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SWOT Analysis: Do you know the strengths and weaknesses of your organization?

To be successful, the company must understand its strengths and weaknesses in its environment. The SWOT analysis is one of the most common tools used by companies to analyze their current situation and position themselves for the future.

 

What is a SWOT analysis?

 

The acronym SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

 

The SWOT analysis allows you to see how you stand out in the market, how you can grow your business and where your vulnerabilities are. This process takes into account the internal and external factors that your business must deal with.

 

Strengths and weaknesses are often internal to your organization, while opportunities and threats are usually related to external factors. For this reason, SWOT analysis is sometimes called internal-external (IE) analysis and the SWOT matrix, IE matrix.

What are the benefits of SWOT analysis?

This analysis is particularly effective because, with a little thought, it can make you discover opportunities that you are able to seize. By understanding your business weaknesses, you can manage and eliminate threats that might otherwise surprise you.

 

By using the SWOT framework to examine your business and your competitors, you can build a strategy that helps you stand out and be more competitive in your market.

How to perform a SWOT analysis?

 

A SWOT analysis is usually done by collecting feedback from the team during a workshop. These workshops are often facilitated by a strategic planning consultant. It may be useful to gather the following information before conducting a SWOT analysis:

Outside your business:

  • What are the market trends in your industry?
  • What is your market share?
  • Who are your main competitors?
  • How can you stand out in the market?
  • How do customers perceive you?
  • What pitfalls and dangers await you?

 

Inside your business:

 

  • Sales and Marketing Performance
  • Financial performance and trends
  • Efficiency of your systems and processes
  • Key internal personnel, skills and governance structure
  • Culture and strategy of your company
  • Your mission, your vision and your values

 

With this information, you will be able to assess the internal strengths and weaknesses of your business, after which you can focus on external factors that could impact your business.

 

Strengths – List your company’s internal strengths. These are the competitive advantages, abilities, expertise, experience, skills and other internal factors that cannot be easily copied and which allow your company to better position itself in the market.

 

Here are some examples:

 

  1. Solid funding
  2. Prestigious brand
  3. Important intellectual property
  4. Superior technology
  5. State-of-the-art equipment and machinery
  6. Well-trained sales team
  7. Low staff turnover rate
  8. Management Expertise
  9. Operational efficiency
  10. High customer retention rate
  11. Good relations with suppliers

 

Examine your strengths from an internal perspective, and from the perspective of your customers and people in your market.

 

Also, if you’re having trouble pinpointing your strengths, try writing a list of your organization’s characteristics. Some of them will possibly be strengths.

 

When looking at your strengths, consider them relative to your competitors. For example, if all your competitors offer high-quality products, a high-quality production process is not a strength in your organization’s market, but a necessity.

 

Weaknesses– These are the factors that reduce your company’s ability to achieve its goals.

 

Here are some examples:

  • Unreliable Suppliers
  • Obsolete equipment or machinery
  • Insufficient marketing efforts
  • Lack of funding
  • Management weaknesses
  • Lack of expertise

 

 

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