Have you done your SWOT Analysis lately?
SWOT analysis exists as a framework in business plans and marketing plans, and it is very important for a business owner to understand how to analyse the Strengths, Weaknesses, Opportunities, and Threats affecting their company.
The concept of SWOT analysis has been around since the 1960s, and has become an integral part of business planning. Especially since General Electric used this form of analysis in the 1980’s.
It’s also important to understand that SWOT in broken into 2 sections – internal and external. Internal attributes are controlled by the small business owner, and External attributes occur outside the direct control of the business owner, but still need to be known. So if the external attributes change, you are prepared and can make changes internally.
In looking at your Internal attributes (Strengths and Weaknesses), you should be considering:
- What is your company culture?
- Who are your key staff?
- What is your Company image?
- How is your organisation structured?
- What are your staffs level of experience?
- How is your company operational efficiency?
- How is your company operational capacity?
- What is your level of brand awareness?
- What is your market share?
- What are your financial resources?
- Do you have exclusive contracts?
And when you are looking at your External attributes (Opportunities and Threats) it may help to consider:
- Factors affecting your customers
- Factors affecting your competitors
- Market trends
- Decisions your suppliers could make
- Decision your partners could make
- Social changes
- New technology and innovations
- Economic environment
- Political environment
For me, the benefit of SWOT analysis is that you see the entire playing field before you start.
‘Haste makes waste’ sums up what happens when don’t do SWOT.
Maybe folks avoid it as looking at the W’s isn’t always so much fun… but it has to be done!
@Ivan, Hi Ivan, Yes SWOT is a great research tool – not too specific and not too general. And I agree, the W’s are a bit scary to look at. But I think, every business has areas that need improvement. And this is the great thing you discover when looking at “Weaknesses”… 😉
Thanks for your feedback.
I heared aboutSWOT analysis once upon a time while i was studying in college …lolz
I agree, Doing SWOT analysis helps to know our strength and weakness, so that we can improve our business in a smart ways 😀
— Sudharsan @ Technoskillonline
@Blogging tips, Hi Sudharsan, It’s true that we tend only hear about SWOT in studying college, uni, or marketing courses. And it’s unfortunate that sometimes that’s where it stays… Business change and circumstances change and depending on your business, time to re-evaluate the SWOT should be made, at least every 6 months. Thanks for taking the time to comment. 🙂
Thanks for this educative post. An organized way of working makes success a much probable than keep on hard work bliendly. SWOT is very important for a proper and planned way of running a project.
@Suresh Khanal, Hi Suresh, I absolutely agree with you. When it comes to business, it’s very easy to get caught up in working hard, and forget to backtrack, look at your plan, and make sure you are working smart. Yes, SWOT is create for business plans and project plans. Thanks for your comment.