SWOT is an acronym that stands for “Strengths, Weaknesses, Opportunities and Threats.” SWOT is an analytical tool that allows you to identify internal factors, strengths and weaknesses of your company, along with external factors, opportunities and threats. Once you have identified the various components in a SWOT analysis, you can use each item to formulate a strategy to take action.
- Identify the overall goal and purpose of the analysis. You’ll want to define this clearly before beginning the SWOT analysis. For example, one objective might be to determine how to expand your business to a wider market.
- Write down a list of strengths that can be attributed to your existing organization for the objective you defined in Step 1. For example, if your company has run successful marketing campaigns in the past, this may be a strength.
- Write down a list of weaknesses that can be attributed to your existing organization. For example, your company may not have the manpower to complete the work that needs to be completed to expand the business.
- Write down a list of opportunities that are external to your existing organization. These opportunities will have a positive impact on your objective. For example, if a competitor changes its focus and may no longer be a direct competitor.
- Write down a list of threats that are external to your organization. For example, the economy being in a recession can be an external threat.
- Analyse and write down strategies to take advantage each strengths and opportunities and to minimize weaknesses and threats. Use these strategies to take action towards your overall goal or objective.