home Accounting Application swot. Identifying SWOT Analysis Participants

Application swot. Identifying SWOT Analysis Participants

You are the head of a company, but do you know everything about it? Are you ready to voice a clear plan for further development? own business? Find it difficult to answer? Then you should definitely put into practice already proven marketing research. They have already helped millions of entrepreneurs like them find the right solution. One of the main technologies is considered SWOT analysis.

What it is?

The abbreviation SWOT is an acronym for the following English words:

Strengths – strengths or advantages of the organization;
Weaknesses - weak points or shortcomings;
Opportunities - opportunities or external factors that, if properly applied, will create additional advantages for the company;
Threats – threats or possible circumstances that could harm the company.

A standard SWOT analysis is precisely a comprehensive assessment of the company’s activities, and not only its strengths, but also its weaknesses. But in the terminology adopted in this analysis, they are called sides, respectively, strong and weak. An assessment is made not only of probable external threats, but also of favorable opportunities. In this case, the results obtained must be compared with the indicators of the most strategically important competing firms.

Conducting a SWOT analysis helps answer questions such as:

Does the company fully use its personal strengths, as well as its distinctive features, in implementing its own strategy?
Which of the company's weaknesses need to be adjusted accordingly?
Which potential opportunities offer a real chance of success if all possible resources are deployed and the firm's skills are taken into account?
What possible threats should a manager pay attention to, and what actions should they take?

Marketers recommend choosing the period for carrying out a SWOT analysis when the direction in which the future development of the business is planned is formulated, and the period for determining the list of goals and setting tasks.

Swot analysis matrix

During the analysis process, specially developed templates are used, which are tables called SWOT matrices. Which one will be used is a purely individual choice. It is worth noting that the results, regardless of the selected template, are completely identical.

Any matrix swot analysis filled out according to a specific pattern. The cells describing the strengths of the enterprise are filled in first. Next we move on to its weaknesses. These two columns help describe the company's microenvironment.

To display the macro environment, you will need to fill in the remaining two columns. In one of them, opportunities should be written down, that is, those probable benefits that the company will be able to obtain in the current market conditions if no significant changes occur. And the last column of the matrix records threats - those factors that can hinder development strengths company and use of the opportunities provided.

Microenvironment

Strengths include those areas where a company has significantly succeeded and what sets it apart from its competitors. Here you should also describe your competitive advantages, but be objective. These cannot be simply unfounded allegations. They must be confirmed by certain indicators.

These advantages may well include:

unique company resources;
personnel with a high qualification level;
quality products;
brand popularity.

A company's weaknesses include factors that place it at a disadvantage compared to potential competitors. As an example of the weakness of an enterprise, one can point out a limited range of goods produced or services provided, not very good reputation, little or no funding high level client service.

Macro environment

As you remember, the macro environment in SWOT analysis is presented in the form of probable opportunities or potential threats.

Opportunities include the most favorable circumstances, through which the company receives additional advantages. It is opportunities that contribute to the development of the strengths of an enterprise.

Threats are probable events, in the event of which the enterprise may find itself in not entirely favorable conditions for further development. Examples of such events may be the emergence of new competing companies on the market, increases in tax rates, and changes in demand from buyers.

Additional materials

The swot analysis matrix for more complete and truthful filling will require the presence of additional information. Let's consider this point in more detail. All available data will be required in the following categories:

Management

All information related to the organization of the work of the entire company is collected here. These are the qualifications of the enterprise’s employees, connections that determine the level of interaction between all departments, etc.

Production

In this category, an assessment is made of production capacity, the quality of existing equipment, and the degree of its wear and tear. The quality of manufactured goods, the availability of patent or licensing documentation, if required, and the cost of manufactured goods are also considered. Additionally, the reliability of partners acting as suppliers, level of service, etc. are assessed.

Finance.

This is the most important category that requires detailed consideration. It is here that the clearest gradation of the strengths and weaknesses of the business in question is observed. This is a cost production process, availability and speed of turnover of cash capital, stability of the enterprise in financially and its profitability.

Innovation.

How often are customers provided with an updated list of products? What is the level of quality and how quickly does the return on capital investments occur? This subparagraph must contain answers to all questions asked.

