How to calculate your analysis. What is a SWOT analysis? Analysis of potential threats to the enterprise

If you think that SWOT analysis is a boring theory from a marketing course, you are mistaken! Where do you start to analyze the situation in your business, what do you do first of all when you don’t know what to do and how to do it right, how you weigh everything "Behind" and "Against"? Advice from friends and colleagues, find a solution on the Internet, act on a boom? This is not enough, you need a real tool that will help you identify the strengths and weaknesses of the project and make the right decisions.

A SWOT analysis will help you with this issue. You can not only weigh risks with its help, but also build strategies, do audits, and analyze complex decisions. In this article, we will consider in detail the capabilities of this tool using an example and learn how to apply it in practice.

A bit of history

SWOT analysis was first introduced to the world in 1963 at Harvard by academic Kenneth Richmond Andrews. At the conference, for the first time, this method of strategic planning was introduced into the arsenal of modern business, which is used by all marketers, analysts and business owners today. It is a mandatory step in strategic planning and an excellent tool for auditing a company.

This method of analysis allows you to look at the business as a whole, at a separate cell of the company, business process or product from the standpoint of weaknesses and strengths, advantages and threats, both internal and external. And also, many use it in everyday life. Let's learn how to use it.

S.V.O.T. is an English abbreviation for four words:

S (Strengths)- strengths. When describing the strengths of the analyzed object, you should describe more of its own internal advantages. It is easy to do this if you perform this task as a team and with the help of the Internet. The more broadly and objectively you look at the subject of analysis (company, process, product, etc.), the more likely it is that SWOT analysis will provide effective conclusions, so do not assign this task only to marketers or managers.

W (Weaknesses)- limitations. A similar situation with disadvantages, remember all the disadvantages, all the unpleasant moments associated with the subject of analysis and write them down. Everything that weakens it and makes it unattractive, weighs it down - fix everything. Objectively and only in relation to the analyzed object.

O (opportunities)- opportunities. Describe what opportunities the external environment gives you? What favorable concomitant external factors help your subject of analysis to develop?

T (Threats)- Threats. Fix the facts that negatively affect the development or promotion of your object of analysis from the outside. In most cases, it deals with the competitive environment and changes in the external market that may threaten you.

SWOT Template

An analysis is performed by compiling a table or a 2 by 2 matrix in each cell of which the evaluation criteria are entered, for example:

You can copy this sample template into MS Word and print it for work.

There is an opinion that SWOT analysis is a superficial inaccurate analysis tool based on the subjective opinion of one person. However, if you do an audit by a team of specialists from different fields, you can quite achieve an objective picture of the situation.

SWOT analysis on the example of a company

We will now fill in the SWOT template or matrix with the data of one company X, which is in the auto business (selling new cars, parts, and repair services).

Let's start from the upper left corner with the strengths of the company that it has at the present time, then fill in the upper right field - we enter the internal existing shortcomings / weaknesses of the company there. In the lower left square we write the possibilities of the external environment that may be realized in the future, and in the right square we write threats and risks that are terrible for the business as a whole.


When you fill out the SWOT analysis matrix, analyze the upper squares from the side of the manager and from your customers, and the lower ones from the side of the company's management.

  1. As we see in the green square with a plus, you need to fix the company's resources. Personnel, equipment, software, finance, uniqueness, business processes, etc.
  2. In the beige sector, we fix shortcomings within the company. Answer these questions:
  • What's stopping you from selling more?
  • “What do you lack compared to your competitors?”
  • “Who hinders development or does not correspond to the assigned competencies?”
  • “What or what resource is missing to solve the problem?”
  • “What do your customers not like?”

3. The blue sector should reveal the opportunities that are provided to your company from outside. Answer these questions:

  • “What are the prospects for the development of your line of business in the modern market?”
  • “Is there an increase in demand for your product/service? Are the needs of your target audience growing?
  • “What are the legal trends in your area of ​​business?”
  • “Are there free niches where your company could make additional profit?”
  • “Is there an opportunity to expand the range of your product?”
  • “Who could help you grow your business? How?"

4. The most important threat sector. It is he who is a priority and will give us material for the development of specific measures. To fill in the red sector, you need to write answers to the questions:

  • "What are my worst fears?"
  • “I would have done….. but if not…. »
  • The company will cease to exist if...
  • “What actions of competitors will affect the development of the company?”
  • “What changes in policy and legislation are undesirable for business?”

