SWOT Analysis is a Technique that Analyses the Strengths, Weaknesses, Opportunities and Threats of your business. SWOT analysis gives you a brief idea about the position of your Organisation in the market, and it also helps you to understand what are all the areas of a business where you can improve and do better.
Key Takeaways
- Learn what is SWOT Analysis.
- Get the basic information about SWOT analysis.
- Learn about the important reasons why you should do a SWOT analysis.
- Learn How to prepare a SWOT analysis for your business.
What is SWOT Analysis?
“In simple words”, SWOT analysis refers to first analysing and then determining the Strength, Weaknesses, Opportunities and Threats of the business In-order to derive a successful strategy and to run the organisation effectively and efficiently.
It is a very useful tool, and it will not be wrong to say that it is a “Boon” for any business or organisation as it helps them to understand the current situation of the Company by assessing its internal strength and weaknesses and understanding the probability of the external opportunities and threats in the near future.
So by analysing all these factors One gets an Idea what all the factors whereas as a company we can improve our performances and can strengthen our weaknesses so that your niche competitor does not get any chance to exploit your weaknesses against you.
Why should I do a SWOT analysis?
Why should I do a SWOT analysis? Well! There is a very simple answer to this question. You need SWOT analysis to understand How your business is doing in the market. SWOT analysis can help you uncover the areas of the business that are holding you back. It also helps you to understand your strengths and weaknesses better so that you can work on the areas where it is required.
By doing a SWOT analysis, you also get to understand the external opportunities and threats, so if there is an opportunity in the business, you can grab it and capture more market than your niche competitor, and that’s the one way to be ahead of your competitor. Simultaneously you will also be well aware of the external threats that can harm your business.
Reasons Why you Should do a SWOT analysis
- Maximising Your Strength to Optimum level
- Lessen Your Weaknesses
- You Can Take Advantage of Opportunities
- Identify Potential Threats
- Assess Team Members.
Preparing SWOT analysis
For Preparing SWOT Analysis, you will have to list down all the factors for which you are performing SWOT analysis so that you can focus on all the main factors without missing out on any of the important aspects.
Here are some ways that can guide you to prepare your own SWOT analysis
Firstly, you have to decide your objective behind preparing SWOT Analysis
Before preparing a SWOT analysis, you will have to determine your goal behind doing a SWOT analysis for that, you will have to do strategic planning that can help you achieve your objective, and it is always good to have a proper plan, so you know what is the next move or decision that you have to make.
Research about your Business, Industry and Market
While getting started with SWOT Analysis, one needs to do some in-depth research to understand your Business position, Industry and market better, and the most effective way of research would be to analyse your own company performance so that you will get an insight into what areas you need to improve to sustain in the market for a longer duration.
Write down your Business’s strengths
Listing down your Business’s strengths gives you an idea about the strength of your company so that you know your positive points, But to determine the strength’s For example ( you will have to assess your employee’s performances, company’s financial position, Cost’s and revenues) Then you will have the perfect understanding about the strength’s of your company.
Understand Potential Opportunities for your business and also List down the potential threats to your Business
Understanding the potential external opportunities for your business can help you expand and capture more market than your competitor, and analysing the potential threats at the earliest for your business can help you to avoid any unforeseen loss or damage that can cause harm to your Business or Organisation.
List down your weaknesses
Writing down your weaknesses during SWOT analysis can give you an Insight that what are the areas in your company that need improvement and what will be the best suitable strategy you can adapt to resolve and minimise your weaknesses to a larger extent.
Must Read: What is an IT Solutions Company?
Understanding 4 sections of the SWOT matrix
1. Strengths
Strength in SWOT analysis defines the areas in which a company is doing well and is better than its “niche” competitors, and it also highlights its strong points as well like its annual income, total assets that the company acquires etc.
2. Weaknesses
Weaknesses in SWOT analysis Highlight those areas where the company is not doing well and has to improve in order to sustain in the market.
3. Opportunities
SWOT analysis tells you about the external opportunities that you can take advantage of over your competitors and create a huge impact in the market. Opportunities
4. Threats
It is important to analyse the potential threats at the beginning itself because threats can be really dangerous for your organisation. Threats to your organisation can also be seen as an opportunity for your niche competitor that can be used against your organisation any day.
