What is SWOT Analysis? Unlike what it seems, this is not the analysis. It is merely the means to capture information for one to be able to do the analysis later on.
The SWOT analysis is about capitalizing strengths, overcoming weaknesses, exploiting opportunities, and countering threats. It is used in the context for organizations, projects, or other situations. Through the use of a SWOT analysis, it would show the prominent aspects of the subject; identifying the external and internal environments.
It aids a company to develop a full awareness of all the factors that are involved in a decision.
𝗪𝗵𝗲𝗻 𝗱𝗼 𝘆𝗼𝘂 𝘂𝘀𝗲 𝗶𝘁?
You can apply the SWOT analysis when you’re opening a new business, exploring a new strategy, or remaking a plan halfway through its implementation. It is advisable to apply a general SWOT analysis to have a rough view of the business environment. The gain from this is critical thinking. The key ingredient of a perfect strategy, it is vital to analyze and judge your weaknesses and threats.
𝗛𝗼𝘄 𝗱𝗼 𝘆𝗼𝘂 𝘂𝘀𝗲 𝗶𝘁?
To draft a SWOT analysis, create a table and split it into four departments, each element side-by-side for comparison; Strength – Weakness, and Opportunity – Threat. It would make the difference of the factors more prominent, with Strength – Weakness for internal factors and Opportunity – Threat for external factors.
𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗙𝗮𝗰𝘁𝗼𝗿𝘀 (𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵 – 𝗪𝗲𝗮𝗸𝗻𝗲𝘀𝘀)
What lies here is resources and experience that are available and under your business control. In short, internal factors are things that are within your capabilities. Matters regarding resources that are financial, physical that is location and facilities, the number of employees or the target market falls into this factor. So list them accordingly to either the positive or negative attributes to your business.
𝗘𝘅𝘁𝗲𝗿𝗻𝗮𝗹 𝗙𝗮𝗰𝘁𝗼𝗿𝘀 (𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 – 𝗧𝗵𝗿𝗲𝗮𝘁)
For this factor, it is things that could indirectly impact your company positively or negatively, matters that are out of your business control. However, you could take advantage of the opportunity to lessen the damage of the threat. This makes SWOT analysis imperative to your business planning.
Market trends, demographics, economic trends, law, and political condition falls under this factor. Therefore, split them into elements that could be developed or pose a risk. Once you have worked out the factors in your SWOT analysis, you can then proceed to figure out a strategy. Using your understanding of the implications, develop a plan of action to proceed!
Listed below are some of the tools which provide templates and guidelines you can use to help you in your SWOT analysis.
- Canva
- Creately
- Smartsheet
- MindTools
