The development direction of enterprises should be analyzed by SWOT method. SWOT is a method of enterprise analysis, that is, according to the established internal conditions of enterprises, we can find out the strengths, weaknesses and core competitiveness of enterprises. Among them, S stands for strength (advantage), W represents weakness (weakness), O represents opportunity (opportunity), T represents threat (threat), S and W are internal factors, and O and W are external factors. According to the complete concept of enterprise competition strategy, strategy should be an organic combination of an enterprise's "able to do" (ie, organization's strengths and weaknesses) and "possible" (i.e. environmental opportunities and threats).
The basic steps of SWOT analysis are: (1) analysis of the internal strengths and weaknesses of enterprises can be relative to the objectives of enterprises or relative competitors. (2) analysis of the external opportunities and threats faced by enterprises may come from changes in the external environment which are not related to competition, and may also come from the changes of competitors' strength and factors, or the two ones. However, critical external opportunities and threats should be identified. (3) to match the external opportunities and threats with the internal advantages and weaknesses of the enterprise to form a feasible strategy.