SWOT Analysis
A SWOT Analysis is a
structured brainstorming and evaluation tool used to identify your internal Strengths and Weaknesses and external Opportunities and Threats. You can use a
SWOT analysis prior to starting a business, to evaluate and grow your current
business, prior to launching a new product, or to improve a system or process.
You can also use it on a personal level to advance or change your career and
improve your financial health.
This SWOT
analysis spreadsheet will help your analysis and discussion stay organized and
efficient. There are a variety of layouts depending on your preference. They
can be printed and filled out by hand, or you can display and edit the
worksheet in real-time using a projector during your group discussion. The
numbers for each area can be used to organize your team's responses from most
important to least. The "action items and goals" section helps you
put your results into action.
The
information, steps and suggestions listed below will help you use the SWOT
analysis template effectively. The references listed at the bottom of the page
(especially [1]-[4]) were useful to us in preparing this material, and may also
help you learn more about how to apply a SWOT analysis effectively in your
business
S: Strengths (Internal)
Strengths are the
key things you do well that give you an advantage over the competition.
Continuing to remember, build upon and augment your strengths may help maintain
a competitive advantage.
W: Weaknesses (Internal)
Weaknesses are the
things you don't do well, or as well as the competition, that may hinder your
success and growth. Identifying your weaknesses will allow you to make goals to
minimize/mitigate them, turn them into future strengths, and determine if they
expose you to external threats.
O: Opportunities (External)
Opportunities are
changes occurring externally to your business that you could take advantage of,
such as changes in regulations, social changes, or new products that don't
currently exist. Opportunities help you identify areas where you can grow -
where to focus your time and resources.
T: Threats (External)
Threats are any
external factors that could have a negative impact, such as trends in the
market and society or government regulations. These factors are likely out of
your control, but your team should keep an eye on them and plan ways to
mitigate their effects.
Keep in mind that Strengths and Weaknesses are internal, while
Opportunities and Threats are external - confusing internal and external
factors is a common confusion in a SWOT analysis. For example, an action you
take to eliminate or improve a weakness is not an opportunity. It is simply an
action that you will take related to your listed weakness.
How to prepare for an effective SWOT analysis?
Identify the Purpose
You can perform a SWOT analysis on your business as a whole or
focus on specific aspects, products, or processes. The clearer the purpose, the
more effective and actionable the SWOT analysis results are likely to be. The
purpose will help determine what preparation is needed (such as who to involve,
what questions to ask, etc.)
Some examples of what you would use a SWOT analysis for are:
- Assessing where your company
stands today
- Launching a new product
- Deciding where to focus research
and development
- Improving a specific process
Research and Prepare
Now that you have a purpose, collect important information prior
to the group discussion. Get feedback from leaders, employees, and customers
regarding your internal Strengths and Weaknesses. Research your industry,
market, and competitors to gather information needed for external Opportunities
and Threats.
The SWOT analysis does not need to happen in a single meeting. You
may find that you need to do more research and get more feedback after a
preliminary discussion.
Who should participate in a SWOT analysis?
The more perspectives you can include related to your analysis the
better. At the minimum you should involve your core team - those who can take
action on the results.
If any of your team members are not familiar with SWOT Analysis,
you should brief them on the purpose and process prior to the meeting so that
they can come prepared with information and incites. Having them review the
definition of the four areas listed above can be especially helpful.
What questions should be
asked during a SWOT analysis?
The moderator of the discussion should try to come up with a few
questions for each of the four areas that can help guide and inspire the
discussion. Below are some sample questions to get you started. A few of these
are included in the SWOT analysis templates.
Strengths
- What do our customers love most?
- What are we more efficient at?
- What can we do for less money?
- What can we do in less time?
- What do we do better than our
competitors?
- What makes us stand out?
Weaknesses
- Where do we lack efficiency?
- Where are we wasting money?
- Where are we wasting time and
resources?
- What do our competitors do better?
- What are our top customer
complaints?
- Where do we lack expertise?
Opportunities [keep
in mind these are growth areas]
- What is missing in our market?
- What could we create/do better
than a competitor?
- What new trends are occurring?
- What new technology could we use?
- What openings in the market are
there?
- How/where could we grow?
- Do our strengths open up new
opportunities?
Threats
- What changes are occurring in our
market's environment?
- What technologies could replace
what we do?
- What changes are occurring in the
way we're being discovered?
- What social changes could threaten
us?
- Are there any threatening
government policies or regulations?
- What outside resources and
companies do we depend on?
- Do any of our weaknesses expose us
to additional threats?
How to run an effective SWOT analysis discussion?
Provide
a Brief Overview: Some of the team may be less familiar
with the process, so start the discussion with an explanation of the purpose,
how the discussion will proceed, and what you hope to accomplish by the end of
the meeting.
Discuss
and Brainstorm: The first part of the analysis
involves discussing each of the four areas and writing down your team's
responses along the way. You may want to use brainstorming techniques during
this part of the discussion. Keep the discussion fluid, not focusing for too
long on one topic.
Analyze
and Rank: After your team has come up with
multiple points for each of the four areas, you can discuss the items in more
detail. You may want to sort or rank them based on importance and priority.
What to do after SWOT analysis?
Make
Goals and Take Action.
Completing
a SWOT analysis is just the first step. It is important to then take the time
to identify potential courses of action. This is why our template includes an
Action Items & Goals section at the bottom which samples questions like
these:
- Which opportunities should we pursue? How can
we use our strengths to help us succeed?
- Which weaknesses can be worked on to help
maximize success?
- What threats should we learn more about or
monitor more closely? What strategies can we put into place to be prepared
for threats?
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