Often your instinct doesn’t lie and there are times when you should follow it – even for very complicated decisions…
Often, if we consider all the pros and cons of an action, oddly enough, they are very balanced.
But every decision you have to make and valuation that you must do cannot be exempt from a more rational “scientific” analysis. If you are not familiar with the term SWOT, now you should have an idea of what it means.
SWOT is an acronym, and stands for Strengths, Weaknesses, Opportunities and Threats. Each idea presents each of these aspects, and a SWOT analysis will allow you to rationally emphasise what is positive and minimise what is negative, in order to neutralise it.
Let’s briefly see an example for each group.
S – STRENGHTS
- Marketing specialisation skills
- Exclusive access to certain natural resources
W – WEAKNESSES
- Lack of specialist marketing skills
- Differentiated products and services (e.g. in relation to competitors)
- Location of assets
O – OPPORTUNITIES
- Market with vast development potential
- Mergers, joint ventures, strategic alliances
- New attractive market sectors
T – THREATS
- A new competitor in the domestic market
- Price war
- One of the competitors has a new product or new innovative service
In any case you will have a clearer picture of your winning cards and how to sort of neutralise the opponent’s hand.
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