A method of working out strategy by sorting internal factors of the company into strengths and weaknesses, and external factors of the environment into opportunities and threats.
Japanese name: SWOT分析
SWOT analysis appears in 1 practice question across 1 topic, including Business Strategy and Accounting Basics.
Answer: C. Demand for automotive power semiconductors is growing as electric vehicles spread
SWOT analysis sorts internal factors of the company into strengths and weaknesses, and external factors of the environment into opportunities and threats. Growth in market demand is an external factor the company cannot control, and it is a tailwind for the business, so it is an opportunity. The company's own technology is an internal factor and therefore a strength, and the entry of a new competitor is an external factor and therefore a threat. The results are used to work out strategies by combining factors, for example by using strengths to seize opportunities.
SWOT analysis sorts internal factors of the company into strengths and weaknesses, and external factors of the environment into opportunities and threats.
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