Marketing

consumer reactions to manufactured goods;
awareness of your brand;
the range of products presented by the enterprise;
pricing policy;
the effectiveness of advertising campaigns;
additional services offered by the company.

Rules for performing SWOT analysis

In order to avoid possible mistakes in practice and get the maximum benefit from the marketing research, strict adherence to several rules is required.

As much as possible, try to narrow the scope of the activity in which the analysis will be carried out. If you perform this procedure simultaneously for all activities of the enterprise, the data obtained will be too general and absolutely useless from a practical point of view. Focusing the analytical process on a company's position in a specific market segment will help obtain more specific data.

As you complete the matrix columns in the macro and micro environments, be careful when drawing conclusions regarding the strengths/weaknesses and opportunities/threats of certain factors. Weak or strong qualities are represented by the internal characteristics of the company. Whereas the second pair characterize the situation in a given time period, and cannot be regulated by management.

High-quality execution analysis is possible only when all the data were completely objective. This strategic analysis should be carried out on the basis of the diverse information presented. The research cannot be entrusted to one specialist, since the information received may well be distorted by his personal subjective perception. In this marketing research it is necessary to take into account the point of view of each functional unit of the enterprise. All data entered into the SWOT matrix must be confirmed by existing facts or the results of previously conducted research activities.

The use of lengthy formulations or the possibility of its double interpretation is completely unacceptable. The more specifically a factor is formulated, the more clear its impact on the company’s activities as a whole will be in the future. And accordingly, the results obtained after completion of the analysis will have the greatest value.

Weaknesses of SWOT Analysis

SWOT analysis is just a simple tool with which information is structured. This marketing procedure does not provide any specific answers or clear recommendations. It only helps to more adequately assess the main factors and predict the occurrence of certain events with a certain degree of probability. Formulating any recommendations based on the data obtained - this procedure is already within the competence of the analyst.

In addition, the apparent simplicity of this strategic analysis very deceptive. The veracity of the result, and accordingly the development of further transformations, is highly dependent on the completeness and quality of the information provided. To truly obtain the most realistic data, you will either need the participation of an expert who can assess the current state and likely path for further development of the market, or you will need to carry out very painstaking work in collecting and then analyzing the information received in order to achieve this understanding.

Errors that may be made when filling out a matrix table are not detected during the analysis process. Therefore, the addition of an extra factor or, on the contrary, the loss of an important one or other inaccuracies lead to an erroneous conclusion, and therefore incorrect development of a further strategy.

SWOT Analysis Example

The given analysis example is for demonstration purposes only. Here is the entire sequence of actions that will help you perform a SWOT analysis.

Determination of strengths/weaknesses (sides)

First of all, analyze everything possible options. Each of the areas must contain at least 3 parameters that helped in assessing the competitive capabilities of the business.

For example, let’s take a direction like “ appearance goods". To analyze it you will need to answer questions such as:

to what extent is the appearance of the packaging better/worse than that of a competing company;
the convenience of packaging is better/worse compared to a competing company;
how much better/worse is the packaging design compared to a competing company, etc.

We check the importance of identified strengths/weaknesses

Not the entire list from the first paragraph will be needed to fill out the matrix. Now you should eliminate the non-essential items. To select the right parameters, you should evaluate the impact of each in terms of satisfaction potential clients, as well as the profit received.

The results of such a check will help eliminate parameters that play a minor role. The final microenvironment rating will be fully prepared.

Identifying likely growth paths

At this stage, you will need to write potential options that can . Two questions will help with this:

how a company can increase its sales level;
What are the possibilities for reducing production costs?

Make a comprehensive list of opportunities that will help your business grow. As an example, the following options can be given:

new sales territory;
expansion of the range;
influx of new consumers, etc.

Next, an assessment is made and opportunities that do not have a decisive impact on profits and customer satisfaction are eliminated. Having fully analyzed the entire list received, we cross out opportunities that do not have a strong impact on the profit received and customer satisfaction.

Identifying Potential Threats

This section should list potential threat options. For example, why customers may refuse to purchase a company’s product:

changing your usual lifestyle;
decrease in the level of income of the population;
changed requirements for product quality, etc.

