Did You Try SWOT For Your Business?
Every business requires analysing its strengths and weaknesses to improve its strategic planning to prepare for the future. A SWOT analysis is one of the proven tools that companies can use to gain insights about their business as it is data-driven, factual and acts as a guide. It also involves listing out opportunities and threats as external conditions.
SWOT analysis is a common practice for strategizing marketing plans for a company. it can be used across a wealth of applications, such as decision-making on product launches, choosing the right person for a role, etc. Let’s have a deep dive into SWOT analysis and how it can work for your business.
What is SWOT Analysis?
SWOT stands for strengths, weaknesses, opportunities and threats, and it is a commonly used tool in decision making. It analyses both internal and external conditions. The internal factors can influence an individual, process or company, be it positively or negatively, whereas external factors revolve around the aspects that you or your business may or may not be able to control, such as competition.
What is the SWOT Analysis Framework?
It is also called a matrix. A framework structure of how SWOT analysis is conducted is basically in the form of a square with four quadrants each for a factor mentioned below.
These are the internal and positive factors that can affect an individual or a company. Strengths include listing advantages, capital, education, network, skills, background, distribution channels, technology, etc. Anything that shows the ‘strength’ of a person or an organization is enlisted here. This goes on the first quadrant, i.e., the top left.
Weaknesses are aspects of an individual or a business that are internal and can affect them negatively. They can include disadvantages, lack of education, competitive edge, limited resources, poor organizational structure, etc. This goes on the second quadrant, i.e., the top right.
These are external factors that can positively affect a person, process or company, such as listing out a competitive edge over others, market research, brand perception, etc. This is enlisted on the third quadrant, i.e., bottom left.
The last are threats - the external factors that can negatively affect a person, process or company. They include a plunge in any industry or economy, obstacles for a company, competitors, government regulations, etc. As per the SWOT analysis matrix, this goes on the fourth quadrant on the bottom-right corner.
How to Conduct a SWOT Analysis?
Ideally, a SWOT analysis is conducted after you have a thorough knowledge of your subject. Once you are done, you can create a framework titling them as S.W.O.T. With each quadrant, find out your strengths, weaknesses, opportunities and threats, one by one, before drawing any conclusions. The process isn’t lengthy but you should take some time to point out and list these four factors for any decision you want to make.
Having a team on board for SWOT analysis gives you a broad outlook on any subject with varied opinions. You can use SWOT analysis for literally anything, be it deciding what car to buy, whom to hire for a position, marketing strategy for a business, and so on. SWOT can help you make any decisions, such as hiring someone or opting for a new process, analysing the core KPIs of existing processes or technologies, etc. But SWOT analysis does have its limitations. You need a mentor to help create a SWOT analysis and assist in making significant decisions with careful research, and that’s where Don Veirboom at Four Tree Coaching comes in.
He is a professional business coach with a career spanning 20+ years with exposure to entry-level sales, VP of Furniture Sales, and head honcho of D.T.C. at All Weather Windows, among others and overall, a perfect guy to seek mentorship from. Reach out today!