A SWOT analysis examines the internal factors (strengths and weaknesses) and external factors (opportunities and threats) specific to a given company, and is used to assess a company’s potential, to identify new paths forward, or to identify potential problems the company might experience.
SWOT analyses include 4 key components:
Company’s internal strengths
Company’s internal weaknesses
Existing or emerging opportunities within the market
Existing or emerging threats in the market
Each SWOT analysis includes all 4 components.
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Porter’s Five Forces Model identifies and analyzes the competitive forces shaping a particular industry/market, and outlines the market’s strengths and weaknesses.
Five forces analyses include 5 key components:
Industry/market competition
Potential for new market players
Power of market suppliers
Power of customer base
Threats of substitute products
Each five forces analysis includes all 5 components.
