If you want to create a better business strategy and evaluate your competitors and yourself objectively, SWOT analysis will help you.
In this article, we will discuss what SWOT analysis is and how to perform a SWOT analysis.
What is a SWOT analysis?
It was developed in the 1960s by Albert Humphrey, who used brand data to conduct research. Albert Humphrey's goal was to reveal why businesses failed when developing their strategies.
SWOT Analysis takes its name from the first letters of the words Strengths, Weaknesses, Opportunities, and Threats. It is used to
evaluate the performance of brands and their competitors, analyze the strengths and weaknesses of both sides, and identify opportunities and threats arising from external factors.
It forms the first step in a company's strategic planning process. It enables companies to identify their strengths and weaknesses, referred to as internal factors, and then take action against these factors. Threats and opportunities are referred to as external factors that are beyond the control of companies.
Its overall purpose is to enable companies to discover their own capabilities and resources and develop strategies according to their operating environment. Successful companies identify their strengths and weaknesses, prepare for external threats, and take action faster than their competitors.
How is a SWOT analysis conducted?
A company wishing to perform a SWOT Analysis should first form a team of professionals to carry out this analysis. This team should consist of the company's most senior personnel and top management employees. Then, the internal analysis
should begin. What are your strengths compared to your competitors?
• What is going well in your business?
• In what areas do your competitors consider themselves superior to you?
• In what areas is your business failing?
• What areas need improvement?
• In what areas are you inefficient?
• In what areas are your competitors taking better action than you?
By answering such questions, you can conduct your internal analysis. Then, to perform your external analysis:
• What factors in your environment will have a positive impact on you?
• What is lacking in your market?
• Which of your frequent activities can you benefit from?
• What is currently going wrong?
• In which areas could your competitors harm you?
• What obstacles do you encounter in your current business model?
You can start by answering and analyzing these questions. You can synthesize these factors in order of importance and objectively evaluate your brand.
