Situation analysis is a systematic approach to thoroughly assessing the current status of the business, the industry, and the external environment. It includes analyses of the industry in which your company operates, your competitors, your target markets, the general economy, and a SWOT analysis. SWOT is an acronym that represents strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are related to things within your business whereas opportunities and threats are external to your operation.

Become a member of the SWOT team by learning to analyze your strengths, weaknesses, opportunities and threats. Click the "Learn More" on the right to learn more.

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The Internet can be a vital component of performing situation analysis. You can learn a lot about your industry, competition, and the economy from the Internet. You may find data, research reports, or feasibility studies that you will want to download or purchase. For example, Joe Phillips indicated that he has performed a lot of research on-line. That research was used to make the decision to invest in a Boer goat enterprise. Ongoing research allows him to continually assess the market for Boer goat meat, to learn more about production issues, and keep up with the happenings of the competition and input suppliers.

Your website and electronic communications can also be used to continually assess your situation. The feedback you receive from customers, input suppliers, or others can help you to perform a SWOT analysis. You may also use your computer to monitor the industry and competition on an ongoing basis.