SWOT abbreviated as S stands for Strength , W stands for Weakness, O stands for Opportunity, T stands for Threat. It is the process which is carried out by the company in order to look for the both internal and external factors internal are strength and weakness and external are opportunity and threat.
Banking industry uses SWOT analysis in order to make sure the effect decision making, SWOT analysis can be measured during the new investment plan, loaning, establishing new branches in different areas of the city, introducing new ideas in shape of new production.
Not only the banking industry but also other industries uses the SWOT analysis for the effective result.
Strength for a Company: every individual human has some expertise even he is useless or lacking some abilities but the God has given him some kind of expertise same thing is followed here with the company that every company has some Strength on whose behalf company has its name and fame, strength can be the raw material, technology, staff, financial position, inputs, supplier and infrastructure as well many can be others.
Weakness for a company: nobody in this world is perfect only Almightily can claim for such tag. The strength of any company can be the weakness of yours, like examples are given in earlier that company’s strength is its supplier but in your case supplier can be your weakness as it does not provide you the qualitative material for the production.
Opportunity and Threats for a company: Opportunity for a company can be converted into threat and the threat can be converted into opportunity as well it only depends on the strategy of a company how they make plans. Threats are the obstacles that you face.
Opportunity for a bank is to open a new branch in a different area of market for its social service and for the earning more and huge profit, but this can be the threat, when you introduce or launch a new branch is a different area obviously you have made survey but you can survive in that area is not certain.
The company like banking must keep in their mind the management must have this that your strengths are your advantages this is what you do better than others, weakness can be improved, and the optimum use of the opportunity is required and you have the ability to convert your thereat into opportunity as they have vice versa affect.