You have come to the right place to learn what is SWOT Analysis!
This method can be compared to taking a snapshot of any particular situation. You weigh up the strengths (S), the weaknesses (W), the opportunities (O) and the threats (T). You look at and assess the internal and external factors that will affect your situation – and the likelihood of reaching a particular objective or goal.
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The SWOT analysis will help you understand any situation better, i.e. your market. In this way you can equip yourself better for the future. This analysis method will help you predict changes and prepare for them.
The SWOT analysis is so useful in helping you to decide on the best way forward when you have a clear objective in mind.
This method is useful in deciding how well you will meet a goal or objective in:
- Introducing a new technology
- Allocation of resources
- Adapting to changes in the market
- Counteracting changes made by the competition
- Introduction of new products
- Restructuring of your business
To name but a few.
In learning what is SWOT Analysis, there are many limitations to the method - being aware of them starting out will help you to be more successful.
Step 1: A SWOT Analysis brings the best results when related to a goal or objective. State the goal you are referring to in this analysis.
List the strengths – noting the present and future strengths to do with the situation.
Qualify these strengths.
For example: (+) = Fair (++) = Good (+++) = Great
List your weaknesses, also noting present and future / likely weaknesses.
Qualify these weaknesses.
For example: (-) = Poor (--)= Bad (---)= Very bad
Research and state the opportunities that exist or will exist in the near future. As with step 3, qualify these strengths.
Research and state the threats facing the situation.
List up the key information gained from this way of structuring your situation.
Weigh up the points and give them priorities.
State action items that aim to
- Build up your strengths
- Minimise your weaknesses
- Help seize opportunities
- Counteract any threats.
1. Keep it Short and Simple, while not forgetting any of the important details.
2. Always carry out your SWOT with reference to a particular goal or objective. You can always carry out further SWOTS and connect the results: “Join up the dots”.
3. Get as much input from others. By sharing your perspectives with others, you may highlight new insights that you otherwise may not have had.
4. Include in the analysis those essential aspects of your business upon which your competitive advantage is founded.
5. When you have finished your SWOT analysis, list the outcomes according to their importance (relative to meeting the goal). Determine and carry out action items to the most important issues.
6. Revisit and review your SWOT analysis at a later date. Not only will it contain knowledge about your business but you can see how close to the core of the solution you were.
I hope you enjoyed learning what is SWOT analysis. Don't forget to try it out regularly, to keep in practice. It is really useful in business as well as in private life.