Must Read: How to Rank My Website on Google?
Questions to ask during a SWOT analysis for your Business
While preparing for SWOT analysis you will have to make four different variations of questions from Strength(s), Weaknesses(w), Opportunity(o), and Threats(T)
Questions to ask during a SWOT analysis while analysing Strengths
- What do we do best than others?
- What unique knowledge, talent, or resources do we have?
- What sort of advantages do we have over our competitor?
- What type of resources do we have available?
Questions to ask during a SWOT analysis while analysing Weaknesses
- What are the areas of improvement?
- What resources are we lacking?
- What sort of disadvantages do we have in comparison to our competitors?
- In what areas do we need to groom ourselves?
Questions to ask during a SWOT analysis while analysing Opportunities
- How can we turn our strengths into opportunities?
- How can we overcome our weaknesses and turn them into opportunities?
- What could we do today that isn’t being done?
- How is our field changing and are we doing anything to adapt to those changes?
Questions to ask during a SWOT analysis while analysing Threats
- What obstacles do we face?
- Who and/or what might cause us problems in the future? How?
- Are there changes in our field or in technology that could threaten our success?
- Could any of our weaknesses stop us from achieving our goal?
4 examples of SWOT analysis for your business
Example 1
SWOT Analysis Of Restaurant
| Strengths | Weaknesses |
| High-Quality Service | High cost |
| Delivery within 30 minutes | Less variety |
| Customer-Centric Strategy | Strong Niche competitor |
| Great customer support | Lack of Brand Awareness |
| Opportunities | Threats |
| Build our Brand awareness | Home delivery Competitors |
| Huge demand for Home delivery service | Inefficient supply |
| Building strong customer relation | Declining Brand value |
| Increase geographic Reach | Bad customer review |
Example 2
SWOT Analysis of Online Learning
| Strengths | Weaknesses |
| Accessible from anywhere | Inability to function efficiently all time |
| Flexible | Lack of proper guidance |
| Multitasking | Additional costs like computers, internet |
| Learning becomes easy and comfortable | Limited access to the professors |
| Opportunities | Threats |
| Most people go for online training these days or buy a course to upskill | lack of practical knowledge |
| Easy access to enrol | Focuses more on the theoretical aspect |
| New technology allows for the better user experience | Investing more time on the internet health becomes concerned |
| Can learn any skill | A lot of competitors |
Example 3
SWOT Analysis of Hospitals
| Strengths | Weaknesses |
| Offers specialised procedures | Bad patient feedback |
| The physical unit is helpful | Dated equipment |
| Operational efficiency | Recovery time is higher than average |
| Patient satisfaction | Operates at 75% capacity |
| Opportunities | Threats |
| Updated equipment | Competition from other hospitals |
| Increase patient awareness | Loss revenue |
| Certified nurses | Patient bad feedbacks |
| Specialised doctors | Lengthy procedures |
Example 4
SWOT Analysis of the Fashion Industry
| Strengths | Weaknesses |
| Efficiency in style | Inefficiency in supply |
| Brand awareness | Lack of brand awareness |
| Unique products | Limited stocks |
| The products review is excellent | Less demands |
| Opportunities | Threats |
| Emerging trends | Multiple niche competitor |
| Different clothing style | Limited products |
| Competitive cost | High costs |
| Regular surveys | Inefficient customer support |
Conclusion
By preparing a SWOT analysis, one gets to understand the internal strengths and weaknesses as well as external opportunities and threats. SWOT-analysis helps you to examine the current situation of your organisation by assessing it.
You can also derive the best suitable strategy for the well being of the business that can help you grow better in the market. That’s why SWOT analysis for your business is important.
Frequently Asked Questions
How do you write a SWOT analysis for a business?
For writing a SWOT analysis, you need to determine the objective for conducting a SWOT analysis and also have to list down the strengths and weaknesses and external opportunities and threats.
What are some business weaknesses?
Weak, fragmented company culture.
Lack of product differentiation.
Low efficiency and high waste.
Poor customer service
What is SWOT analysis explain?
SWOT analysis is a method that determines the internal strengths and weaknesses and external opportunities and threats of the business.
What is the most common threat in the business?
The most common threat that businesses face is Phishing attacks.
