(1) What is the current strategy?

(2) Confirm the change of the external environment of the enterprise (Porter's Five Forces or PEST)

(3) according to the enterprise resource combination, confirm the key capabilities and key limitations of the enterprise.

(4) Divide all the identified advantages into two groups according to the general matrix or similar method, and divide them according to two principles: whether they are related to potential opportunities or potential threats in the industry. Similarly, divide all the disadvantages into two groups, one related to opportunities and the other related to threats.

(5) Locate the results on the SWOT analysis chart or use the SWOT analysis table, and fill in the form according to the opportunities and threats.

With the rapid development of economy, society, science and technology, especially the acceleration of globalization and integration of the world economy, the establishment of global information network and the diversification of consumer demand, the environment in which enterprises are located is more open and turbulent. This change has a far-reaching impact on almost all enterprises. Because of this, environmental analysis has become an increasingly important enterprise function.

The trend of environmental development can be divided into two categories: one represents environmental threats, and the other represents environmental opportunities. Environmental threat refers to the challenge brought by the unfavorable development trend in the environment. If decisive strategic actions are not taken, this unfavorable trend will weaken the competitive position of the company.

Environmental opportunity is an attractive field for company behavior, in which the company will have a competitive advantage. The analysis of the environment can also have different angles. For example, a concise method is PEST analysis, and another commonly used method is Porter's five forces analysis.