SWOT analysis is a strategic planning tool that helps managers identify the strengths and weaknesses of their business, as well as any opportunities and threats that may exist in a specific situation.
A SWOT analysis is also a good tool for the overall business strategy and to use as a starting point for team discussions.
About this we will talk in this article.
Continue Reading to understand what SWOT analysis is and how to use it in your company!
The concept of SWOT analysis
The acronym of Forces (Strengths), weaknesses (Weaknesses), Opportunities (chances) and threats (Threats), SWOT analysis, when conducted correctly, can help to discover a wealth of information and be useful in various situations.
We can summarize the concept OF SWOT analysis as an organised list of the greatest strengths, weaknesses, opportunities and threats of the Yours and The Mprey.
A SWOT analysis is best conducted by a group of people with different perspectives and participations in the business. Management, sales, customer service and even customers can contribute a valid view. In addition, the SWOT analysis process is an opportunity to join your team and encourage your participation and adherence to the resulting strategy of your company.
How to do a SWOT analysis
A SWOT analysis is far from scientific. There is no objective way to measure how well it is accomplished. It depends on your ability to observe and recall internal and external factors that may affect your business.
Keep in mind: it is not about making accurate predictions; It’s not about knowing what to plan, either. We’re talking about a tool, a means, not an end.
See, then, three steps to conducting a SWOT analysis:
Step 1: Gather the right people
While important business decisions are usually made by founders and top-level employees, a SWOT analysis needs multidisciplinary looks.
Step 2: Organize a brainstorming session
After assembling your team, organize a brainstorming session with everyone involved. You can list strengths, weaknesses, opportunities, and threats together (applicable with small teams) or ask participants to create and submit lists individually (in the case of larger teams).
Include everything that appears in each category. Don’t worry about the importance of every remark at this stage — the idea is not to lose anything.
Step 3: Fill in the gaps
After exhausting everyone’s ideas and presenting four great lists, it’s time to start filling gaps where an additional explanationis needed. This is an opportunity for you and your team to ask questions that will determine the importance of each item in the list — as you will see next!
Using a SWOT analysis matrix
A SWOT matrix is usually represented as a square divided into four parts. Each quadrant represents an element of SWOT analysis (strengths, weaknesses, opportunities, threats).
The easiest way to start filling each part of the frame is by answering a series of questions. Use the list below to get started, focusing on the issues most relevant to your business and current situation:
? Questions to consider in the framework of forces:
- What is your company doing well?
- What are the team’s unique skills?
- What specialized or specialized knowledge does your team have?
- What is the company’s experience in the market (including comparing with competition)?
- What does your business do better than your competitors?
- Where is your brand more profitable (product, service?)?
? Questions to consider in the framework of weaknesses:
- Which areas do you need to improve on?
- What resources are missing?
- What parts of your business are not very profitable?
- Where does your team need more education/training and/or experience?
- What costs a lot of time and/or money to be realized?
? Questions to consider in the opportunities framework:
- What are the business goals you are currently working on?
- How can you do more with your already conquered customers?
- How can you use technology to improve your business?
- Are there new target audiences that the brand has the potential to achieve?
- Are there related products and services that offer an opportunity for your company?
? Questions to consider in the threat framework:
- What obstacles does your company currently face?
- What are the strengths of your biggest competitors?
- What are your competitors doing that you can’t do?
- What is happening in the economy (regional or national, according to its market)?
- What is happening in the segment where your company operates?
Using compiled data in a SWOT analysis
One of the most important parts of your SWOT analysis is to use the data you’ve compiled to identify new strategies and objectives for your business. For example, you can:
- Create a plan to increase your strengths even further;
- List ways to work on building your weaknesses;
- Define goals for each of the opportunities you have identified;
- Elaborate a plan to use your strengths to reduce identified threats.
Then look for ways to combine data from different quadrants in even more ways:
- Explore How you can combine your strengths and opportunities to develop new strategies;
- Try to combine strengths and threats to identify the threats you can eliminate;
- See your weaknesses and opportunities to create a list of areas that are ready to improve;
- Make a list of areas to prevent you from falling into weaknesses and threats.
Once you understand how to compile your SWOT data and find ways to use it strategically, SWOT analysis will be a tool that you can use over and over again in your company to explore new opportunities and improve your process of decision-making.
How about, you already do SWOT analysis? Did you like the examples and tips we cited in this text? Leave your comment!