What is a SWOT analysis?
A SWOT analysis analysis is an effective method to understand and evaluate one’s strengths, weaknesses, opportunities, and threats when faced with a decision. What makes a SWOT particularly powerful is that, with a bit of thought, it can help uncover opportunities that you are well-positioned to take advantage of. By understanding your strengths and weaknesses, you can manage and eliminate potential threats.
To complete a SWOT analysis, start by listing your strengths. These could be skills, resources, or other advantages that set you apart. Next, identify your weaknesses, which are areas where you or your organization may lack certain skills or resources. Then, look for opportunities—external factors that you can capitalize on for growth or improvement. Finally, consider the threats, which are external challenges that could hinder your progress or success.
By systematically analyzing these four areas, you can create a strategic plan that leverages your strengths, addresses your weaknesses, seizes opportunities, and mitigates threats. This thorough understanding can guide decision-making, enhance strategic planning, and ultimately contribute to achieving your goals more effectively
How do I do a SWOT analysis?
First conceptualized by Albert Humphrey in the 60s, the SWOT analysis is a highly effective tool for understanding strengths and weaknesses, whether they pertain to an individual or an organization.
It is crucial to ask challenging questions, even if they are uncomfortable or confronting. The traits of a successful enterprise remain consistent, whether you’re aiming to revolutionize the world with autonomous technology or managing a small venture in the local district.
Here are some examples of questions you can ask to help you complete a SWOT analysis.
Strengths
- What advantages does your business have?
- What do you do better than anyone else?
- What unique resources can you draw upon that others cannot?
- What do people see as your strengths?
- What is your organisation’s unique selling proposition?
- What are the benefits of this strategy or this plan?
- Why would a client choose you over your competitors?
Weaknesses
- What could you improve on?
- What should you avoid?
- What are people in your market or your customers likely see as your weakness(es)?
- What factors cause you to lose sales?
- What factors cause you to lose customers?
Opportunities
- What opportunities can you spot?
- What areas of the market is unserviced or under-serviced?
- How can you help fix a problem the market/industry / a client has?
- What changes are there in technology?
- What local events are there that you might be able to present at?
Threats
- What obstacles do you face?
- What are your competitors doing?
- Are there any quality standards or specifications for your job, products or services?
- Are there any changes occurring within your industry – legislative or technological advancements or consumer sentiment?
- Do you have any bad debt or cash-flow problems?
- Could any of your weaknesses seriously threaten you?
Example of a SWOT analysis
Strengths
- Qualified workers
- Constantly meet regulatory requirements without any haste
- Able to respond very quickly
- Can change direction very quickly
- Low overheads
Weaknesses
- Avoid negative conversations in the workplace
- Has little to no market presence
- No funds for marketing
- Vulnerable to vital staff being sick or leaving the organisation
- understanding of Budgets and industry
Opportunities
- More technically capable and cheaper software out on the market
- Local government wants to encourage small businesses
- Competitors slow to adopt new technologies
- Industry expanding with customers now more educated on their options
- Workforce requirements
Threats
- Favouritism for staff with a particular manager
- A small change in the focus of a large competitor might wipe out any market position the business has
- The downturn in the market
- Burnout from over working