When it comes to arming our business project, must carefully perform the SWOT analysis (or English SWOT). SWOT is an acronym composed of the initial letters of the words strengths, weaknesses, threats and opportunities and according to the order in which they are placed can also call DOFA or SWOT. It is a strategic planning tool very well known in the field of business. The purpose of the SWOT is to determine the feasibility of a business or a project idea and consists of two parts, one that analyzes the external factors that may affect the project but that do not depend on us and therefore, we cannot control them, and another part that analyzes the internal factors, those which are under our control. In the outer part of the analysis necessary to establish what circumstances inherent in the environment that could affect the development of the project, both positively (opportunities) and negatively (threats). In General, must analyze how influence our business: the political situation of the country and its form of Government, import and export policies, international relations, the existing legislation on economic, labor and tax, the level of salaries, the price level, the decentralization of companies, rates of employment and unemployment, growth and distribution of population, cultural values, etc. For the quadrant of opportunities, must be taken into account trends and developments in the market, seasonal, or influences fashion, changes in the global and local economies, technological advances, vulnerability of competition, improvements in the legal regulations, changes in social patterns or style of life being presented, etc.
The threats are situations negative, external to the project, which can threaten this, so it will come to the case, be necessary to design an appropriate strategy in order to minimize its impact. In this sense, we will have that predict how can develop their activity competition (in the future), analyze whether there are changes in the demand of the market, changes in political, economic or legislative, if we have little sustainability of capital or financial resources, etc. From the internal point of view of the project which is being performed the SWOT, strengths and weaknesses arise from comparing it with respect to competition or similar projects to determine if we are in a competitive situation top, equal or we find ourselves at a disadvantage. As strengths we can enumerate: competitive advantages offered by the project, factors of differentiation and innovation, human resources in terms of capabilities, experience, knowledge, qualifications, certifications. Must also consider equipment and infrastructure, prices, quality, geographical location, etc.
Weaknesses relate, on the other hand, all those factors with which the analyzed project already has and that may constitute obstacles to achieve success. We could cite as weaknesses: the lack of knowledge or information on certain areas of the business, lack of motivation or of commitment to the project, little competitive force, distraction, a limited budget. Once identified by the SWOT analysis is an appropriate strategy must be developed to modify or eliminate these weaknesses, which are circumstances that depend entirely on us and are not under our control. The completion of an exhaustive analysis SWOT depends on that we avoid costly mistakes in the future through the planning of a strategy that will allow use strengths to better seize opportunities, face threats and overcome weaknesses.