As a business owner, a SWOT analysis is crucial in understanding not only your role in the industry, but the overall environment you’re marketing in. If you’re not even sure what a SWOT analysis is, have no fear, we are here to help you!
We have yet to cover a typical SWOT analysis on the blog, but it is similar to conducting market research, just more intensive. You can find that blog here, https://bit.ly/3UFCfNj.
As with any business operation, if you find it too overwhelming to handle it all by yourself, you can always reach out for help! Elemental Plans is always here to advise and assist with any digital marketing needs. All you have to do is reach out! Go to this link here, https://www.elementalplans.com/contact, fill out the short form and someone will get in contact with you as soon as they can.
What Is a SWOT Analysis?
So, what exactly is a SWOT Analysis? SWOT is an acronym for
Strengths
Weaknesses
Opportunities
Threats
We divide up these four sections into a 2 by 2 grid and add information into each section. But what is the information we’re looking for?
We can break it down for you into each of the four categories, as well as a couple of examples to get you thinking.
STRENGTHS
In this section, you want to focus on what your business is doing well at. Anything from inside your business that is an asset. We relate these to internal factors, things that you can change and improve upon.
Some examples might be:
Strong team communication
Knowledgeable staff, eager to learn more
Great customer service
Superior product compared to competitors
WEAKNESSES
Weaknesses are also internal factors that are affecting your business. These might be areas that you are currently struggling in, need improvement, or are just less superior than your competitors. With weaknesses being internal, they are issues that you can act on and fix.
Some examples might be:
Large debt
Not a good online presence
Lack of leadership
Limited product range
OPPORTUNITIES
Pivoting back to the positive side of the grid, we now turn our attention to the opportunities that your business can take advantage of. These are external factors that are out of your control but that you can take advantage of now and reap the benefits. With external factors, we look at it as the environment surrounding your business.
Some examples might be:
Develop a loyalty program for customers
Discover and utilize brand ambassadors
Demand is up in our market
Use special offers to attract new customers
THREATS
Lastly, we turn to threats, which is still in the external view from our business perspective. Any threats that you might face in the industry you are conducting business in. These are again, outside of your control and can affect your business negatively. These could be obstacles your company may face or competition that may be a threat to your market share.
Some examples might be:
Competitors have better price
Losing customers to the competition
Inflation rising, costs skyrocketing
The market is becoming saturated with competition
How Do I Conduct A SWOT Analysis?
Now that we have fully reviewed each section of the SWOT analysis, it’s time to put your knowledge into action! It may be beneficial to get some feedback from others, maybe employees or business partners (if you have them). That way, you can also get a different perspective from yours. You may not have a firm grasp on portions of your business that you thought you did.
A SWOT analysis is essentially a brainstorming session where you write your ideas down on paper and then categorize them into the four sections we just discussed. It’s as easy and simple as that! The actual process may be simple but coming up with suggestions and ideas may be tedious and troublesome.
You can fine-tune your SWOT analysis into a more defined segment, like your marketing efforts, overall product offerings, or the business as a whole. That way, you can get more defined and specific when it comes to your ideas and suggestions.
There is no right or wrong answer here. A SWOT analysis is just a way to put down ideas and suggestions onto paper and organize them in a way that’s easier to read. It’s a huge benefit to your business to conduct a SWOT analysis regularly. It can never hurt and it’s a simple way to get an idea of where you sit and what you can do to improve upon your business.
In conclusion, a SWOT analysis is a simple tool for business owners to get an idea of their footprint in the industry and what they are doing right, and what they can improve on in the future. Within their own company and in the market itself. Compare themselves to competitors and see if there are any gaps in the market they can take advantage of.
Now, what’s stopping you from conducting one right now? Take a minute and see where it can take you!
Sources
Semrush Blog, “How to Do a SWOT Analysis (with Examples)”, Natalia Zhukova, November 4 2022, https://www.semrush.com/blog/swot-analysis-examples/?kw=&cmp=US_SRCH_DSA_Blog_EN&label=dsa_pagefeed&Network=g&Device=c&utm_content=622080543993&kwid=dsa-1754979158845&cmpid=18348486859&agpid=145169392750&BU=Core&extid=60113840771&adpos=&gclid=CjwKCAiAvK2bBhB8EiwAZUbP1BT2RICK_HBXBPO76ciIRzb5CKxrYxcn9X-x7nIUlqE4fiNisv9y_RoCt4cQAvD_BwE, Accessed November 7 2022
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