The SWOT Analysis

Strengths, weaknesses, opportunities, and threats are part of our life in everything we do.

 

When faced with a new situation or examining a current part of our life, the table below can be used to help us organize our thoughts.

 

 

a table with light blue lines with the words Strengths, Weaknesses on top left to right and on the bottom row Opportunities, Threats left to right

 

 

For instance, maybe you need to buy a car. You could use the table above to help organize your thoughts.

 

If making payments, is your ability to make a payment on time a strength or weakness. If this is a strength, you probably have a good credit score and if it is a weakness, your credit score probably needs help.

 

If you understand how to negotiate the price and terms of the deal, that is a strength. If you have never purchased a car or just agree with whatever the car salesperson says, price negotiation is a weakness.

 

If you know you have a good credit score, that will be a strength, and if you know that you have a poor credit score that will be a weakness.

 

If you qualify for a special discounted interest rate because of good credit, that could be an strength. If you have poor credit, high interest rates will add to the amount of money you have to pay each month and that could be a weakness.

 

A warranty could be a strength as you will have peace of mind when in comes to costly car repairs. The lack of a warranty could be a weakness. Would you have enough money to repair your car if it does not have a warranty?

 

The different choices in what type of a car you can buy can be your opportunities.

 

Driving yourself to a vacation destination can create leisure opportunities and the ability to drive yourself to work can create opportunities to take on a different job.

 

Threats with a car include any damage or harm you bring to the property of another person or to the person themselves. You mitigate this threat by driving responsibly and having the right type of auto insurance.

 

Other threats to a car could be theft of the car or damage to your car. You protect yourself by having the right type of auto insurance.

 

Insurance agents can help you understand what type of auto insurance you need. When buying a car, understand how much the insurance will cost before you buy the car. Insurance companies can give you a quote.

 

Another threat is the amount of money you will have to spend each month on things like the car payment, insurance, fuel or electric charging, and any maintenance repairs, which are typically not covered by car warranties-things like oil changes, new tires, wiper blades, etc.

 

You can use the table to organize your thoughts on any situation you face in life. The more you organize your thinking, the better decisions you will make.

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