Then we exclude threats that do not threaten the development of the enterprise over the next 5 years.

Filling out the matrix

Now that all the data has been received, fill in standard template. In this case, the rating of all indicators is necessarily preserved. Next, based on the SWOT information, recommendations are made for the further development of the enterprise.

You can find detailed swot analysis, strategy and implementation methods using the example of a specific enterprise in this article:

You can also watch the compilation of swot analysis on video.

SWOT analysis (translation from English swot analysis)- one of the most effective tools in strategic management. The essence of swot analysis is to analyze the company’s internal and external factors, assess the risks and competitiveness of the product in the industry.

Definition of SWOT Analysis

SWOT analysis method - universal technique strategic management. The object of SWOT analysis can be any product, company, store, factory, country, educational institution and even a person. There are the following types of SWOT analysis:

SWOT analysis of the activities of a company or manufacturing enterprise
SWOT analysis of the activities of a government or non-profit organization
SWOT analysis of the activities of an educational institution
SWOT analysis of a specific territory: country, region, district or city
SWOT analysis of a separate project or department
SWOT analysis of a specific market or industry
SWOT analysis of the competitiveness of a brand, product, product or service
SWOT personality analysis

Companies often conduct a SWOT analysis not only of their products, but also of competitors’ products, since this tool very clearly systematizes all information about the internal and external environment of any organization.

The advantages of SWOT analysis are that it allows a fairly simple, correct look at the position of a company, product or service in the industry, and therefore is the most popular tool in risk management and management decision making.

The result of a SWOT analysis of an enterprise is an action plan indicating deadlines, priority of implementation and the necessary resources for implementation.

Frequency of SWOT analysis. It is recommended to conduct a SWOT analysis at least once a year as part of strategic planning and in the formation of budgets. SWOT analysis is very often the first business analysis step when drawing up a marketing plan.

Are you doing a SWOT analysis for the first time?

Use ours, which will answer all your questions and allow you to create a SWOT analysis in less than an hour.

Video course for beginners

Four detailed video lectures on the SWOT analysis methodology will help you create your own analysis from scratch, even if this is your first time doing it.

Part one: SWOT analysis, determining the strengths and weaknesses of a product

Elements of SWOT analysis

Explanation of SWOT analysis abbreviations: Strengths, Weaknesses, Opportunities, T=Threats.

S=Strengths

Strengths of a product or service. Such internal characteristics of the company that provide a competitive advantage in the market or a more advantageous position in comparison with competitors, in other words, those areas in which the company’s product feels better and more stable than competitors.

The importance of strengths for a company in strategic planning: due to strengths, a company can increase sales, profits and market share; strengths ensure an advantageous position of a product or service in comparison with competitors. Strengths must be constantly strengthened, improved, and used in communication with market consumers.

W=Weaknesses

Weaknesses or shortcomings of a product or service. Such internal characteristics of the company that impede business growth, prevent the product from leading the market, and are uncompetitive in the market.

The importance of weaknesses for a company in strategic planning: a company’s weaknesses hinder the growth of sales and profits, pulling the company back. Due to weaknesses, a company may lose market share in the long term and lose competitiveness. It is necessary to monitor areas in which the company is not strong enough, improve them, and develop special programs to minimize the risks of the influence of weaknesses on the company’s efficiency.

O=Opportunities

Company capabilities are favorable factors external environment, which may influence business growth in the future. Importance of market opportunity for a company in strategic planning: Market opportunity represents the sources of business growth. Opportunities must be analyzed, assessed and an action plan developed to exploit them using the company's strengths.

T=Threats

Company threats are negative external environmental factors that may weaken the company's competitiveness in the market in the future and lead to decreased sales and loss of market share. The significance of market threats for a company in strategic planning: threats mean possible risks for the company in the future. Each threat must be assessed in terms of its likelihood of occurrence. short term, from the point of view of possible losses for the company. For every threat, solutions must be proposed to minimize them.

Drawing up a SWOT analysis

It is advisable to adhere to the following sequence of actions when conducting a SWOT analysis:

This SWOT analysis technique allows you to assess the risks and opportunities of the company as fully and in detail as possible, plan a working marketing strategy product:

An analysis of the surrounding market environment of a product or service is carried out in the context of external and internal factors.
Based on the analysis, business strengths, business weaknesses, threats and market opportunities for business are formed.
The obtained parameters are entered into the SWOT matrix for ease of analysis
Based on the SWOT matrix, conclusions are drawn about the necessary actions, indicating implementation priorities and deadlines.

