Do you ever find it’s easier to execute something when you have a strategy planned out? Many people have resolved to strategic planning for bringing in many required changes towards success. It is very easy to grow when you are aware of your strengths, weaknesses, opportunities as well as threats. But, how to sum up all these necessary factors? To sum every strength, weakness, opportunity and threat for one’s organisation has been provided, you need to know what is SWOT analysis.
Analysing SWOT Analysis
Analysing SWOT analysis is very necessary to understand and decode this business analysis method. A strategically designed method to bring out key points of an organisation’s performance is SWOT Analysis.
What is SWOT Analysis?
SWOT stands for
- S – Strengths
- W – Weaknesses
- O – Opportunities
- T – Threats
All the above-mentioned aspects of a business when analysed together form the basis for SWOT analysis. So to define, SWOT analysis is a tool to develop business strategy using internal factors: Strength and Weakness and external factors Opportunities and Threat.
SWOT analysis can be brought to use by organisations for utilising their merits to be successful. This helps an organisation’s own strengths come to it’s rescue. With strength being an organization’s plus factor one can also be humble by releasing various weaknesses and threats to the organisation. Working on them will do nothing but strengthen the organisation.
SWOT analysis gives one a playfield to help an organisation evaluate oneself against various competitors. Helping in formation of plans more inclined to be successful.
Diving deeper into every aspect of SWOT Analysis
Understand a method of analysis in the best possible manner, it is important to keenly inspect. So, diving in deeper, here are the four aspects, Strengths, Weaknesses, Opportunities and Threats explained thoroughly,
Strengths stand as a factor in your organisation, which helps you differentiate and stand alone from other competitors in the industry. Every minute quality that sets you ahead of your competitor is your strength. Strengths might range from a very positively motivated working environment to the company’s infrastructure equipped with the latest technology.
One aspect about strengths that needs clarity is, the strength you considered should bring in various advantages to your company. Strengths hold the ability to make your competitors enlist your strength as their weakness.
SWOT analysis is not all about your positive attributes. The analysing method provides equal leverage to your weaknesses. While analysing your weaknesses you need to be honest with yourself. And information which is untrustworthy will bring no results.
SWOT analysis helps you to face reality.Tweet
Weaknesses are things that are the characteristic of your organisation. All one needs to do in order to fish out the weaknesses is to scramble around in the people, resources, systems as well as procedure at the organisation. Weaknesses mostly include the area that requires improvement and some of the practices your organisation needs to skip.
One thing is for sure, opportunities are always provided every now and then. It is up to an individual or the team to recognise and grab at the right time. Opportunities mostly based on external events. Dazzer keeping yourself informed about the things happening around you is important.
Opportunities also need keeping an eye on the future. This includes estimating future opportunities. Opportunities are integral part of SWOT analysis because they help organisations grow.
Threats are basically every single aspect around you which can result in a negative outcome. This aspect of thread a makes it very necessary for you to consider for estimating threats important. Readily being able to face present and future spreads will help you overcome a great loss you might face. Taking action against threats is very necessary. It is a One way Street. Either you go down or the threats go down. Decide for yourself!
How to perform SWOT Analysis?
SWOT analysis has been formulated to give quick answers to important aspects of an organisation. These aspects include,
- Internal Factors
- External Factors
Internal Factors in SWOT analysis
Internal factors are various negative as well as positive aspects of you managing your business. These factors are completely dependent on you as an individual or you as a team or organisation. Internal factors include other below mentioned,
To find out the strengths to your organisation, you need some specific questions floating through your minds. Some of them are listed below,
- What makes your product lovable to the customers?
- What services does your company lead in respect to your competitors?
- In what resources are you leading in comparison with your competitor?
- What are some positive characteristics of your brand?
- What makes you unique?
The mentioned questions once brainstormed by you and your team, will leave you with a list of your own strengths.
To bring out the weaknesses in an organisation there again is a set of questions. These below are a few questions that might help an organisation realise their weaknesses,
- What dislikes have your customers expressed for your company or product?
- Where does the negative feedback from the customers indicate in the reviews?
- What are the reasons behind your customers cancelling your product?
- Which aspect can be made better at your company?
- What can be considered a negative characteristic of your brand?
- Where do you feel the maximum challenge regarding sales?
- Where do you lack resources in respect to your competitors?
You will find above mentioned questions leading you directly to your strengths and weaknesses. This is how you can easily determine the internal factors affecting your business.
External Factors in SWOT analysis
It has been acknowledged by various analysts that determining once weaknesses and strengths (Internal factors) is easier when compared to external factors. The external factors are more likely to incline towards data. They require efforts in research and therefore are comparatively tougher than analysing internal factors. External factors include,
Opportunities can again be fished out by bringing in use the questions below,
- By questioning the improvement of your relationships between sales and customer as well as onboarding and customer support.
- Are the resources being utilised to the full potential?
- How can the engagement of local brand advocates grow?
- Which advertising methods are working the best for us?