These are the questions you need to answer as a team of managers and executives.

We get the result

What to do with these records next? The following is a ranking of your entries by importance, by their weight and value. In the example above, each entry is listed under its own importance number - the first most important. Identify the three most important positions in the “Threats” block; first of all, you need to develop a strategic plan of measures, company actions to eliminate or prepare for these threats.

Below the first paragraph is: "Loss of dealership due to failure to meet sales target." The sales plan is an internal factor, but the fate of the company is still influenced by the importer, who analyzes the share of sales in the region and can deprive you of the right to sell cars of a certain brand. It turns out that this is an external factor that is associated with internal and external problems. Solution: make a SWOT analysis of the sales department, it will show the problems that do not allow enough sales. Problem #1 is clear.

Further. "Dependence of income on fluctuations in the exchange rate". If you have internal accounting in foreign currency, you need to develop measures to reduce the impact of this factor on profitability, otherwise an increase in the exchange rate will destroy your margin (markup). For example: sell goods without arriving at the warehouse, increase the turnover of goods (sell quickly), form an insurance fund in case of fluctuations, make an adaptive price list that will be automatically converted into national currency at the current exchange rate on the day of payment, etc.

Further. "Dependence on the policies and decisions of the importer". Allocate an employee who will monitor changes and sales rules that the importer regulates. Let him deal only with communication with the importing company. Find a contact person in the importing company who can help with advice and establish contact with him for a long-term cooperation.

This data is entered into a table similar to this one:

About the pros and cons of the technique

advantage This method is - the ability to get a general spatial picture of the state of the object of analysis, which will help make the right decision. SWOT analysis can be applied in various fields and is available to everyone.

disadvantage is - the lack of accurate quantitative data that can show the dynamics of changes and the subjective factor in compiling.

Summary

That is how you will be able to understand: what to do next, where to move, what is stopping you. Such an analysis can be carried out separately for each department, which will help to identify more problems and, as a result, develop a strategy for further development or solution of the problem. The effectiveness of a SWOT analysis depends on the objectivity of the people who compiled it, as well as on the number of questions (coverage of the problem or condition). The more questions - the deeper you will touch the problem, the more auditors - the more questions and subtleties you will be able to work out.

As you can see, SWOT analysis is a fairly powerful marketing tool that allows you to draw up a competent business development strategy and correct existing shortcomings.

primary goal SWOT analysis– study of the strengths and weaknesses of the enterprise. An analysis of potential threats from external factors should be carried out, a search and definition of presumable ways for the development of the company should be carried out. In addition, the analysis helps to establish links between these components. The development of the SWOT analysis belongs to Professor Kenneth Andrews. It was he who took up adding factors from the outside and those inside to the matrix in the analysis and, as a result, obtained a visual classification of the definitions of phenomena, projects or organizations to select the main factors that determine the level of success.

Speaking about the name of the analysis, it should be noted that the abbreviation SWOT can be attributed to the names that are often put forward by American business teachers so that aspiring entrepreneurs can more easily remember the fundamental principles.

The name of the analysis called SWOT consists of several values. In this case, S is Strength, W is Weakness, O is Opportunities, and T is Troubles. It is worth noting that this abbreviation really capaciously and fully reflects the main business characteristics that, in combination with each other, constitute the main task of the SWOT analysis idea. This section of analysis is sometimes given the name situational. This indicator sometimes also acts as an independent part of the analysis plan, which is carried out before the goals and objectives are revealed. Below we will consider what types of SWOT analysis are.

What is the strength and what is the weakness of this or that enterprise? The analysis helps to reveal these data. These characteristics can only be controlled by the authors of the analysis project. Strength and weakness in the analysis tell about the features that exist at the moment. Thanks to SWOT analysis, you can get detailed information about these data.

Speaking about the opportunities and problems identified in the analysis, it should be noted that they are characteristics that can affect the outcome, but the entrepreneur cannot control them.

The factors that are considered in the analysis are very diverse. If desired, in the process of SWOT analysis, they can be divided into the following groups: organizational, financial, technical, personnel, marketing. The author of the analysis-plan has the opportunity to independently choose what form of ownership the future enterprise will have (we are talking about the organizational factor), use personal funds and own production assets. Personnel factors in the analysis, therefore, can be considered qualifications, skill levels and the number of shortcomings that the staff has. Marketing analyzes are always important aspects of the work, as they relate to the market, competitors, services, product differences.

