With the bulk of resources on your desk, are you searching for a way to crack a strategy to grow your business to the next level? Here is a tool called SWOT Analysis to sort and make headway on your business.
What Is SWOT Analysis?
SWOT analysis is a strategic technique used to determine
- Strength
- Weakness
- Opportunities
- Threats
SWOT analysis can be used for an organization or an individual business person and even for particular projects of a team. These four elements are applied to identify your place among the competitors and get rid of your weakness and set a benchmark to gain a competitive advantage.
SWOT analysis is illustrated with the SWOT matrix which represents the four elements that are interlinked with each other.
The four elements are categorized into
- Internal Factors
- External Factors
Internal Factors
Strength and Weakness are the internal factors of an organization.
Strength
Strength is a characteristic that has more advantages when compared to competitors.
It is crucial to identify your strength in both the internal and external (what other competitors see) perspective.
Important factors to be considered when you define your strength are
- Financial structure
- Human resource
- Production capacity
- Research and development
- Loyal to Customer or Client
Any factors that drive your business to meet the goals and objectives can be defined as a strength.
It will be more essential if your strength meets and provides an appropriate solution to an uncertain situation or threats in your organization.
Weakness
After identifying your strengths it’s time to identify the weakness considering the same factors that you find in strengths.
But you have to be realistic and more diligent while determining the factors and ready to accept the existing problems from every aspect where you lack.
It may look hard to compete with the disadvantages you have but if you work consistently by eliminating ineffectiveness you could attain the position in your marketplace and gain the advantage.
External Factors
Opportunities and Threats are the external factors of an organization.
Opportunities
Opportunity is a time or situation to find every possible way to make things happen for your future by overcoming weaknesses.
Think it in a broad way to use all the resources to increase the competitiveness of your organization
You will have to look at the following external factors that create a good impact on your business
- Market environment
- Trend
- Legislation and policies
- Demographic information
- Economy
Threats
Problems from outside the organization that comes from any direction are seen as a threat and it would be difficult to face such challenges in an uncertain situation.
Sudden changes in an existing environment could create an adverse impact on your business performance and stand as an obstacle to prevent you from not reaching your stated goals.
There will be a need for you to be anticipated about threats and strive hard by putting efforts to mitigate such threats you may face.
How To Do Swot Analysis?
SWOT analysis is a prime part of a business strategy that can be implemented at all levels of an organization. It also can be used in specific projects, products, or services.
Conducting periodical meetings by management with the team and maintaining coordination and list out the barriers that limit your common goals. It will give good results.
Deciding and directing the team to beat those barriers and reveal the possible outcomes by conducting brainstorming sessions.
By conducting such sessions will interpret the elements and attributes that are constituted in the SWOT Matrix.
This gives a clear understanding for the team members and managers about what logic would work for them individually, to achieve the objectives of an organization.
Reader’s Insight
Let us know if we miss out on anything on this article swot analysis and share your thoughts in the comment section.
