Do you know your business’s strengths and shortcomings?
For an organization to succeed, it should know its strengths and weaknesses. A SWOT analysis most well-known tool that organizations use to investigate their present condition and position themselves for what’s to come.
What is a SWOT analysis?
SWOT is an abbreviation for Strengths, Weaknesses, Opportunities, and Threats.
The SWOT analysis assists you with perceiving how you appear in the commercial sector, how you can develop as a business, and where you are weak. This simple-to-utilize tool likewise assists you with distinguishing your organization’s chances and any dangers it faces. The cycle assesses both the inward and outside factors your organization should explore.
Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.
Opportunities and threats are external—things that are going on outside your company, in the larger market.
You can take advantage of opportunities and protect against threats, but you can’t change them.
Examples include competitors, prices of raw materials, customer shopping trends regulatory situations in the market.
Strengths in SWOT analysis are the attributes within an organization that are considered to be necessary for the ultimate success of a project. Strengths are resources and capabilities that can be used for competitive advantage. Examples of strengths that are often cited include:
- Strong brand names
- Good reputation
- Cost advantages of proprietary know-how
The factors within the SWOT analysis formula that could prevent successful results within a project are Weaknesses. Weaknesses include factors such as an abundance of rivalry between departments, a weak internal communication system, lack of funding and an inadequate amount of materials. Weaknesses can derail a project before it even begins. Other Weaknesses include:
- Weak brand name
- Poor reputation
- Ineffective and high-cost structure
Opportunities are classified as external elements that might be helpful in achieving the goals set for the project. These factors could involve vendors who wish to work with the company to help achieve success, the positive perception of the company by the general public, and market conditions that could make the project desirable to the segment of the market.
Additional Opportunities include:
- The arrival of new technology
- Unfulfilled customer needs
- Taking business courses (training)
These external factors could gravely affect the success of the project or business venture. The possible threats that are critical to any SWOT analysis include a negative public image, no ready-made market for the final product and the lack of vendors who are able to supply raw materials for the project. Some other threats include:
- Trend changes
- New regulations
- New substitute products
Consequently, the SWOT Analysis is at times called situational assessment or situational analysis and the SWOT grid is in some cases called an IE framework.
A SWOT analysis doesn’t need to be a long, complex record. A few pages of point-structure notes are typically adequate to zero in on fundamental discoveries.
SWOT – Questions to consider
Here are a few questions that you can ask your team when you’re building your SWOT analysis.
Strengths are internal, positive attributes of your company. These are things that are within your control.
- What business processes are successful?
- What assets do you have in your teams? (i.e. knowledge, education, network, skills, and reputation)
- What physical assets do you have, such as customers, equipment, technology, cash, and patents?
- What competitive advantages do you have over your competition?
Weaknesses are negative factors that detract from your strengths. These are things that you might need to improve on to be competitive.
- Are there things that your business needs to be competitive?
- What business processes need improvement?
- Are there tangible assets that your company needs, such as money or equipment?
- Are there gaps on your team?
- Is your location ideal for your success?
Opportunities are external factors in your business environment that are likely to contribute to your success.
- Is your market growing, are there trends that will encourage people to buy more of what you are selling?
- Are there upcoming events that your company may be able to take advantage of to grow the business?
- Are there upcoming changes to regulations that might impact your company positively?
- If your business is up and running, do customers think highly of you?
Threats are external factors that you have no control over. You may want to consider putting in place contingency plans for dealing with them if they occur.
- Do you have potential competitors who may enter your market?
- Will suppliers always be able to supply the raw materials you need at the prices you need?
- Could future developments in technology change how you do business?
- Is consumer behaviour changing in a way that could negatively impact your business?
- Are there market trends that could become a threat?
About the Author
P. Wakesho & K . Wahome
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