In the process of SWOT analysis, one should consider, first of all, the factors that help to realize the idea. For example, entertainment establishments develop most rapidly in those periods when the number of solvent population grows along with the growth of their income, and this should be taken into account in the analysis. As for the optimal conditions under which car imports are possible, here, in the process of analysis, one can say about the factor that justifies the organization of car park networks.

Opportunities and problems in the analysis can be considered certain properties of the environment, conditions where business is supposed to be done. The economic environment is created by the socio-cultural and political situation, tax legislation, which is important for analysis. From these components, doing business becomes easier or, on the contrary, more difficult. When analyzing, it is worth remembering about technological indicators. For example, about the level of development of telecommunications, as well as demographic factors.

An example of using SWOT analysis: a company case

The editors of the magazine "General Director" considered an example of using SWOT analysis in the company "Avenir". This method allows the CEO to look at the benefits, opportunities, risks and threats, and decide whether or not to introduce a new contract into the company's portfolio.

Goals of the SWOT Analysis

Leaving behind the situational analysis, you can move on to the identification of tasks and goals. The goal of a SWOT analysis is the level of development you would like to reach in the process of implementing the plan. The beginning of the path to the goal is indicated in the analysis by the awareness of the state of affairs today. Planning helps to start a direction and outline its path - also a kind of analysis. It leads to the implementation of plans.

The goal in the analysis should be achievable, specific and defined so that efforts are concentrated on the main thing. Secondary qualities in the analysis are not so important. However, the scope of the analysis should cover a sufficient area to provide room for development. In addition, the analysis should indicate those special properties that your business has, unlike others.

4 combinations of SWOT analysis factors

  1. A development strategy is considered a combination in a SWOT analysis, where there are strengths and opportunities.
  2. A strategic development constraint is a combination of threats and weaknesses.
  3. Internal transformations must also have a strategy in the analysis. It may have strengths and weaknesses.
  4. Potential benefits and their strategy when analyzed are strengths and threats combined together.

What are the types of SWOT analysis

Express SWOT analysis is the most common option that helps in identifying the strengths of the enterprise. It is these parties, identified in the analysis, that are capable of resisting threats in the future, as well as using opportunities from outside. SWOT analysis helps to identify weaknesses. The advantage of this type of SWOT analysis is the ease of use and the visibility of indicators.

Consolidated SWOT-analysis, where there is a place for the main indicators that determine the performance of the organization today and provide information about the development prospects. The advantage of this type of SWOT analysis is that it can be used to obtain information on the quantitative assessment of factors identified using other methods present in the strategic analysis. Another advantage of the SWOT analysis is that it is possible to develop a strategy and other activities focused on achieving strategic goals. Strategic management involves a view from above, when the whole picture is more important than individual numbers. A tool - a strategic map of the company - allows you to build a complete picture.

The tool was developed within the framework of the theory of a balanced scorecard, you can learn how to draw up such a map and use it after passing through the School of the General Director.

A mixed SWOT analysis is a combination of summary and express analyzes. At least three main types of analysis are common in order to combine factors in tables and form a cross matrix. Quantitative assessment of factors, as a rule, does not occur in SWOT analysis. The advantage of a mixed SWOT analysis is that it allows you to analyze the data in depth and get an accurate result.

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What is SWOT analysis used for?

SWOT analysis is used to carry out strategic planning for the development of the capabilities of an enterprise or part of it. However, the use of SWOT analysis is often criticized, which is quite fair. The SWOT matrix contains a visual reflection of the factors that make it possible to form the strategies of firms, since a prerequisite for developing strategies is to take into account the strengths and weaknesses of the company.

When conducting a SWOT analysis, one should focus on maximizing opportunities, attracting the necessary resources for development, which should be accompanied by the development of a plan to reduce threats. At the same time, according to the SWOT matrix, it is impossible to reveal information about the four groups of analysis factors, but it allows them to be clearly demonstrated. By identifying strengths and weaknesses, opportunities and threats, other management tools should also be involved in the analysis process.

