What is a SWOT analysis?
A SWOT analysis is a planning method used to evaluate different factors internally and externally.
Creating a SWOT (Strengths, Weakness, Opportunities, Threats) analysis can be used either personally, for an organization, place, or product. This analysis can map out what you’re doing well, what you need improvement on, what openings there are, and what can hurt you. There are two types of factors involved in the SWOT analysis. The internal factors are the strengths and weaknesses of the organization while the external factors are the opportunities and threats that affect the organization externally.
Using a SWOT analysis helps in planning objectives and provides a landscape of the industry. It is a staple within the marketing world, much like knowing what the 4P’s are.
Some of the questions you can ask yourself to figure out your strengths are:
- What are your business advantages?
- What are your core competencies?
- Where are you making the most money?
- What are you doing well?
The questions to figure out any weaknesses are:
- What areas are you avoiding?
- Where do you lack resources?
- What are you doing poorly?
- Where are you losing money?
- What needs improvement?
The questions to find any opportunities are:
- Any beneficial trends?
- Niches that competitors are missing?
- New technologies?
- New needs of customers?
And finally, the questions to ask if there is anything that can cause trouble for your business:
- Obstacles to overcome?
- Aggressive competitors?
- Successful competitors?
- Negative economic conditions?
- Government regulation?
- Changing business climate?