SWOT analysis definition
It is a method of assessment which is applied to any business, situation or person. Various features of your business are included in this research program: its capabilities (prospects) and threats, strengths, and weaknesses. As a result, final analytical information is gathered into tables based on which the appropriate conclusions can be made.
The main idea of SWOT analysis is to consider all the features of your business, formulate a realistic picture and plan the future of your company with much more clarity. SWOT analysis development can be not only for an enterprise, a new business, a product, or a service. You can also do a self-examination.
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SWOT decoding
- S-strengths. For example, the sale of goods directly to the buyer, the profit is greater than competitors, the best client-service on the market, etc.
- W-weaknesses. For example, not enough partners, ineffective advertising, a small target audience.
- O-opportunities. For example, potential customers will find out everything they need about your product on the Internet, purchases are made around the clock, regardless of whether you work or not.
- T-threats. For example, the competitive brand is better known in the market, the quality of competitors’ products is higher.
Company’s strong and weak points related to the company’s internal issues. One might eradicate them, but it takes time and effort to achieve this objective. Opportunities and threats come from the market and can not be tackled in a direct way.
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Companies might make use of SWOT analysis whenever they want in order to change the dynamics of their development and add something new to their strategy. It is a common practice to review existing strategy at least once a year and use SWOT analysis from time to time. Companies which only started their business activity require this analysis as soon as possible.
SWOT analysis table of main parameters
| External audit(market attractiveness is estimated) | Internal audit (strengths and weaknesses analysis of the company) |
| Market Trends:
it is necessary to analyze market trends, describe the development of demand in each market segment. |
Management:
you need to assess the qualifications, motivation of employees, their trust in the company and its management. |
| Buyer behavior: it is estimated when making a purchase, his habits, and interests. | Marketing:
advertising, personal sales, PR, comparison of advertising activity with competitors, the effectiveness of their own marketing efforts. |
| Sales structure:
the motivation of the company’s partners and their expectations from the partnership are estimated |
Analysis of the company’s sales system:
needs and requests of trading partners. |
| Competitive environment:
it is necessary to assess the market power of consumers and suppliers, the threat of substitutes, the barriers to entering the market. |
Competitors priority analysis:
the best price on the market, the best brand, brand awareness |
In the external environment there are a number of factors from which the company is not insured:
- political situation — the passage of the laws;
- the economic situation of the country — the change in GDP, the exchange rate;
- climatic features;
- technological change — when new advanced technologies appear on the market;
- demographic situation.
All of these factors are changing. The strength of these factors depends on the specifics of your business and business operations by enterprises.
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For example, Apple has introduced the EarPods wireless headphones on the market. Thanks to a well-designed advertising campaign — they became the main trend of the fall in 2016. «Apple fans» rushed headlong to buy this miracle of technology, which increased Apple’s budget. After the release of AirPods, Apple’s main competitors began producing similar products. These are headphones: Samsung Gear IconX, Motorola Verve Ones +, Erato Apollo 7 and others.
SWOT analysis rules
This analysis may be performed by a company’s employee as well, it is essential to know the overall situation on the market. Adhering to rules of SWOT analysis for a business is a must.
- You need to focus your analysis on one market segment, ignoring areas that are not relevant to your business. The main thing is to find the strengths and weaknesses that relate specifically to your business.
- The most crucial thing is to be realistic about the real situation in your company concerning strengths and weaknesses. Even though your company can not influence opportunities and threats, you need to know about them to make good and informed decisions.
- It is necessary to take into account the strengths and weaknesses of the product or service that are marked by customers. For example, your company produces ice cream. To attract the attention to your products you need to make the product: tasty, from natural raw materials, with attractive packaging design and its price were lower than that of competitors.
- SWOT analysis company should be carried out by a group of experts to provide an impartial assessment of your product or service. KATASIS marketers or auditors are ready to provide all the required assistance.
- The more accurate the wording, the more useful the analysis will be. Therefore, one should avoid lengthy, non-specified and ambiguous statements that mean nothing to most buyers. Following those rules would pave the way for solid analysis and a realistic understanding of your company’s current situation.
McDonald’s SWOT analysis example
|
Strengths 1. Quick cooking. 2. Good brand recognition. 3. Partnership with local suppliers. 4. Effective cost control. 5. Limited advertising budget. 6. Celebration of children’s birthdays. 7. Quality products. |
Weaknesses 1. Menu — fast food. 2. Big turnover of personnel. 3. Negative reviews among consumers of a healthy diet. |
|
Opportunities 1. Changing consumer habits. 2. Adding healthier foods to the menu. 3. Food delivery to your home. |
Threats 1. The growing popularity of healthy eating. 2. Increased competition among local big players in the market (Burger King). |
The procedure of ordering SWOT analysis from KATASIS
If you decide to order the SWOT analysis development in our company, the procedure will consist of the following steps:
- Meeting with the customer and ask agreement.
- Preparation of commercial proposals.
- Negotiation of the agreement.
- Payment in advance.
- Collect baseline information.
- SWOT analysis development.
- Providing interim results.
- Correction of comments.
- The final calculation.
- Final results transfer.
- Closing documents transfer.
SWOT analysis services from KATASIS
SWOT analysis conclusions should be applied in your company. Our company is able to provide a new development strategy based on the obtained result. If you want to achieve better results with your business, we are ready to help.