SWOT analysis is applicable for:

  1. Analysis of competitive environment factors. At the moment, if we take into account the framework of strategic planning technologies, SWOT analysis is considered as a separate stage in the evaluation and development of an information structure that was assembled based on the classic PEST models, Porter.
  2. Planning the implementation of strategies. In order to implement strategies developed taking into account SWOT models, balanced scorecard matrices are used in the analysis. Thanks to this tool, it is possible to identify which areas and performers in strategic development are key.
  3. Competitive Intelligence. For competitive intelligence, SWOT analysis is very useful. In more than 50% of cases, SWOT analysis helps to fully explore intelligence information about competing individuals and firms.

Pros and cons of SWOT analysis

The benefits of a SWOT analysis include:

  1. The ability to identify and structure strengths and weaknesses, potential opportunities and threats (for this, first of all, a SWOT analysis is needed).
  2. Efficient use and ease of implementation (SWOT analysis itself is quite simple).
  3. Identification of links in the analysis between the company's capabilities and real problems (a competent SWOT analysis allows you to get this information).
  4. Establishing links in the analysis process between the strong and weak sides of the company (this is perhaps one of the main tasks of the SWOT analysis).
  5. No need for extensive data for calculations (SWOT analysis requires aggregated data).
  6. Determining the prospects for further activities and development of the company using analysis (when real indicators are entered into the SWOT tables, it becomes possible to learn about the future prospects of the enterprise).
  7. Calculation in the SWOT analysis of potential options for the effective operation of the enterprise (a competent analysis allows you to get a clear picture of reality).
  8. The ability of SWOT analysis to evaluate profitability indicators, to analyze in comparison with competitive information.
  9. The ability of management to expand and strengthen the competitive advantages of the company (with the correct application of the analysis and the correct data entered into the SWOT tables).
  10. Creation of conditions for assessing the internal potential and resources of the enterprise (many companies use SWOT analysis today).
  11. Identification of possible problems, their timely prevention (identification of threats during the SWOT analysis is a useful procedure for any enterprise).
  12. The ability of a SWOT analysis to provide a clear vision of the market situation (the analysis provides an opportunity to really assess the picture).
  13. The ability to prevent hazards in the analysis, choose the best option.
  14. The ability to create a logical and consistent scheme during the analysis, where it is realistic to formulate data on the interaction of strengths and weaknesses, opportunities and threats for the company (SWOT analysis is intended, among other things, for these purposes).

SWOT analysis also has disadvantages:

  1. Lack of temporal dynamics in the SWOT analysis. Since the market situation is rapidly changing, the company's reaction to the emergence of new factors should be swift, as the analysis should warn about. SWOT analysis does not always take into account time factors.
  2. The absence of quantitative and evaluative indicators in the analysis, as a result of which the SWOT analysis, despite its simplicity, carries little information. We can say that SWOT analysis is not very informative.
  3. The presence of subjective indicators in the SWOT analysis itself.

To do or not to do a SWOT analysis?

Do a SWOT analysis if you need a quick and accumulated statement of facts, the creation of a statistical picture, an initial catalog of questions in order to further consider this data when analyzing it. A SWOT analysis, when done correctly, provides information about the initial, rough checklist. Analysis is also used for sketching in a notebook during meetings with partners and similar cases. SWOT analysis could be done by representatives of business education, since most of them do not ask frequent questions about the main goals of the industry.

Don't do a SWOT analysis, if you need information about the dynamic changes in the world obtained through analysis. To do this, the SWOT analysis is represented by a primitive matrix. With the help of it, it is really possible to get a static and fragmentary picture - the analysis is intended for this. You can compare SWOT analysis to a picture from the rearview mirror of a car, which often turns out to be wrong.

It should be noted that with a thorough audit (scientific, technical, marketing, organizational, financial), SWOT analysis with its data can significantly lose to other types of analysis. Often, he sins with rough estimates that do not correspond to reality.

An example of a complete SWOT analysis can be downloaded at the end of the article.

How to write a SWOT analysis: step by step instructions

Step 1. Preparing for a SWOT Analysis

To begin an effective SWOT analysis, you need to analyze the market, paying particular attention to product characteristics and customer research. The second component of the analysis is conducting a competitive analysis and identifying the main competitors. Strengths and weaknesses in an organization in a SWOT analysis are best identified through comparisons with competing organizations. At the same time, the strengths of the company can be absolutely everything in which the company is superior to competing enterprises, and this can be reflected in the analysis. As for the weaknesses indicated in the SWOT analysis, these are the nuances where competitors are in a more advantageous position.

