Enterpreneurship Development

Entrepreneurship Development

Lesson 11 : SWOT Analysis

Usefulness of SWOT Analysis in Innovation / Creative Process

An organization before going in for innovation, has to conduct a SWOT Analysis to know its own strength and the opportunities available for conducting a SWOT Analysis for innovating are –

1. An entrepreneur can know in which field, there is demand, and, can venture into the respective field, keeping their strength in mind.
2. It helps in the development of new technology.
3. An entrepreneur can make an analysis as to develop a completely new product, or to just change the existing product.
4. There can be improvements brought about in the process of production.
5. On the basis of information collected through SWOT analysis, the goals which the firm wants to achieve in future can be decided.
6. Short term mission and long term mission of the organization can be framed.
7. Alternatives can be selected and decided to exploit opportunities and to face threats in the environment.
8. Priorities can be given to different goals and the courses of action to achieve the goals can be timed.
9. Plans can be formalized for effective communication and implementation of plans.
10. Major functions and sub – functions can be determined in achieving the objectives of the firm.
11. Expansion of the range of services and benefits.