Section 5.06 S.W.O.T Analysis Tools

Module 5

Section 5.06

S.W.O.T Analysis Tools

A SWOT analysis involves asking and analysing the internal and external effects of our business to gain competitive advantages – Melvin Mayard

What Is A S.W.O.T Analysis?

A SWOT analysis is a technique for evaluating these four areas of your business. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

SWOT Analysis is a tool that can assist you in analysing what your organisation does best right now and developing a successful future strategy. SWOT can also reveal aspects of your business holding you back or that your competitors could take advantage of if you don’t protect yourself.

A SWOT analysis looks at internal and external issues, or what’s happening inside and outside your company. So you’ll have some control over some of these elements, and others won’t. In either scenario, the best action will become clearer once you’ve identified, recorded, and analysed as many variables as possible.

SWOT may appear straightforward, but when applied thoughtfully and cooperatively, it may disclose a lot. For example, you may be well aware of some of your organisation’s strengths. Still, you may not realise how unreliable those strengths are unless you record them alongside vulnerabilities and dangers.

How To Do A Swot Analysis?

Avoid relying on your own skewed perceptions about your company. It’s possible that your assumptions are incorrect. Instead, assemble a group of people from all departments and levels to compile a comprehensive and informative list of observations.

Then, if you come across a Strength, Weakness, Opportunity, or Threat, write it down in the appropriate section of the SWOT analysis grid so that everyone can see it.

Let’s take a closer look at each area and see what fits where and what questions you could ask as part of your data collection.

Strengths

Strengths are things that your company performs exceptionally well or in a way that sets it apart from its competition. Consider the benefits your firm has over competitors. These could include employee motivation, access to specific resources, or a robust set of manufacturing methods.

Consider what makes your business “click” by thinking about your own abilities. What do you excel at that no one else does? What are the values that guide your company? What unique or low-cost resources do you have access to that others do not? Add your business’s Unique Selling Point or Proposition (USP) to the Strengths section after identifying and analysing it.

Then, from the other side of the equation, consider what your competitors would consider your strengths. What makes you think you’ll be able to beat them to the sale?

Remember that every part of your company is only a strength if it provides you with a distinct edge. If all of your competitors offer high-quality items, for example, a high-quality manufacturing method isn’t a competitive advantage: it’s a must.

Weaknesses

Your online business’ weaknesses, like its strengths, are intrinsic aspects, so concentrate on your people, resources, systems, and procedures. Consider what you could do better and what practices you should avoid.

Consider how others in your market see you. Do they detect flaws that you are oblivious to? Take some time to consider how and why your competitors are outperforming you. What is it that you are missing?

Be truthful! A SWOT analysis will only be practical if you have gathered all the necessary data. So, this is the time to be realistic and face unpleasant realities as soon as possible.

Opportunities

Opportunities are windows of opportunity or possibilities for something good to happen, but you must seize them!

They frequently originate from conditions outside your business and necessitate planning for the future. They may come as a result of changes in the market of your service or the technology you employ. The ability to recognise and capitalise on opportunities can make a significant difference in your company’s capacity to compete and dominate in your market.

Consider good prospects that you can take advantage of right away. These don’t have to be game-changers: even minor advantages can help your company compete more effectively. What noteworthy market trends, big or little, do you know about that could have an impact?

Threats

Threats include anything that can have a negative impact on your firm from the outside, such as supply-chain issues, market shifts, or a recruitment shortage. Anticipating risks and taking action against them is critical before you become a victim and your growth stagnates.

Consider the challenges you’ll have in bringing your product to market and marketing it. You may discover that your products’ quality standards or specifications are changing and that you’ll need to update those products to keep ahead of the competition. Technology is both a threat and an opportunity, constantly evolving!

Always keep in mind what your competitors are doing and whether you need to shift your focus to meet the challenge.

Before you get ahead of yourself and start drawing charts on paper, you’ll need to research to obtain all the information you’ll need to conduct a productive and realistic analysis.

You’ll need the following items to complete your SWOT analysis:

Time: It could take days, weeks, or even months, depending on the size of your company.

Data: It is objective (financial data, traffic and sales figures, etc.) as well as personal information (customer satisfaction, value proposition, unique resources, research on your competition, etc.).

It’s critical to conduct the analysis correctly and devise a strategy based on the findings.

Write Your Online Business Plans(swot analysis)

Before examining the strengths of your business, you need to have a good awareness of the state of your industry. This will help you discover new services and products to provide. Recognising your flaws allows you to protect and improve your internet business as it expands. Recognising opportunities will help you start successfully. Detecting internal and external risks prepares you to respond before systemic flaws emerge.

What do you do or will you do better than competitors due to

Experience
Innovation
Patents
Creativity
Location

Make a list of positive attributes based on what you plan to offer

Blogs:

Creative content
Original content
Exclusive access to influencers or celebrities
Products:
Efficacy
Convenience
Cost
Patent protected
Proven success
Services
Response time
Efficacy
Proven success
Innovation
Reliability
Professionalism

Weaknesses

Protecting your online business from weaknesses requires being able to identify them. Here is how you can identify what areas you’ll need to improve as you grow.

What content, services, or products are you unable to provide due to:

Size
Location
Time constraints
Lack of resources

Responding to the initial weaknesses of your online business is found in your business plan. You can protect your new company by building a strategy that lessens the impact of the weaknesses. An effective response to your weaknesses lies in properly planning:

Based on your short-term business objectives
Based on your initial budget
Based on taking full of advantage of your non-monetary resources

Opportunities

You can investigate options for your internet business after you understand your strengths and weaknesses. Here’s how you go about spotting opportunities::

Perform a Google search based on phrases potential clients would enter to find your content, product, or service
Return to your list of competitors in your industry
Read the comments, reviews, and BBB complaints for the last three to six months. Pay close attention to comments that include:
Product failures
Inflexible TOS (terms of service)
Ignored customer suggestions to correct simple service misunderstandings
Customers looking for additional product capabilities that aren’t offered by the competitor
Read articles by thought leaders that focus on emerging trends.
Industry-wide problems that need to be eliminated.
Forecasts of new customer expectancies.
New advancements in technology they consider “promising” or “game-changing”.

Threats

Identifying short-term or long-term threats to your online business can also be achieved using online research. Here is a list of research you should do every three to six months:

Research competitors’ blogs and press releases for:

Announcement of planned products
Announcement of new services
Current products or projects in beta testing
Shuttered or discontinued products and services

If all you are trying to do is essentially the same thing as your rivals, then it’s unlikely you will be very successful – Micheal Porter

Summary

Learn the SWOT and apply it to your business.
Strengths refer to the internal resources, capabilities, or advantages that an organisation or individual possesses and that can be leveraged for success.
The strengths include the Unique Selling Point or Proposition (USP).
Weaknesses are internal factors that hinder an organisation or individual’s performance or limit their potential.
Opportunities are external factors that present potential advantages or benefit an organisation or individual can capitalise on.
Threats are external factors that pose potential risks or challenges to an organisation or individual’s success.

5.06 Zoom_Mindmap

5.06 PROJECT GROUP WORK ZOOM.docx