SWOT-analysis is called a method of strategic planning, which identifies factors of external and internal atmosphere of the respondents, can help to form a highly structured understanding of working conditions. The result of the study provides an opportunity to make the right decisions. Such an analysis was highly appreciated by managers and marketers.
SWOT-analysis - what is it?
To conduct such an analysis, large databases or special training are not needed, if the specialist has information about the object, he easily compiles the necessary tables. SWOT-analysis is a way of assessing the situation, which is based on the study from four positions:
- Strengths are strengths;
- Weaknesses - weaknesses;
- Opportunities - opportunities;
- Threats are threats.
Strengths and weaknesses - the data at the time of the study. And opportunities and threats are already external circumstances, which may not necessarily happen, it all depends on the decision taken. The first such an acronym was designated by scientist Kenneth Andrews at a commercial conference in Harvard, with the goal of investigating the modification of the company's actions. It happened in the middle of the last century, the strategy was applied to a narrow circle, and nowadays every manager can use the SWOT method.
What is SWOT analysis for?
In practice, such principles of SWOT-analysis are used:
- System approach.
- Comprehensive review.
- Dynamic. All subsystems are studied in development.
- Comparative consideration.
- Taking into account the features of the object.
The objectives of SWOT analysis are the definition of different parties, which are considered as internal conditions. Advantages of this method:
- Helps to calculate real and possible strengths;
- Analyzes weak points, seeks ways to improve them.
- Find out what means it is more profitable to use.
- Identifies the most critical threats and builds a good defense.
- Determines the reasons for effective work in the market.
Disadvantages of SWOT analysis
The method of SWOT-analysis does not contain tips or answers to the question posed, analysts are already engaged in this. The disadvantages of this method are much less than the pluses, but they must also be taken into account:
- The results depend on the quality and volume of information that can not always be fully ensured.
- When creating tables, computer errors are not excluded: loss of valuable factors, incorrect estimation of coefficients.
How to do a SWOT analysis?
How to do SWOT analysis? The scheme of actions is as follows:
- Identify the place where the research will be conducted.
- Clearly divide all the components, sharing strengths and opportunities.
- Do not rely solely on your opinion, the conclusions should be objective.
- To attract more people to work in order to form a substantial sample. It also builds SWOT-analysis of the enterprise.
- Use precise language that does not represent descriptions, but actions.
SWOT analysis - example
Based on the analysis of SWOT, the conclusion is formulated, as in the future the organization should commercially develop. Recommendations are presented on the reallocation of resources by sector. These materials become the basis for creating trading and advertising strategies, proposals, which in the future will be checked and finalized. SWOT-analysis involves the study of all parties, and evaluate them on the same parameters:
- features of the offer;
- the experience of employees;
- staff and management of business processes;
- admission to finance;
- good sales organization;
- logic of advertising policy;
- production costs.
How to do SWOT-analysis - try to break the process in steps:
- Study of the environment . The main question: what factors affect the business?
- Analysis of the environment . A series of questions should be aimed at identifying possible threats and risks.
- SWOT matrix . The collected information is grouped on four sides.
- SWOT strategy . Points of intersection of elements are calculated, the main strategy is built on them.
SWOT-analysis - topicality
The methodology of SWOT-analysis is developed taking into account all identified factors that must necessarily be linked to the developed strategy. Applying the results is beneficial for the development of the company, and for successful sales, and for promotion. The methodology is very relevant, today most of the executives of large firms implement such developments. The SWOT analysis should provide complete answers to such questions:
- Does the company have strong positions?
- Possible enhanced developments?
- Weak points that need correction?
- Useful abilities?
- External changes that help achieve goals ?