In the process of conducting a SWOT analysis, involve people interested in making a decision, experts in various issues. An outside opinion will allow you to create a more objective analysis.

Do you know the theory and just need practice?

Read our ready-made template in Excel.

Standard view of a SWOT analysis table

In the SWOT analysis table, it is advisable to indicate factors in order of priority.

Accordingly, the question “how to do a SWOT analysis” is of particular importance in the life of an entrepreneur. Today we will talk about how to do a SWOT analysis. Or rather, let's develop one step by step instructions- a questionnaire, after which the same question () will be completely closed for you.

First, let's look at what a SWOT analysis is (I apologize in advance to those for whom this is unnecessary). SWOT analysis is a tool for planning and comparing four business elements. These elements are: Strengths, Weaknesses, Opportunities, and Threats. A correctly done SWOT analysis gives an entrepreneur a huge amount useful information required for adoption the right business decisions.

Learning to do swot analysis

SWOT analysis - 4-step instructions

For greater clarity, we will divide the SWOT analysis process into steps, each of which is represented by several questions. Answering these questions is, in essence, the process of conducting a SWOT analysis. So.

Step 1 — Scanning the business environment

In this step, by looking at our business environment, we must identify the factors that influence or may influence our business. All factors can be divided into internal and external. To determine these factors, answer the following questions:

1. What legal factors (laws and other regulations) affect (or may affect) my business?

2. What environmental factors affect (or could affect) my business?

3. What political factors affect (or may affect) my business?

4. What economic factors affect (or may affect) my business?

5. What geographic factors affect (or could affect) my business?

6. What social factors influence (or may influence) my business?

7. What technological factors affect (or may affect) my business?

8. What cultural factors influence (or may influence) my business?

9. What market factors influence (or may influence) my business?

The answers to the first 9 questions give you information about external factors, i.e., those impacts on your business that exist in your environment, regardless of the existence of your business. All of these questions, one way or another, are worth asking yourself in order to fully understand what could have any impact on your business. Of course, different factors will have different effects in different business areas, but this is exactly what you will understand by answering these questions.

10. Does (or can it influence) the competition factor affect my business?

11. Does (or can it influence) the management and business management factor affect my business?

12. Does the chosen business strategy factor (or can it influence) my business?

13. Does the business structure factor affect (or can it affect) my business?

14. Does the employee factor affect (or can it affect) my business?

15. Does the factor of my business goals influence (or can influence) my business?

16. Does (or can it influence) the leadership factor affect my business?

17. Does the operational management factor affect (or can it affect) my business?

18. Does the technology factor in business affect (or can it affect) my business?

Answers to questions 10 to 18 will give you information about the overall impact of your business's entry into the marketplace. The list may not be exhaustive; a lot depends on the field of activity, but these are the main points.

And so, having answered the above questions, you will have an almost complete set of factors on which your business depends to one degree or another. Next, you should analyze them and draw the right conclusions for yourself. In this regard, we move on to the next step of our instructions on how to do a SWOT analysis.

Step 2. Analysis of the business environment

In this step of the SWOT analysis, we must analyze in more detail all the factors listed above and understand what they actually represent for us and our business. Let's do this, as you guessed, in a few questions. Here they are:

19. Which legal factors could be a threat to our business and which could be an opportunity?

20. Which political factors could be a threat to our business and which could be an opportunity?

Short story SWOT
Why and when to conduct a SWOT analysis
S.W.O.T. Detailed analysis of components
Actions based on the results of the SWOT analysis
Examples of successful and unsuccessful SWOT analysis
From SWOT to TOWS? How to deploy the algorithm and achieve the best results
SWOT Templates

What is SWOT?

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats.

SWOT analysis is a methodological tool designed to help companies and their employees optimize productivity, increase competitiveness, maximize potential and minimize risks. The SWOT model helps you make better decisions - both large and small. It allows you to evaluate the effectiveness of actions - from the launch of a new product or service to a merger with another organization or acquisition subsidiary. SWOT is a method that, when used correctly, gives only positive results.

