How to Perform SWOT Analysis?
Is it not the dream of every corporation or business to unravel its true potential; to achieve its goals in the most favourable way? In order to accomplish this dream, you need certain strategies. SWOT analysis is one such strategy to determine the Strengths, Weaknesses, Opportunities and Threats to your business. It also helps in establishing how far you can go as a business. The strengths and the weaknesses are largely considered as the internal factors as they function within the organization. The opportunities and the threats, however, are the factors that affect an organization externally.
This unique system is said to be first used in the 1960s by some American guy, Albert Humphrey (He was quite a famous business theorist and strategic planner of the twentieth century, though!). The fact that it is still in use only authenticates the effectiveness of this system. The best part is that it not only facilitates the growth of business generally but can also be utilized to reach a specific target. Here is a complete guide on how to optimally Perform SWOT Analysis for your business:
Make a list
It is basically a 2×2 matrix. The first thing you need to do is make a matrix and start noting down the several aspects of your business under the four categories listed above.
Identify your strengths
It is always nice to know your strengths, right? Brainstorm the qualities of your corporation that give you an edge over the competitors. Your strengths can include anything from hardworking employees, strong brand identity to massive land property etc. But how do you make a genuine list free of complacency? Take small surveys every now and then to see where you are doing great. Take feedback from your consumers and ask them what they liked the best about your services. Hold meetings with your colleagues to discuss such matters.
Analyze the flaws
A similar tactic can be used while identifying the weaknesses as well but with a slight difference. The term “weaknesses” must not be taken in a negative connotation while performing the SWOT analysis. They are the things that need to be worked upon; they tell you where you are lagging behind. Accepting the flaws can be pretty challenging. One tends to overlook them or ignore them altogether as it hurts one’s sentiments. See things from a broader perspective- assume the role of a customer, a staff member and an executive to Perform SWOT Analysis.
Look out for the opportunities
There is a saying that goes, “Opportunity does not knock, it presents itself when you beat down the door.” This is especially accurate in the business. Always keep yourself updated with the changes that are happening in the industry. Are there any special requirements in terms of technology? Is the government changing the policies that affect your market? Has your area undergone socio-political changes lately? First, you have to be aware enough to identify these opportunities. Then, you have to be quick in grabbing these opportunities to expand as a business.
Beware of the threats
Natural calamities, fluctuation in the market prices, reforms in legislation, shoot up in the sales of your rivals, etc. can be the major threats. While mentioning the potential threats, bear in mind the long-term effects of all the factors that are not under your control. The obstacles related to finance such as debt or loans can hinder the progress of your business. Also, make sure that your business has a good reputation among the media people.
Tip: To Perform SWOT Analysis properly, you must give equal importance to all four factors.
