In theory, this analysis will help you take advantage of your strengths, seizing business opportunities in the market due to competitors' weaknesses or when these competitors leave the market vacant.
SWOT is an English acronym for: strengths, weaknesses, business opportunities and threats of a business. When starting a business, when preparing for a new business project, or when planning a business strategy for any company, you must evaluate factors not only in your business but also from competitors' business activities and the current business environment. SWOT analysis of factors is such an analysis.
Completing a SWOT analysis helps you figure out how to minimize the negative impact of your weaknesses on your business results while maximizing your strengths.
Basic SWOT analysis
You can conduct a basic SWOT analysis in a group meeting with members of your company, or just by yourself if you have your own store.
To begin conducting a SWOT analysis, create four categories, one for each SWOT factor. Then start filling out the categories.
S – strengths: Evaluate what your company does well? What makes you stand out from your competitors? What advantages do you have compared to other businesses?
– W – Weaknesses: List the areas where you have difficulty and must work on them. What do customers complain about? What requirements is your sales team not meeting?
– O Opportunities: Try to find areas where your company's strengths have not been fully exploited. Do market trends align with your company's strengths? Is there an area of your product or service that you could do well but isn't doing yet?
– T – Threats: Consider issues both inside and outside the company that could damage your business performance. What are the company's internal issues including financial status, development and difficulties encountered? External issues include, are your competitors getting stronger? Are market trends deepening your weaknesses? Do you see any threats to your company's success?
Thorough SWOT analysis
A more in-depth SWOT analysis can help you understand your competitive position in the market. For a thorough SWOT analysis, supplement the basic SWOT analysis with more information about your competitors.
Pay attention to Internet-related activities such as membership in a trade organization, Internet search engines, and links from external websites to the company's website. This will help you quickly detect business opportunities and threats for your company.
You can also thoroughly analyze the business environment. Usually, business opportunities arise when the business market changes.
Some examples of business opportunity analysis
- A new market trend where demand far exceeds supply according to quality standards. For example, in the past, consumers wanted to consume clean foods that still had good taste, causing a shortage of quality natural food alternatives.
- A segment of customers is emerging and increasingly dominant, but your competitors are unable to meet their specific needs. This phenomenon occurred among Hispanic Americans during the late 1990s and early 2000s.
- A customer, competitor or supplier goes out of business or merges with another company. The recent crisis situation for Com companies is an example. When each business ends its business, it brings opportunities to attract customers to other businesses.
You can also improve the quality of your SWOT analysis by conducting surveys. You can learn a lot about your business as well as your competitors. Areas where you can conduct research include: (1) customer awareness, interest rates, usage and trial of products and services; (2) trademarks, business locations and company image; (3) the importance of location and product differences to your customers; and (4) Quality of business location and products.
When using basic or advanced methods to conduct a SWOT analysis, you must be sure to do so with deep insights. Using SWOT analysis will increase efficiency in business planning or marketing strategy planning.
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