A SWOT analysis is used to access the Strengths, Weakness, Opportunities, and Threats of an organization. It helps to identify the positives and the negatives faced by the organization at that instant of time. The strengths and the weakness are the internal areas, and they are under the control of the organizations. Whereas, the threats and the opportunities are the external forces that can bring benefit or risk to your business.
SWOT analysis provides a clear scene of the current situation of the business. The study will provide the insight to design the suitable plans for the business. SWOT also helps in driving the business to the fullest of its potential.
How to Conduct SWOT ANALYSIS
- Prepare a table and separate the positive factors (strengths and opportunities) and the negative factors (weakness and threats).
- Fill the table according to the purpose of the analysis.
- After filling up the table, analyze the data and build the necessary strategies to make your business competitive.
Strength
- Identify the advantages of your organization
- Identify the things you are good at when compared to your competitors.
- Analyse what is seen as your strength by the people in the market.
- Note down the factors that can get you the sale.
- Make a note of the USP (Unique Selling Proposition) of the organization.
Weakness
- The things to improve.
- The things to be avoided.
- The factors causing the loss of sales.
- The things that are seen as your weakness by the people in the market.
Opportunities
- The spottable good opportunities.
- The awareness of interesting trends.
- Technological and Market changes on a broad or narrow scale.
- Field related changes in the government policy.
- Local events or changes in social patterns, lifestyle, or any other factor.
Threats
- The hurdles or obstacles faced by the business.
- The activities of the competitors.
- Identify if your quality standards of the products or services are changing.
- Does the changing technology pose a threat to your organization?
- Does any of your weakness pose a major threat to your business?
Implications
The internal strengths and weakness, when compared and analyzed with the external opportunities and threats, offers additional insight into the condition and potential of the business. The SWOT analysis will help an organization to use the strengths to exploit the opportunities and to understand the weakness so that the threats can be minimized. The true value of SWOT analysis lies when the most promising opportunity is identified and when the most significant threat is avoided.