The Fundamental Guide to SWOT Analysis was designed, written and designed by Justin Homer and Jackson Hille.

Justin Homer lectures at the University of California, Berkeley and will soon publish two books.

Jackson Hille is one of the FormSwift partners and a recipient of a Certificate of Excellence in American Studies from the University of California at Berkeley.

The guide contains all the information a SWOT specialist needs. It describes examples of the use of SWOT by prominent companies (for example, Dreamworks and Uber), carefully examining all the components and applications of the analysis. Free templates are provided at the end. The guide will be useful to everyone, including leaders of creative startups and entertainment companies, strategic planners in non-profit and government organizations, and private entrepreneurs who sell real estate or restaurants.

Who is this guide intended for?

SWOT is a method that can be used for any business goal, large or small. Whether you run a Fortune 500 company and are trying to determine the value of a special offer or are evaluating your position to chart a personal trajectory, the guide will serve you well.

Why do you need a manual?

Your company is at risk! You risk freezing in place! Lack of movement can destroy any business, and SWOT analysis is an effective antidote. This guide reveals all its intricacies.

It's written accessible language and contains short but effective examples. More importantly, it is backed by extensive research on the use of SWOT, the results of which have been published in leading business magazines.

How to use the guide?

This guide looks at the SWOT method from a variety of perspectives that can be understood by people with varying degrees of awareness.

If you are just starting out with SWOT, we recommend that you read the entire text from beginning to end to better understand the history of the method and its scope.

If you are already familiar with SWOT, you can review the basics or skip to the section you need (for example, about using the method in a certain type of organization). You may find our templates useful. Use the guide as you wish!

Summary and examples of using SWOT

In 1960, several American corporations launched a project at Stanford University to develop an improved method of strategic planning. This is how SWOT was born.

It is suitable for:

rethinking the company’s position in the market (Weaknesses, Threats - Disadvantages and Risks from competitors);
determining the company's strengths (Strengths - Advantages);
searching for new areas of development (Opportunities - Opportunities).

It's all SWOT!

Although "SWOT was originally developed for business needs," "it can be used for the health and development of the community as a whole, and even for personal needs."

Below are examples of the use of SWOT analysis in a company that provides taxi services using mobile application.

Uber + Lyft

SWOT Example

Strengths

Using a special application to find drivers and clients and a cashless payment system greatly simplifies the work process.
Lack of staff and dispatchers
reduces costs.
Drivers use personal cars, so the company has access to a huge fleet Vehicle that do not require maintenance.
Drivers have full control over their schedule.

Weaknesses

The business model is easy to copy.
Using GPS to track the location of drivers and customers creates privacy risks.
The flow of customers is unpredictable and changes quickly.
The company does not establish relationships with drivers, so the level of loyalty is extremely low.

Opportunity

In the next example, we will look at the birth of companies providing taxi services using mobile applications.

Let's imagine how the emergence of Uber and Lyft affected the activities of companies providing services in the traditional way. Usage latest technologies allowed them to easily penetrate the market.

They can expand and capture new areas (cities) or provide Additional services on transportation (for example, run school buses).

Risks

The use of mobile apps has not only opened up new opportunities for Uber and Lyft, but also created serious risks for existing companies that have not mastered the latest technologies.

SWOT is often mistakenly used to justify existing practices. If you are conducting an analysis to find areas for development, you need to clearly identify any shortcomings.

Comments on individual companies

Uber services can only be used in some metropolitan areas, so the next stage of development may be to cover smaller cities and suburbs. However, the main threat to Uber comes from numerous complaints and proposals to legally prohibit the company's activities.

Dreamworks

DreamWorks has achieved a dominant position in the 3D animation industry due to two main advantages - its vast reserves (for example, the Shrek franchise) and its attractive working environment, suitable for creative workers.

Logan decided that a busy training schedule and a trip to an international tournament could provide the team with new opportunities to gain experience, and the youth and potential injuries of the players posed significant risks.

Restaurant: By adding online food ordering and delivery, a business could gain new opportunities, while the opening of new restaurants and changes in food costs (for example, higher prices for fish) would pose a serious threat to it.

