The SWOT Analysis which was founded in the 1960 by a collective of business professionals and was first mentioned in their book “Business Policy, Text and Cases” and has now become a crucial factor for every business nowadays to consider when evaluating their company’s positioning. The acronym SWOT stands for Strengths, Weaknesses, Threats and Opportunities and is a great way for organisations to develop a full awareness of all the external and internal factors affecting the business. After conducting a full SWOT analysis this should provide a great framework for the business to review their overall strategy, positioning and direction.
At SEO Organic we conduct a SWOT analysis for our Club 22 customers and feel that this is a highly important information source for the business in addition to the competitive analysis. Getting down to the nitty gritting areas, businesses will need to be certainly unemotional when looking strategically at their current business as no matter how good you think you are we do live in a highly competitive world and having an unbiased expert agency assist you in these matters can be the best way to address them head on.
Leveraging the time spent on conducting a SWOT can certainly be time well invested. When looking at strengths internally as well as externally this is where you really look into what you do well, what real advantages you have over you competitors, the level of experience you have currently within your company. When evaluating strength areas this can also look into tangible assets that the company has at the moment such as capital, distribution network, established customers etc.
When looking into weaknesses in both an internal and external capacity these factors could include poor location, limited resources, skills in-house etc. The more areas you pinpoint as weaknesses, the more valuable the analysis will be for your business.
Opportunities are normally only measured externally however can in some cases be looked at on an internal basis, for example: if you were looking at merging a department to make more commercial sense. Opportunities are however usually factors which present themselves for your business to prosper – this is the time to evaluate the current marketplace and look at any ways that your business can benefit.
Threats, usually again more of an external factor and an obvious one is current competitors. However threats are also mainly factors which are completely out of one’s control – such as government policy changes to affect legislation on your business, economic downturns or even price increases from current third party suppliers. It is noted though when conducting this analysis on your business’s potential threats then you should really rank them on how likely and when/if they could really occur.