Understanding and identifying the key issues that are affecting your business can help you find effective solutions. But how do you carry out such an analysis?
A SWOT matrix can assist you in determining ways to develop your business. This can push your business forward and assist you in implementing potential business strategies.
This article will highlight,
What is SWOT analysis? | Basic key areas of SWOT analysis. | A short example. | Why should you conduct the SWOT analysis for your business?
What is a SWOT analysis?
SWOT matrix or analysis is a way of identifying the key characteristics which are the strengths, weaknesses, opportunities, and threats. This is a strategic planning procedure that is done according to the business’s project. A clear report and analysis are done to specify the objectives of the venture.
After rounds of questions and answers, the competitive advantage of the project is generated. The best part of conducting a SWOT analysis is that you don’t need any extra cost. Moreover, you can make SWOT analysis Microsoft Word and SWOT analysis PowerPoint Slides too.
Breaking down the basic areas of SWOT matrix
As we have mentioned SWOT is Strengths, Weaknesses, Opportunities, and Threats. ThVisual Content strengths and weaknesses are internal factors. While the opportunities and threats are external factors.
Now how can these factors benefit for your business? Let us decode each one of them.
The strength of any company lies in one aspect that gives you a competitive edge against other businesses. It includes both tangible, intangible and human resources also. These must be the things that your company does well and is consistently doing well in the present too.
Every business has its own limitations, challenges, and weaknesses. After finding the strengths, listing these weaknesses is also important. These can include a lack of skilled people, fields in which your competitors are better than you and other resource limitations.
Opportunity is finding different ways to improve your business. You can develop reliable projects that have very few competitors. Otherwise, organizations can cover the emerging demand for projects. To enhance the brand, you can make use of the media or press. So look for opportunities that can take your goals to an advanced level.
Threats are the possible risks and challenges you will face as a company. These can either be long term or for the near future. Some of the common threats are financial risks, the pressure to achieve more due to new competitors and the change in behavior of customers. For large enterprises, false or negative press coverages also pose a major threat.
Generally, This analysis is done in a team as it needs effective timework. You can gather everyone involved in the project. It is important that representatives from all of the departments in the company are present.
- You can start by explaining the four objectives of SWOT. Allow each of them to pen down ideas in each objective.
- Later you can put them up and start organizing similar ideas that were given by the representatives.
- The project manager can select a few ideas suitable for the current situation.
- This can be drafted either as a SWOT analysis Microsoft Word or SWOT analysis PowerPoint Slides.
A short example
Now let us understand this technique with examples.
Let us consider a cafe which is planning to open a second branch in the nearby city. This city has good potential for new businesses. There is a large possibility that this business can be expanded in the future.
In this case, the strengths of the business are the location and experience (from the first branch). The weaknesses could be financial risks and getting exposed to a new place. The opportunities will include the demand for businesses in the area. The threats are the existing competitors and will take time to gather loyal customers and also it will require more cost of customer acquisition.
This is just a possibility to write a SWOT analysis.
Know More: Examples of SWOT analysis.
Why should you conduct the SWOT analysis for your business?
A SWOT matrix or analysis is done to understand your company better.
- You can be aware of the various weaknesses of your company.
- You can make a list of opportunities and capitalize on them.
- A proper analysis can develop strategies to achieve business goals and visions.
- You can use the strengths in an effective way to enhance the brand.
Although, you can only analyze these factors and cannot draft solutions for them. Yet this technique consumes less time and you can know where your brand stands against the competitors.
By making SWOT analysis Microsoft Word and SWOT analysis PowerPoint Slides you can make a clear statement about the project. All the objectives and purpose of the project becomes clear. You can start finding solutions to problems and use the strengths as an advantage.
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