Construction firm: In terms of new opportunities, the firm could study the city's plans to expand the system public transport and explore how this expansion would impact the scale of private and corporate construction.

And here we come back to the basic tenet of SWOT: analysis is only useful when you compare yourself to your competitors.

Uber + Lyft

SWOT Example

Let's go back to the Uber and Lyft example. The services themselves arose under the pressure of mobile technologies on traditional companies who provided taxi services. If any of them had recognized this Risk earlier, they would have realized that a mobile offering could provide customers with the ability to get from one point to another efficiently and quickly.

By turning a Risk into an Opportunity, a company could evaluate its Weaknesses in terms of an existing Risk (in this case, lack of investment in technology or underdeveloped infrastructure for a mobile application), and then create strategic plan to eliminate the Disadvantages and use the Advantages (in this case, the experience of full-time drivers, knowledge of routes, etc.) to get ahead of competitors.

1. Brief history of SWOT

SWOT analysis was the product of years of research conducted by Stanford University in the 1960s and 1970s. By the late 1950s, many American companies were frustrated by the lack of results from their investments in strategic planning, so in 1960 some of them launched a project to develop new methods. This is how SWOT was born.

2. SWOT analysis

When to do a SWOT analysis

When should you conduct a SWOT analysis? SWOT analysis is beneficial in countless ways.

Do you want to know how effective a new initiative, product or acquisition is?
Do you need a solution to a specific business problem?
Do you want to evaluate an existing and ongoing strategy?
Do you have extra funds that need to be invested profitably?
Are you a non-profit or state organization, received a large grant or donation and you don't know how to spend the money?
Do you have new competitors? Do you need to evaluate a potential merger with another organization?
Do you want to more accurately formulate your mission or social significance?

If you answered yes to at least one question, a SWOT analysis will definitely help you!

Ultimately, it will be useful in any situation that requires assessing the current state of affairs in the market (Disadvantages and Risks), identifying strengths (Advantages) and directions for development (Opportunities).

Why do a SWOT analysis?

Why is SWOT needed? SWOT analysis allows a company to accurately assess its position in its industry. Members working group in Health Promotion and Community Development from the University of Kansas point out that “having situational information facilitates effective strategic planning and allows for better decision making.”

“Simple and applicable in any context,” a SWOT analysis provides similar information so its results can be used to create a strategy that takes into account internal strengths and external opportunities and focuses on correcting (internal) weaknesses and eliminating (external) risks. Moreover, although “SWOT was originally developed for business needs,” “it can be used for the health and development of the community as a whole, and even for personal needs.”

3. S.W.O.T. Detailed analysis of components

Having determined the subject of analysis, you can begin to analyze all components. SWOT consists of four components - Strengths, Weaknesses, Opportunities and Risks. All of them are divided into two categories - external and internal. Internal components include Advantages and Disadvantages, external components include Opportunities and Risks.

Domestic		External
Strengths	Weaknesses	Opportunities	Risks

Strengths

Once you've identified your main research question (for example, "Should I add Product X to the new line?"), try to articulate the benefits. Any organization must be stable and reliable. Charlie Ioannou defines advantages as “the resources and productive capabilities that can be used to obtain competitive advantage(Ioannue, SWOT Analysis - An Easy to Understand Guide, 47-49).

This definition makes you think about the most important aspect of evaluating Benefits, which is comparing yourself to your competitors. In other words, it is necessary to note the unique qualities of your company (for example, long duration of operation, proven brand, low production costs, high quality of services, strong presence on the Internet, etc.) These will be your Advantages.

Weaknesses

After this, it is necessary to identify existing shortcomings. Be honest with yourself. On the one hand, disadvantages are the absence of advantages. So, if one aspect of your business isn't a strength, it's probably a weakness. Cash flow, brand awareness, marketing budget, sales system, age of the company - weaknesses can be found in all of these. The main goal is to turn weaknesses into strengths, but this requires honesty that the organization needs improvement.

Having considered the internal components (Advantages and Disadvantages), let's move on to the external ones (Opportunities and Risks). Opportunities and Risks interact with each other in the same way as Advantages and Disadvantages. They have similar (external) dynamics that make it possible to evaluate them.

