Do not worry.
This is not something that requires exceptional technical knowledge or teams of business consultants.In fact, a SWOT analysis can be quick and easy.Some might even call it funny – if you do it right, of course.If you have questions about how to do a SWOT analysis or why you should do one, read on.
What is a SWOT analysis?
SWOT analysis is a way to analyze various aspects of your company and determine how competitive it is.This can help you decide which strategies to use in the future to further your success.Let’s take a closer look at the SWOT analysis.
SWOT stands for Strengths, Weaknesses, Opportunities and Threats.In other words, a SWOT analysis reveals the strengths and weaknesses of your company and also identifies any opportunities and threats that you may face in the current market.Let’s look at each category individually.
Strengths
This is where you can determine what your company is doing well.Identify the areas that set you apart from your competitors.See what advantages you have over others.The more specific you can be about your strengths, the better your SWOT analysis will turn out.
Weak sides
No matter how good your company is, it is not perfect.By looking at your weaknesses, you can see where you are failing.Identify aspects of your business that may be preventing you from reaching your goals.
Identify areas that need improvement.As you will see, pointing out your weaknesses is an essential part of getting the most out of your SWOT analysis.
Capabilities
The market is constantly changing. This is where you identify any possibilities that you may not have thought of before.Think about what new prospects you can get.
What new niches can you enter.Identify emerging trends that you could capitalize on.Pay attention to favorable changes in your market that can give you a significant advantage over your competitors.
Threats
All opportunities are associated with positive changes in the market.On the other hand, threats can be bad news for your company.Pay attention to any factors in the marketplace that could end up hurting your business.
Think about the potential risks that may arise as you grow.Think of situations that might be difficult for your efforts to attract more customers.By working with these four categories, you will be able to conduct a comprehensive SWOT analysis.Another thing to note is that you will be considering both internal and external factors.
Strengths and weaknesses relate mainly to the internal parts of your company. These are things you can control.All opportunities and threats are associated with external elements. These are things that are out of your control.So now you know what a SWOT analysis entails.
Now how do you do it?
Believe it or not, it’s actually quite simple.
SWOT analysis is not something that is reserved exclusively for large companies with lots of resources. This is something that almost any company can do.As you might have guessed, it’s all about brainstorming.
So if you’re working with a small group of people, get them together to get started.If you work on your own, you can do it all yourself. However, it would be helpful if you invite a few close friends or colleagues who know about your company.Most SWOT analyzes are done by building a grid of four boxes.
In each box, you place one of the four categories discussed above.The top two squares will have strengths on the left and weaknesses on the right. The bottom two squares on the left will be Opportunities and on the right will be Threats.