SWOT analysis is an analytical tool used in conjunction with a strategic planning process for most business sectors, including Internet business. It involves collecting data, analyzing it for its impact, then prioritizing it and using it to formulate strategic options based on the data.
SWOT is an abbreviation for Strengths; weaknesses; Opportunities and threats. It is classified into internal and external factors. For this, the Strengths and Weaknesses are called Internal Factor, while the Opportunities and Threats are called External Factor.
Before using the SWOT analysis, the collection of market data, trade policies, internal competencies and capabilities is needed. Other analytical tools are sometimes used to collect external data, such as Michael Porter’s 5 Forces of Competencies and PEST analysis. Internal factors data is collected from the register of internal operations or from the collection of new data. Since the data can end up being too much, a prioritization process is used to narrow down the list of data for each of the four SWOT factors.
Below are sample data to illustrate internet business on SWOT factors:-
Strengths
- Extensive knowledge in Internet Business and various strategies.
- Connoisseur of various niches
- writing ability
weaknesses
- Poor implementation of the traffic generation strategy
- It is not capable of developing its own product.
Opportunities
- Online shopping for special offers has increased in territories other than the United States
- Knowledge-based management niche remains strong due to increased online research by students
threats
- Extended outage in hosting support
- Internet security breach
In real life, the data is plenty for all four factors. The above are merely illustrative examples to locate the data in their respective SWOT factor.