6.2. SWOT Analysis as the Basis for Your Strategy

Another crucial aspect of formulating a strategy is ensuring that the strategy is developed on the basis of a systematic strategic analysis, or SWOT analysis, which summarizes the main conclusions of the strategic analysis – internal strengths and weaknesses of the company and external opportunities and threats. A well-designed strategy should actively eliminate or treat internal weaknesses and external threats (risks), but also build on the identified internal strong points and opportunities which the company identified in the strategic analysis. When formulating a strategy, it is also advisable to systematically go through individual SWOT findings and verify that they are all being addressed by the new strategy.