Opportunities

Opportunities are prospects for growth, greater profits and market share. Again, the evaluation is made in comparison with competitors. What capabilities differentiate your company from competitors? What capabilities would allow you to offer the same products or services, but more High Quality or at a lower price? What customer needs are you still not meeting?

Technology is external factor, which always presents new opportunities and, as stated below, creates new risks. What technological innovations could reduce the cost of goods or services, speed up production or distribution, or improve the customer experience?

Remember that opportunities always involve action. If you don't act, your competitors will.

Risks

Finally, determine which aspects of your business are at risk. Are competitors developing similar products? Are they poaching yours? best employees? Such actions threaten your business.

Harvard Business Reviews defines Risks as “possible events that you cannot control, and if they happen, you must have a plan to mitigate the consequences.”

Do you know latest changes in legislation? Didn't you come out recently? new law increasing your costs? What about taxes? All of this can be considered a Risk.

Finally, technological innovations that provide new opportunities may create additional risks.

For example, you may be sued for insurance obligations or demand to legally prohibit the company's activities.

4. Actions based on the results of the SWOT analysis

Choosing an action plan based on the results of the analysis is a complex process that must take into account the specifics of the company. However, there are general concepts about what approach should be taken. Here he is:

Enjoy the Benefits
Eliminate Disadvantages
Identify Risks
Invest in Opportunities

In addition, it must be remembered that the main purpose of a SWOT analysis is to assess the current state of affairs. As researchers from the University of Kansas write, it is necessary to look for new boundaries, not excuses. SWOT is often mistakenly used to justify existing practices. If you are conducting an analysis to find areas for development, you need to clearly identify any shortcomings.

5. Examples of SWOT analysis for companies from different industries

Tech startup

Leadership, Management, Company Management

If you think that SWOT analysis is a boring theory from a marketing course, you are mistaken! Where do you start to analyze the situation in your business, what do you do first when you don’t know what to do or what to do correctly, how you weigh everything "Behind" And "Against"? Advice from friends and colleagues, find a solution on the Internet, act on it and boom? This is not enough, you need a real tool that will help you identify the strengths and weaknesses of the project and make the right decisions.

SWOT analysis will help you in this matter. You can not only weigh risks with its help, but also build strategies, do audits, and analyze complex decisions. In this article we will take a detailed look at the capabilities of this tool using an example and learn how to use it in practice.

A little history

SWOT analysis was first introduced to the world in 1963 at Harvard by academic Kenneth Richmond Andrews. At the conference, this method of strategic planning was introduced into the arsenal for the first time modern business, which is used by all marketers, analysts and business owners today. It is a mandatory stage of strategic planning and an excellent tool for auditing a company.

This method of analysis allows you to look at the business as a whole, at a separate cell of the company, business process or product from the position of weaknesses and strengths, advantages and threats, both internal and external. And also, many people use it in Everyday life. Let's learn how to use it.

S.W.O.T. is an abbreviation for in English four words:

S (Strengths)– strengths. When describing the strengths of the object being analyzed, you should describe more of its own internal advantages. This is easy to do if you perform this task as a team and using the Internet. The more broadly and objectively you look at the subject of analysis (company, process, product, etc.), the more likely it is that a SWOT analysis will produce effective conclusions, so do not assign this task only to marketers or managers.

W (Weaknesses)- flaws. A similar situation with the shortcomings, remember all the disadvantages, all the unpleasant moments associated with the subject of analysis and write them down. Everything that weakens it and makes it unattractive, burdens it - fix everything. Objectively and only regarding the analyzed object.

O (Opportunities)- possibilities. Describe what opportunities the external environment gives you? What favorable external factors accompany development help your subject of analysis develop?

T (Threats)– threats. Record facts that negatively affect the development or promotion of your object of analysis from the outside. In most cases, it addresses the competitive environment and changes foreign market that may threaten you.

SWOT Analysis Template

The analysis is performed by compiling a table or 2 by 2 matrix in which evaluation criteria are entered in each cell, for example:

You can copy this example template into MS Word and print it for work.

