What is a SWOT Analysis | Nodus Works

If you want to create a better business strategy, evaluate your competitors and yourself objectively, SWOT analysis will help you.
In this article, we will talk about what is SWOT analysis and how to do SWOT analysis.

What is SWOT analysis?

It was developed in the 1960s by Albert Humphrey, who developed a research using the data of brands. Albert Humphrey's goal is to uncover why businesses fail when developing their strategies.

SWOT Analysis is named after the initials of Strenghts Weaknesses Opportunities Threats.
It is used to assess the performance of brands themselves and those of competitors, analyze the strong weaknesses of both sides, identify opportunities and threats from external factors.

It forms the first step in the strategic planning process of a business. It allows companies to take action against these factors after identifying their strengths and weaknesses, which are called internal elements. Threats and opportunities, on the other hand, are called external elements that do not occur under the control of enterprises.

Its general objective is to enable companies to discover their own talents and resources to develop strategies according to the operating environment. Successful businesses identify their strengths and weaknesses, be prepared for external threats and take action faster than their competitors.

How to perform a SWOT analysis?

A company that wants to do a SWOT Analysis must first create a team of profossionals to perform this analysis. This team should consist of the most senior people of the enterprise and senior management employees. Then it should begin with internal analysis.
• What are the characteristics that you are superior to your competitors?
• What are the things that are going right in your business?
In what ways do your competitors see you as superior to them?
• In what areas do you fail in your business?
• What are the issues you need to improve?
• In which areas are you not efficient?
What are your competitors doing better than you?

You can perform your internal analysis by answering questions such as; then to do your external analysis;

• What factors do you have around you that will positively affect you?
• What is missing in your market area?
• Which of the things you do frequently can benefit from?
• What are the negative things in the place?
• What are the areas that can hurt you in the face of your competitors?
• What obstacles do you face in your current business model?

You can answer questions such as and begin to analyze. You can synthesize these factors in order of importance and objectively evaluate your brand.