- Where does the investment need to go the most?
Threats can again be evaluated and brought into light by the similar questions as frontend to the opportunities. It has been brought to light that threats are much easier to be acknowledged without putting forth questions. Most likely threats might consist of,
- A rapidly growing competitor
- Changing market volatility
- Maintaining higher staff than turnover
Why does SWOT analysis hold importance?
There are various reasons for which SWOT analysis holds importance. Not only in business but every sector of life. Below are some points mentioning it’s importance,
- Helps an organisation to determine their position or the current state.
- SWOT analysis is known to help an analyse all the strengths, opportunities, weaknesses and threats of a company. This helps companies decide their future steps.
- Beneficial for companies to position themselves in the competitive market.
- Analysing once strength can help the company to make their way into the market. This happens in the most organic manner.
- SWOT analysis is also very beneficial to target a company’s weakness. Helps to gradually work on them and make those strengths.
- This type of business analysis provides a clear view of the negative and positive factors. Therefore helps businesses to easily target and deal with them.
- SWOT analysis gives the properly formulated strategic view of a company’s drawbacks as well as strengths. This helps a company to take required action for long-term growth of the business.
What are some examples of SWOT Analysis?
SWOT analysis can be put out through various examples. Some examples to get a hold of SWOT analysis are mentioned below,
SWOT Analysis Examples:
SWOT analysis example 1) Yoga in the mornings
- Good body shape
- Healthy Body
- Healthy Mind
- Increased flexibility
- Benefitted heart health
- Increased concentration
- Increased appetite
- Grow stronger
- Live longer
- Live Healthier
- Extensive muscle stretch
- Extensive tendon stretch
- Body injuries
- Missing out on exercises
- Missing out on meditation
- Negative effects on body
Doing yoga being low maintenance and versatile has the best chance at competing with a high trainer cost gradually but surely.
SWOT analysis example 2: Having cereals for breakfast
- Increased intake of carbohydrate
- Increased intake of total sugars
- Lowered intake of fat
- Lowered cholesterol intakes
- Developed micronutrient intake
- Increased milk intake
- Helps save time
- Easy accessibility
- Better heart health
- Keeps you fit
- Lesser intake of vitamins and minerals
- Lower calcium intake
- Missing out on salad as breakfast
- Missing out on toasts
Cereals are pocket friendly and can very easily compete with any other breakfast in energy consumption.
SWOT analysis example: Taking Science stream for Intermediate
- Getting acknowledged about things around
- Being practical and creative
- Learning to feed on information
- Unveiling the secrets of universe
- Reputation in society
- Become a lecturer
- Become a scientist
- Opportunity to be a doctor
- Become an engineer
- Become a teacher
- Opportunity to be an astronaut
- Lacking job opportunities
- High competition
- Mediocrity isn’t appreciated
- Is mainstream
- Miss out on owning a business
- Miss out on being a dancer
- Give up on the chance on being a painter
- Miss out on being a banker
Taking Science Stream in intermediate will help follow your passion into the vast domain of the universe and it’s secret unveiling.
SWOT analysis example: Hiring a copywriter for your site
- Brings in energy and hard work.
- Brings in experience
- Time efficient
- Brings in catchy phrases
- Well versed on latest trends as well as technology
- Learn powerful and fruitful ideas
- Potential full time copywriter
- Immense website growth
- Bringing in organic traffic
- Experience communication gap
- Compatibility with the website niche
- Might not be the best
- Can be a big dent on expenses
- Results can be not as expected
Hiring a copywriter for the website, helps website digital marketing being handled with immense experience. Leads to growth of websites and increased sales.
SWOT analysis example: Using Paid Software for Project Management
- Has various extra features for user convenience
- The paid softwares is more complex and useful for keen project management.
- You get immense features to choose from
- Customer support is available 24×7.
- The software keeps updating frequently
- Cannot be used without having set a financial commitment
- Puts a limit on company resources
- Paying but not getting money worth
- The user interface can be way complex to be easily accessible.
- Miss out on other paid and better project management softwares.
Paid project management might have it’s limitations and threats but, the strengths and opportunities provided by it are enough to outweigh them.
SWOT analysis helps you envision your future business strategy in the best possible manner. It has proved to be very powerful when it comes to brainstorming ideas by analysing strengths, weaknesses, opportunities as well as threats to an organisation. Making SWOT analysis a part of your meetings will help you consider and reframe every different aspect of SWOT. You will be able to compare the input from various individuals and make your work easier as well as productive.
SWOT analysis can be utilised by various companies and organisations as a highlight of their strategic meetings. It can be centred around a business or it can be an approach to any sales project in the company. SWOT analysis helps you filter out the ideas by instant and rapid realisations.
Books recommended for SWOT analysis
This article is contributed by Ms Rashi Arera. Passionate about writing, Rashi sees herself as an artistically inclined and intellectually dominant individual. Writer by profession, her goal is conveying knowledge while maintaining relatability.
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