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What Is The Swot Analysis Of Insurance Industry?

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SWOT is an acronym standing for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a strategic planning method used to identify these how a project business venture stands in relation to these four criteria. The four criteria, strengths, weaknesses, opportunities and threats are defined as following:

"Strengths: Characteristics of the business or team that give it an advantage over others in the industry.

Weaknesses: Are characteristics that place the firm at a disadvantage relative to others.

Opportunities: External chances to make greater sales or profits in the environment.

Threats: External elements in the environment that could cause trouble for the business."
(from en.wikipedia.org/wiki/SWOT_analysis )

SWOT analyses are used when a particular company, venture, business or firm wish to either start out in business or expand into a new unknown area of business. With a given objective in mind, SWOT is then used to gauge the strengths and weaknesses of the team, see how they relate to the opportunties and threats in their business environment. The aim of SWOT is to discern whether a venture is likely to succeed or not. If it is not, then either the team objective must be changed, and a new one found, or the venture should look to move elsewhere or close down.

A SWOT analysis is performed on a company or team with an objective, and so a SWOT analysis on an industry has no meaning. However, if a firm or business moves into the insurance industry they might make a SWOT analysis, in which case their opportunities and threats would all relate to their environment, and so competitors (either local or distant) must be analysed, as well as the economics conditions and the position of the business relative to these factors.

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