SWOT Analysis is a highly successful tool used in strategic planning. SWOT simply stands for Strengths, Weaknesses, Opportunities and Threats. Using the SWOT Analysis is simple and can be very beneficial. For instance, if you are planning to open a new retail store you can use this analysis to determine what the pros and cons of opening such a business would be. Your strengths, for instance, may be that you have worked in the retail field for several years and have an inside knowledge of the day-to-day operations. Your weaknesses will show if you actually have the experience needed to set up a successful operation. When you are considering your opportunities, it is important to have done research into the field that you are interested in. Be certain that you determine how the business will be accepted into the community that you are opening in. For example, if you are planning to open a retail clothing store, be certain that the population in your chosen area will support your new business.
Finally, when you are assessing your threats be sure to determine the cost ratio that will be involved. If the workforce in your area is low then it may be a better decision to wait or to pursue another avenue in your business. By using the SWOT Analysis, you can help to ensure that whatever situation you are considering is balanced with regards to the good versus the bad.