The SWOT Analysis
As mentioned in the previous post, by segmenting the market, we are able to identify target customers and their needs, as well as highlighting the existing market opportunities.
The next step is to start the Strategic Diagnosis. With the SWOT Analysis, we identify internal strengths (Strengths) and weaknesses (Weaknesses), and external opportunities (Opportunities) and threats (Threats).
Based on the business impact and its future trends, the SWOT Analysis allows you to have at your disposal a grid to identify the various strategic options: clearly identify what your problems are to be solved in the future (weak points) and the risks of each option (solution) to be taken into account, as well as the advantages and opportunities to be leveraged and explored.
Applying the same management tool to the analysis of the competition, we must characterize the products it sells, the positioning it holds, with the aim of, in the end, knowing its competitive advantages in more detail.
Based on the analysis of the competition plus internal aggregated information, the goal for the startup is to be able to find its place, its differentiation, its positioning in the market.
The SWOT analysis is, therefore, a precious instrument for the development of a business strategy, through the conclusions drawn from the external and internal analyses.
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