Identification of business opportunity (using SWOT analysis)


Some opportunities are sometimes identified while the entrepreneur is having his/her self assessment in terms of strength, weakness, opportunities, and threats universally referred to as SWOT.

SWOT analysis is a useful self-appraisal system for your strength and weakness that help establish your business or develop your business by exploiting your abilities, talent and opportunities, it is frequently used to understand, underline and identify the opportunities open to you and the threat you are likely to encounter.

SWOT analysis could also be that initial self appraisal of the ability of the business opportunities to start and survive.


1. Strength (S)

This is the interval factor like the advantages of your organization, what you do better than others, the unique or low-cost resources you can draw upon that others can't. These are mainly the core operational capabilities you have and the reach of your distribution network.

2. Weakness (W)

This is an inherent limitation that characteristically place you or the team at a disadvantage when compare with others. You are aware of your own weakness than any other. It is time to be truthful to yourself by asking yourself some unpleasant questions and awareness about your weaknesses.

3. Opportunity (O)

These are contributive external forces for accomplishing the goals and objectives of the venture. These objectives may be to improve productions and achieve better profits in the market or to start up a new business from emergence to survive.

4. Threat (T)

These are mostly external factors like obstacle you encounter, your competitors activities, the changes in quality standards of your job, products or services, changing technology may threaten some positions. These factors are usually outside the control of the person or persons in the market environment and could impede the business or the entrepreneur from achieving the expected goals and objectives.

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