefficient tax system, etc.
External conditions that are helpful to a company. SWOT examples include: organic food's popularity, low energy prices etc.
External conditions that are harmful to a companies performance. SWOT examples include an uncertain economy, housing reforms, and a closed economy.
Each report has a full SWOT analysis, which users can edit and improve. Additionally, the industry analysis and investor portfolios are a aggregate of each individual company SWOT analysis. Essentially, WikiWealth uses the SWOT analysis to understand each type of investment. See Wal-Mart Example
How Does the SWOT Analysis Improve Stock Research?
WikiWealth uses the SWOT template to improve the qualitative analysis for each investment research report. When a company's strengths are greater than their weaknesses, then a company is better able to compete with other companies in their industry. When the number of strengths and weaknesses are the same, then they cross each other out. When weakness dominate strengths, then the company has many internally generated problems they need to fix. A large number of weakness is bad for any investment. WikiWealth uses a number of criteria to forecast the qualitative analysis conclusion for a company. If weakness or threats dominate strengths and opportunities, then the target investment will not look favorable to investors.
WikiWealth Improves Your SWOT Analysis Ideas?
Many visitors contribute their thoughts and ideas to the SWOT template. WikiWealth reviews each statement to improve upon what our visitors input. All it takes is a good title and WikiWealth analyst will be able to create an entire paragraph of information that relates that statement to the rest of the analysis. For example, one statement for Starbucks read: Good Coffee, Yum Yum. WikiWealth analyst saw this statement as a reflection of Starbucks' brand value, brewing recipes, coffee bean sources, etc. reasons why Starbucks makes great coffee. WikiWealth will improve any SWOT statement, so try it out. Help improve the SWOT analysis so we can all benefit from a free swot analysis.
Value Investing Importance of the SWOT Analysis?
The quality and quantify of statements has a direct impact on stock research ratings, and thus, company investments. A professional analysis cost a minimum of $150. WikiWealth's SWOT analysis is free and open to improve and edit. This wiki allows easy edits of information and content by anyone. All users edits are monitored and review by WikiWealth professionals.
Acronym, Common Misspellings, and Alternative Names
Common misspellings include swot analisis, analyse, analaysis, and analyisis. The SWOT analysis also goes by the term TOWS (threats, opportunities, weaknesses, strengths) Matrix.