What Is a SWOT Analysis?
A SWOT Analysis is an evaluation tool for business leaders to assess the strengths, weaknesses, opportunities, and threats to the organization. Within reason it can also be used to evaluate key competitors. Typically, it is used in a strategic planning process to effectively evaluate where the company stands before moving forward with an opportunity or managing a limitation. The SWOT Analysis tool is also used by new entrepreneurs wishing to assess the competition in their respective markets. Usually, each component of the analysis is represented in a chart format with each segment placed in a different quadrant.
Why Is a SWOT Analysis Important?
The SWOT Analysis causes business owners and leaders to stop what they are doing and assess where the company is going or where a company may start within its industry. It is the hallmark of a strategic plan, and it enables leaders to sit down with all internal stakeholders to discuss the short and long-term goals of the company. Where this tool really shines is the opportunities and threats. Throughout the busy workday and meetings, it can be easy to forget to assess chances the company has to grow. Going through the SWOT process allows stakeholders to take the time to not lose out on any lucrative opportunities. SWOT is a large part of the strategic planning process, but many leaders are not utilizing this tool for various reasons. Many in business often struggle to bridge the gap between strategy formulation and its day-to-day implementation, this is where either a business coach or business management consultant like Friendly Organics can support. We have found that almost 70 percent of leaders and business owners spend less than a day a month reviewing strategy. The SWOT Analysis tool is so simple in its creation that it can improve on these issues if appropriately implemented. As with Porter’s five forces you can use this tool to look at individual products/services or areas in your business. It is wise to carry out a SWOT for the four P’s of marketing.
Download your free SWOT template.
September 18th, 2020