There is an opinion that SWOT analysis is a superficial, inaccurate analysis tool based on the subjective opinion of one person. However, if you conduct an audit by a team of specialists from different fields, you can completely achieve an objective picture of the situation.

SWOT analysis using the example of a company

Now we will fill out the SWOT template or matrix with data from one company X, which is engaged in the auto business (selling new cars, spare parts, and repair services).

Let's start from the upper left corner with the strengths of the company that it has at the moment in time, then fill in the upper right field - we enter the internal existing shortcomings / weaknesses of the company there. In the lower left square we write the opportunities of the external environment that can be realized in the future, and in the right square we write threats and risks that are terrible for the business as a whole.

When you fill out the SWOT analysis matrix, analyze the upper squares from the side of the manager and from the side of your clients, and the bottom squares from the side of the company's management.

As we see in the green square with a plus, you need to record the company's resources. Personnel, equipment, software, finance, uniqueness, business processes, etc.
In the beige sector, we fix shortcomings within the company. Answer these questions:

“What’s stopping you from selling more?”
“What don’t you have compared to your competitors?”
“Who is hindering development or does not meet the assigned competencies?”
“What or what resource is missing to solve the problem?”
“What’s not to like about your customers?”

3. The blue sector should reveal the opportunities that are provided to your company from the outside. Answer these questions:

“What are the prospects for the development of your business line in the modern market?”
“Is there an increase in demand for your product/services? Are the needs of your target audience growing?”
“What are the trends regarding laws in your area of business?”
"Are there free niches, where could your company make additional profit?
“Is there an opportunity to expand your product range?”
“Who could help you develop your business? How?"

4. The most important threat sector. It is this that is a priority and will provide us with material for developing specific activities. To fill in the red sector you need to write answers to the questions:

“What are my worst fears?”
“I would have done ....., but if not .... »
“The company will cease to exist if...”
“What actions of competitors will affect the development of the company?”
“What changes in policy and legislation are undesirable for business?”

You must answer these questions with a team consisting of managers and performers.

We get the result

What to do next with these records? The next step is to rank your posts by importance, weight and significance. In the example above, each entry is located under its own importance number - the first is the most important. Determine the three most important positions in the “Threats” block; first of all, you need to develop a strategic action plan for the company to eliminate or prepare for these threats.

Under the first point is: “Loss of dealership due to failure to meet sales plan.” The sales plan is internal factor, and the fate of the company is still influenced by the importer, who analyzes the share of sales in the region and can deprive you of the right to sell cars of a certain brand. It turns out that this is an external factor that is associated with internal and external problems. Solution: draw up a SWOT analysis of the sales department, it will show the problems that do not allow you to sell enough. Objective #1 is clear.

Further. “Dependence of income on exchange rate fluctuations”. If your internal accounting is kept in foreign currency, you need to develop measures to reduce the impact of this factor on profitability, otherwise an increase in the exchange rate will destroy your margin (markup). For example: sell goods without coming to the warehouse, increase the turnover of goods (sell quickly), create an insurance fund in case of fluctuations, create an adaptive price list that will be automatically converted into national currency at the current exchange rate on the day of payment, etc.

Further. “Dependence on the policies and decisions of the importer”. Designate an employee who will monitor changes and sales rules regulated by the importer. Let him deal only with communication with the importing company. Find a contact person at the importing company who can help with advice and establish contact with him for long-term cooperation.

This data is entered into a table similar to this:

About the pros and cons of the technique

Advantage this method is the ability to obtain a general spatial picture of the state of the object of analysis, which will help make the right decision. SWOT analysis can be used in various fields and is accessible to everyone.

Disadvantage is the lack of accurate quantitative data that can show the dynamics of changes and the subjective factor in compilation.

Summary

This is how you can understand: what to do next, where to move, what is stopping you. A similar analysis can be carried out separately for each department, which will help identify more problems and, as a result, develop a strategy for further development or solving a problem. The effectiveness of a SWOT analysis depends on the objectivity of the people who compiled it, as well as on the number of questions (coverage of the problem or condition). The more questions, the deeper you will touch on the problem, the more auditors, the more questions and subtleties you will be able to work out.

As you can see, SWOT analysis is a fairly powerful marketing tool that allows you to create a competent business development strategy and correct existing shortcomings.