The term SWOT is an acronym of the words Strengths, Weaknesses, Opportunities and Threats; it is well known and widely applied in many companies throughout the world. Below we will detail some SWOT Analysis examples and tips, which will show you how to do a SWOT analysis successfully.
SWOT analysis is a relatively simple system that aims to check the strategic position of a particular company in its field of operation, and because of its simplicity and methodological scope, it can be used to do any scenario or environment analysis, from the creation of a small business to the management of a multinational.
But to understand how to put SWOT analysis into practice, we need to understand its concept and what each word that makes up its name represents. Here are some sample questions and tips on how to do your analysis below.
Swot analysis examples for each part of Swot
The exercise of creating your SWOT analysis is too thorough and consider as many points as possible for each section. So let’s take a look one issue at a time:
Swot analysis example: Strengths
It’s related to the advantages that your company has over your competitors. These are the strongest skills of your business. To define them, answer questions like these SWOT analysis examples:
- What are your best activities?
- What are your best features?
- What is your competitive advantage?
- What is the customer engagement level?
Strengths can also be internal elements that benefit your business. Another way to think about this is to imagine the elements that are under your control, or that you can decide whether to keep or not. Some examples might be:
- The unity of your team;
- A certain amount of assets (real estate, modern equipment, etc.);
- Prime location;
- Strategic relationships;
- Billing model.
Swot analysis example: Weaknesses
Weaknesses are the things that interfere or in any way hinder the progress of the business. It is crucial to be sincere in this stage of analysis. Use the following excellent SWOT analysis examples to determine the weaknesses in your business:
- Are your employees qualified enough?
- What areas do you need improvement?
- What areas do your competitors have an advantage?
- Is your customer base too small?
The weaknesses found a need to be examined and observed in isolation so that you can nullify the problems they cause. If you cannot correct short-term weaknesses, ideally processes need to be studied to minimize their effects or avoided so that they become important strengths. Here are some more SWOT analysis examples of weaknesses to consider:
- Is your product highly perishable?;
- Are your raw materials scarce?;
- Do you have an unmotivated team?;
- Do you have outdated technology?;
- Is your delivery process inefficient?.
Swot analysis example: Opportunities
They are external forces that positively influence the company. There is no control over these forces because they can occur in several ways. However, research or planning must be done so that the company can take full advantage of them when they arise.
Here are some SWOT analysis examples:
- Changes in government economic policy;
- Changes in tax rules;
- Foreign investments;
- Expansion of consumer credit.
Opportunities are related to managerial desires, and even though they are outside the company’s control, in case they occur there must be adequate preparation to take advantage of them. Other SWOT analysis examples:
- A new trend that increases consumption;
- Can you take advantage of a failing competitor?;
- Access to new technology;
- A complementary product is being released.
Swot analysis example: Threats
Unlike opportunities, threats are external forces that negatively influence the company and should be treated with caution as they may harm not only the strategic planning of your company but directly in the results as well. SWOT analysis examples of threats to your business:
- New competitors;
- Loss of key employees;
- Law or regulation changes;
- Computerization and process automation.
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Threats can also be company management fears.
More SWOT analysis examples of threats:
- The entry of a much larger competitor in the market;
- The piracy of products;
- A shortage of manpower;
- Natural disasters/wars;
- The theft of technology or essential information.
These SWOT analysis examples of questions and reflections should be developed and interpreted in a way that unites the main components of external and internal analysis.
The “diagnosis” should be reliable and based upon the medium to long-term planning of the organization. It’s a method of administration that assists the company in many aspects, especially in decision-making.
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Check out: Porters five forces model for business management
I like that you mentioned that weaknesses that are found need to be observed in isolation. I think that if you observe the weakness then you can find solutions to the problem. I think that it is important to know how to take care of a problem; hiring a professional might be a way to find problems.
Hi John, thank you for your comments!