What is a SWOT Analysis?
Around the world, businesses are conducting a SWOT analysis that when successfully performed boost efficiency, identify problem areas, and find new opportunities for growth. While businesses have been doing self-analysis of their operations for centuries, SWOT provides a new way of looking at how they function.
What is SWOT?
An acronym that stands for Strengths, Weaknesses, Opportunities, along with Threats, SWOT presents a list of issues that affect businesses daily so they can be properly addressed. The analysis takes a step-by-step approach so that all major factors of influence are considered.
This means that your company is properly evaluated so that issues can be identified and changes made over time. It will take planning, work, and persistence, but the results of the SWOT analysis will provide you with a path towards success that builds up your strengths, overcomes weaknesses, and identifies opportunities and threats.
How it Works
The analysis is performed by those inside the company that come from different departments and thus have unique perspectives to provide. You can even include customers as part of the review to get all viewpoints represented. In addition to the analysis itself, there is the morale-building aspect of pulling together management with employees and specialists so that a proper view of the company can be envisioned.
The group will use the SWOT template to conduct their analysis, although you can simply create a list for every category and go from there. Either way, once the list or template is ready, the group engages in a brainstorming session that identifies relevant factors in terms of strengths, weaknesses, opportunities, and threats. A series of bullet points will be created which should be short and to the point.
Once all the relevant factors have been written down for each area, the group decides on a final version which rules out ideas that may have already been addressed or adds new ones that were not initially discussed. From that, the factors are ordered in terms of their priority and then the group focuses on potential answers.
Why SWOT Works
A SWOT analysis is perfect for both new and existing businesses because it helps to identify the companyâ€™s ability to work in the current market. For businesses that have been around a few years, the analysis provides a basis for reevaluating strategy and reshaping the company so that it is better positioned to take advantage of new trends.
For those who are just getting started, the SWOT analysis helps to shape your company as it begins to enter the market. This allows for a better read on what is needed to jump on current trends or make decisions about long-term efforts. In any case, it gives a new business a place to begin so it can expand more efficiently.
If your company needs a fresh evaluation, then the SWOT analysis is the answer. Itâ€™s simple to do and pulls together your company so that everyone can contribute. It not only provides a fresh perspective, but it also boosts the company morale because it gives voice to everyone involved.