SWOT ANALYSIS IN STOCK MARKET | பங்குச் சந்தையில் SWOT பகுப்பாய்வு

 

SWOT ANALYSIS :

SWOT analysis is a type of company analysis that can be used to understand the fundamentals of a company. SWOT Analysis can help an investor to understand the competitive advantages/disadvantages of a company in order to make a reasonable decision on whether to buy the shares or not. SWOT analysis focuses mainly on a company's internal and external factors which affect the share price of the company. So Basically SWOT analysis is all about analyzing a company's

Strength (Internal Factor)

Weakness (Internal Factor)

Opportunities (External Factor)

Threats (External Factor)

STRENGTH:

The capability of an organization to achieve a strategic advantage over its competitors is its strength. The potential strength areas of a company can be:

1. Its Strong Financial conditions.
2. Huge Financial Resources,
3. Its Reputation.
4. Increasing Growth
5. Good Quarterly and Yearly Results.
6. Healthy Management, etc.

Example,

Reliance Industries, Apple Inc, - For their Brand and their Reputation.

SONY - Famous for their Sound System.

Microsoft - For OS.

Intel - For Software and its Microchips., etc...

WEAKNESS:

Organizations with weaknesses are at a strategic disadvantage due to existing limitations or constraints.

The Potential weak areas of a company can be:

1.  Its Weak Balance sheet
2. Weak Fundamentals
3. Bad Reputation
4. More Debts
5. Poor Quarterly and Yearly Results
6. Higher overall unit costs relative to competitors
7. Underutilization of resources.
8. Misleading / Misunderstanding between Promoters, etc...

Example,

Yes Bank - Company with More Debts

UTI Scam - Misleading of Promoters, etc..

OPPORTUNITIES:

In an organization's environment, an opportunity is a favorable condition that allows the organization to enrich its position.

The Potential opportunities for a company can be:

1. Expanding the business to new geographical areas.
2. Launching New Products to customers
3. Using Internet and  e-commerce technologies
4.  Pursue sales growth opportunities
5. Integrating forward or backward openings to take market share away from rivals.

Example,

Indigo & SpiceJet takes over Jet airways - acquisition of rival companies with attractive technological expertise.

THREAT: 

Organizations suffer from threats when their environment poses unfavorable conditions that threaten their position. The Potential threats for a company can be:

1. Entry of potential new competitors.
2. Loss of sales
3. Slow down in the growth.
4. Uneven Market condition
5. Global Economic Crisis
6. Adverse shifts in foreign exchange rates and trade policies of foreign governments.

Example,

Launch of Reliance Jio - Potential Competitior for Airtel, Vodafone, BSNL, etc..

Russia- Ukraine War - Global Economic Crisis.

Netflix and Amazon prime - New Competition for Cable TV Operators and theraters.

Let us see an example of a SWOT analysis of the company, TATA Power Company Ltd.

So these are the important factors to be considered for doing a SWOT analysis, These will help us to understand a company deeper in addition to the general fundamental analysis done with the ratios. See you again in another post.

DISCLAIMER:-

The content of this site is only for educational purpose. I am not SEBI Registered. The motive of this site is to share my knowledge on share market to new budding investors and others who are learning about stock market

My Kind request to my site viewers, Before taking any decision please do self analysis, consult or discuss with Your financial Advisor .

மறுப்பு:-

இந்த தளத்தின் உள்ளடக்கம் கல்வி நோக்கத்திற்காக மட்டுமே. நான் செபியில் பதிவு செய்யப்படவில்லை. இந்த தளத்தின் நோக்கம், பங்குச் சந்தையைப் பற்றிய எனது அறிவை புதிய வளரும் முதலீட்டாளர்கள் மற்றும் பங்குச் சந்தையைப் பற்றி அறிந்துகொள்ளும் மற்றவர்களுக்குப் பகிர்வதாகும்

எனது தள பார்வையாளர்களுக்கு எனது அன்பான வேண்டுகோள், எந்தவொரு முடிவையும் எடுப்பதற்கு முன், சுய பகுப்பாய்வு செய்யுங்கள், ஆலோசனை செய்யுங்கள் அல்லது உங்கள் நிதி ஆலோசகருடன் விவாதிக்கவும்.