What is SWOT Analysis?
SWOT analysis is one of the most commonly used assessment tools by both individuals and businesses. Many rely on SWOT analysis to assess their current situation, to determine if there are major issues with company processes, to find ways to improve, or to identify and address organisational issues.
By conducting a balanced assessment of business internal strengths and weaknesses, plus external opportunities and threats, you can determine potentially beneficial areas where your organisation can improve and grow.
A company SWOT analysis typically looks at the following:
Internal Strengths – the positive things about the business. Examples of strengths are positive cash flow, effective branding and marketing, and minimal staff turnover.
Internal Weaknesses – setbacks and negative aspects of the business. These can include a lack of profitability or being untrained in a potentially valuable technological field.
External Opportunities – places where your organisation or business have the chance to develop or grow, such as entering a market where you currently do not have a presence or utilising new technology to improve your workflow.
External Threats – potentially negative impacts from external sources, such as competitors in your same field or changes in laws that affect how your organisation operates.
With the right strategy, SWOT analysis can reveal how to turn a threat into an opportunity or a weakness into a strength. However, without analysis, it’s very possible for the inverse to happen.
After conducting a thorough SWOT analysis, your team should be able to best determine how your team should move forward, where to direct your energy, and what to pursue in the future.