Swot And Pest Analysis

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. Conducting a SWOT analysis is an important exercise enabling the company to look deeply into a marketplace and to take strategic initiatives to increase profitability, growth and market share. The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the company’s overall objectives and goals. SWOT analysis groups key pieces of information into two main categories:
Internal factors – The strengths and weaknesses internal to the organization. To analyze the Strengths and weaknesses following factors may be considered with respect to performance and importance :
External factors – The Opportunities and Threats presented by the external environment to the organization.

To identify the opportunities and threats following models may be used:
PEST Analysis: A PEST analysis is an analysis of the external macro-environment that affects all firms.
PEST is an acronym for the Political,
Economic, Social, and Technological factors of the external macro-environment. Such themselves as threats.
Following factors are considered for PEST analysis:
Competitor Analysis: It is necessary to identify competitor’s performance and actions. In case of tea market the strategic actions of the single competitor may be important and concerned for other companies. Success and market position factors are the important determinants for competitor analysis.
Market Trend Analysis: Market trend will signify whether there are any opportunities I. E. W demands, potential markets etc as well as prevailing threats.
Market Opportunity Analysis: Market opportunity analysis is used to determine market attractiveness and probability of success. Opportunity matrix is used to identify the best marketing opportunities that a company is facing. Opportunities are grouped into the matrix according to their attractiveness and success probability.
Threat matrix is used to identify the immense threats that a company is facing. Threats are grouped into the matrix according to their seriousness and probability of occurrence.

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