SWOT Strategic Analysis
SWOT analysis began after following a research group from 1960 to 1970.
In the early 1960s, some enterprises developed strategies to identify specific steps to plan for the future of these companies to move away from risk and failure zones, until they had access to SWOT analysis.
The main distinction between SWOT analysis and other methods of strategic analysis is the first stage in the preparation of strategic plans for large and emerging institutions, as well as helping those working on it to make the right and influential decisions about the organization.
SWOT analysis also helps to closely identify all the strengths that improve the organization's work and to deal with weaknesses and threats that may be an obstacle to the company's career. However, this analytical method greatly helps to provide appropriate painkillers and strategic plans that are easy to develop in the future.
Highlighting SWOT's analysis, it helps to connect an entrepreneur or entrepreneur to salient and clear points to achieve goals and helps to overcome barriers and obstacles affecting abrupt corporate change processes.
What constitutes SWOT analysis?
SWOT analysis consists of strengths, weaknesses, opportunities and threats, but what do these four items mean?
Inside Points: Strength and Weakness
Strengths and weaknesses are elements of the company's internal environment analysis that identify negatives and positives within the company.
Strengths are company features that give them a competitive advantage over other companies.
They may be patents for a particular technology, distinct human resources or they may be a sophisticated and efficient system of operations, among others.
Weaknesses represent the disadvantages that may hinder the company from achieving its objectives. Some of the weaknesses are notoriety, lack of capacity and potential, or weakness in the supply chain and others.
Outside Points: Opportunities and Threats
These elements are used to analyze the external environment that may affect a company's performance. Using SWOT analysis, a company can understand the threats it can face such as economic changes in the market, certain changes in laws and regulations that may negatively affect, distribution problems, large debts, and others.
At the same time, the company can explore ways to increase its profitability and effectiveness. Some examples include new innovations, new habits in society, or agreements and partnerships with other institutions.
These elements can change quickly and abruptly. What seems to be an opportunity for the institution to quickly turn to one of the threats. Certain problems with strength elements may turn into a weakness. That's why it's not enough to make points but to ensure continuity by taking important actions such as hedging against dangerous threats and maintaining and reinforcing strengths.
When using a SWOT tool you should ask these questions for each item and fill them up in a chart that brings them together:
What can you improve?
What resources do you and any section of the company lack?
What do others see in your company as a weakness?
What special resources can you use?
What are you good at?
What do others see in your company as a point of strength?
What threats can hurt your company?
What are your competitors doing?
What are your weaknesses that may threaten a company's performance or success?
What opportunities do you have?
What trends can you use to your advantage?
How can you turn your strengths into valuable opportunities?
When answering previous questions, you will have a set of important points ahead that will make it easier for you to make the right decisions and thus lead you to success.
Let's see a simple example of global Starbucks that might help you understand SWOT analysis better:
What is the importance of SWOT analysis for companies?
If you're in marketing or owning a small business, you might wonder about how realistic SWOT analysis is and maybe about how convenient it is for small businesses, but we assure you that doing so carries with it many benefits even for smaller companies.
Doing SWOT analysis gives you a unique opportunity to get a broader and more in-depth insight into how the company works. It's easy to sink into the details of his company's day-to-day work, but doing this analysis allows him to take a broader look at the company and its position among other companies in the same field.
SWOT's analysis, on the other hand, has the potential to apply to a wide range of scenarios and is not limited to making a general assessment of the company, as you can use this analysis to assess the potential weaknesses and strengths of your upcoming ad campaign, new project plan, or even the company's involvement in an exhibition or event.
Thus, it has become self-evident that SWOT analysis allows you to know the things your company does well, the things you need to improve, the opportunities and threats you face. But doing SWOT analysis not only gives you the opportunity to know these factors but also allows you to set up plans and timelines to find potential solutions. This may be useful in preparing budget plans, identifying your employment needs, and possibly undertaking medium- and long-term strategic planning.
Before you start doing SWOT analysis with staff, you'll need to create a profile of your work in which you describe what the company is doing and who the customers are, and then do:
• Set your goals from SWOT analysis:
To get the most out of the analysis you have to have a goal you're basically pursuing, that helps determine what you should be doing, for example your company might plan to enter new markets.
• Search the market:
Before you start analyzing SWOT you'll need to understand your business, the market by talking with partners, employees, customers, and doing research on your competitors.
• Mention the strengths of your project:
Identify strengths in your business, examples can include strengths related to your brand strength, employee efficiency, finances and location of your business, cost advantages and competitiveness.
Here are 3 questions your answer will help you identify your strengths:
1. What makes you special and different from others?
2. What do people or customers praise about your brand?
3. What gives you a preferential advantage over rivals?
• Identify weaknesses:
Mention things you consider to be weaknesses in your work, that is, those that can put your work at a disadvantage, and vulnerabilities can include, for example, the inability to earn new customers, the lack of competence of employees, your low market share, etc.
You can ask these three questions to help you identify weaknesses:
1. What can you improve on your business or your products?
2. What do people or customers think you need to improve on?
3. What things do you need to avoid?
• Identify potential opportunities:
The move is to identify opportunities facing your business, product or enterprise. Opportunities point to those positive things that are out of your control and can have an impact on you.
The following questions can help you identify opportunities:
1. What technological trends could give you an advantage?
2. Are there any economic laws, policies or attitudes that work for you?
3. Are there any events going on that you can take advantage of?
• Identification of threats:
List external factors that can pose a threat or cause harm to your business, such as increased competition, higher interest rates and changes taking place in global markets. etc.
Three questions that can help you identify threats that can be faced:
1. What technological trends can disrupt or negatively affect us.
2. Are there any laws, policies or economic attitudes that could affect us in a negative way?
3. Are there any financial risks in the market that could affect us?
Upon completion of the aforementioned points analysis, you will be able to obtain an overview of the company's internal and external situation, which will help you discover:
1. How can we use our strengths to take advantage of the opportunities that have been identified?
2. How can we use these strengths to overcome specific threats?
3. What do we need to do to overcome specific weaknesses in order to take advantage of opportunities?
4. How will we reduce our vulnerabilities to overcome specific threats?
Once you have answered these questions and finalized your lists, you can now use SWOT analysis to develop your strategies and to achieve your business goals.
SWAT analysis is one of the most important components of corporate strategic planning as it analyses the company's internal and external environment.
The importance of SWAT analysis is that it helps decision making, crisis management, and content writing.
Just start by asking the right questions to see the strengths and weaknesses and take advantage of all the opportunities available to strengthen your company.