A SWOT analysis is a simple but powerful tool for understanding the strengths, weaknesses, opportunities and threats involved in business. It can be used in many different situations and can be adapted to almost any industry. The SWOT analysis is often used as part of a strategic planning process, but it can also be used on its own to make decisions about business.
When to perform a SWOT analysis
A SWOT analysis is a strategic planning tool that helps businesses identify internal and external opportunities and threats. This type of analysis can be performed at any time, but it is especially helpful when businesses are planning for growth or change.
Internal factors that can be included in a SWOT analysis include the business’s strengths and weaknesses. Some examples of business strengths might include a strong brand, loyal customer base, innovative products, or experienced management team. On the other hand, weaknesses might include high overhead costs, Dependence on a few key customers or suppliers, or lack of online presence.
External opportunities and threats come from the macro environment in which the business operates. These factors are beyond the control of the business, but they can still have a significant impact on its success or failure. Some examples of external opportunities might include a growing market for the company’s products, favorable government regulations, or access to new technology. External threats could include increasing competition from other businesses, changing consumer tastes, or an economic recession.
By performing a SWOT analysis, businesses can develop strategies to take advantage of opportunities and mitigate threats. This type of planning can help businesses make informed decisions about where to allocate resources in order to achieve their goals.
What are the components of a SWOT Analysis?
A SWOT Analysis is a helpful tool that allows you to develop a well-considered business strategy. By looking at the internal factors (strengths and weaknesses) and external factors (opportunities and threats) that affect your business, you can identify areas where your business can improve and make decisions that will help you reach your goals.
Strengths
These are the things that your company does well or that give it an advantage over other companies. For example, your company might have a strong brand, a great location, or a loyal customer base. Once you have identified your company’s strengths, you can begin to think about how you can use them to achieve your goals.
Weaknesses
These are the things that could prevent your company from achieving its goals. For example, your company might have an outdated website or it might not have a strong social media presence. Once you have identified your company’s weaknesses, you can begin to think about how you can improve them.
Opportunities
These are the things that could help your company achieve its goals. For example, if there is a new trend in the industry that your company could take advantage of, this would be an opportunity for your business. Once you have identified the opportunities that are available to your business, you can begin to think about how you can capitalize on them.
Threats
Finally, you will identify the threats that are facing your business. These are the things that could prevent your business from achieving its goals. For example, if there is a new competitor in town or if there is an economic downturn, these would be considered threats to your business.
How to use a blank SWOT Analysis template
A blank SWOT analysis template can be used to brainstorm the strengths, weaknesses, opportunities, and threats of a particular situation. This template can be used in a business setting to evaluate a new product or market opportunity, or it can be used in a personal setting to reflect on your own strengths and weaknesses.
To use this template, simply fill in the four quadrants with your thoughts. Once you have finished brainstorming, you can then use the information you have gathered to make decisions about how to proceed.
Create your own SWOT Analysis template
SWOT analysis is easy, using FigJam’s simple template. When conducting a SWOT analysis, your team will look at ways to develop strengths (S), minimize weaknesses (W), discover opportunities (O), prevent threats (T), and track potential dangers.
FigJam’s whiteboard tool is the perfect canvas to create and share your SWOT analysis with your team. Get started by selecting this SWOT Analysis template. Then, follow these steps:
- List your organization’s Strengths.
Some possible strengths that could be included in analysis are:
- A strong brand
- A loyal customer base
- High quality products or services
- Innovative offerings
- Strong financials
- A skilled and experienced team
- Find your company’s Weaknesses.
Those could be:
- Lack of experience
- Limited resources
- Unknown brand
- High competition
- List Opportunities you can potentially pursue.
Some opportunities that can be mentioned in a SWOT analysis include:
- Expanding into new markets
- Developing new products or services
- Improving efficiencies
- Entering into new partnerships or alliances
- Threats can be any of the following:
- Competition from other businesses
- Economic recession
- Changes in technology
- Natural disasters
Pro-tip: color code sticky notes for each SWOT quadrant and use the voting feature to identify the top three strengths of your organization.