To identify strengths and weaknesses in a SWOT analysis, you must:

  • write out information about internal factors that potentially affect the level of competitiveness of goods manufactured by the company (reflecting it later in the SWOT analysis);
  • determine in the process of analysis which factors act as the main ones, and enter the data in the table;
  • assess what is your superiority over competitors, and what you lose to them;
  • fill in the SWOT-table, indicating the strengths and weaknesses in the analysis process.

It is worth saying a few words about the determining factors that are important for SWOT analysis. It is noted here:

  1. Product properties (when conducting a SWOT analysis, they indicate which product characteristics are key for consumers and what needs they can satisfy).
  2. The degree of recognition of the product. Awareness of a product or service among the population plays an essential role in the sales process. The more people know about a brand, the higher the level of trust in it. This is important information for SWOT analysis.
  3. Consumer loyalty.
  4. Brand Perception Metrics. The population may develop certain associations with products, a certain image. Associations are both positive and negative.
  5. Consumer properties. In a SWOT analysis, it is important to consider how the consumer evaluates the quality of the product. It's not uncommon to find "super-quality" features that are among the best on the market, but buyers can't rate them the way they want to. These data must be taken into account in the analysis.
  6. Design and packaging can also be product strengths reflected in the SWOT analysis.
  7. Product price.
  8. Range breadth.
  9. Availability of technologies and patents.
  10. Personnel, intellectual capital.
  11. Product location.
  12. Distribution - degree and breadth. A company may have a strength in the form of unique access to a particular distribution channel or leadership in multiple distribution channels. The weak side is the presence of failures in the coverage of distribution channels. All this should be reflected in the analysis.
  13. Positioning of products on the shelves. Some product categories need proper layout to attract the attention of buyers.
  14. Cost benefits.
  15. Opportunities to invest.
  16. Availability of advertising and effective promotion methods. What new approaches and directions of development you need to think about in the near future, read the article Trends of 2018: new markets, new ideas, due to which you can grow in the new year.
  17. Rapid response to changing market conditions. New technologies, developing rapidly, have increased the rate of change in the market. If a company can quickly adapt to a new environment, we can say that this is its strength.
  18. Technologies used by the company. It directly depends on how productive and effective the actions taken by the company will be.

Thanks to the audit of the activities carried out at the moment, it is possible to influence the solution of emerging problems. It should be borne in mind that SWOT analysis information should contain information about both current and predicted trends. This is a necessary condition for an objective analysis and a clear understanding of the organization of tasks, namely: by whom, at what time and in what period they should be implemented. The number of employees participating in this process, their activities depend on what strategic tasks the company sets for itself.

Step 2. Identify Threats and Opportunities for Business Growth

It is necessary to conduct a SWOT analysis that affects the external factors of the environment, and at the same time evaluate how each factor affects the degree of sales of the company.

The factors of the external environment in the analysis are the possibilities of the organization (O = Opportunities). Due to them, the company can increase sales and increase profits.

The role of environmental factors in the SWOT analysis is the company's threats (T = Threats), which can subsequently reduce sales and reduce income.

To evaluate a company's capabilities, one should focus on a number of analysis factors. This is:

  1. Opportunities to expand the firm's sphere of influence (in a SWOT analysis, one can consider the possibility of distributing products in new countries, in new sales markets, in new segments, to determine whether new categories of products or services can be covered).
  2. New buyers in a market segment where products/services are already being sold (may be worth thinking about gaining the attention of new target groups).
  3. Opportunities aimed at increasing the frequency of use of a product or service by customers who are currently active, as well as increasing the monetary value of the purchase.
  4. Expansion of the assortment range, predetermination of the needs of the buyer and their satisfaction.
  5. The development of new technologies and the introduction of one or more programs that reduce the costs incurred by the firm.
  6. Expectation of weaker government regulation of the industry, the possible introduction of tax incentives and other solutions that can simplify the activities of the firm.
  7. Improved economic environment, stability, growth in consumer purchasing power.
  8. Creation of more optimal conditions for firms, elimination of serious competitors from the market environment.

When assessing potential threats to a firm in a SWOT analysis, one should focus on factors such as:

  1. Changes in lifestyle, consumer desires, which often leads to the fact that groups refuse to offer products (this is important for conducting a SWOT analysis).
  2. Deterioration of the competitive environment, emergence of new competitors.
  3. Beginning of tougher regulation by the state, new legal regulations that increase the costs of the company's activities in the industry.
  4. Recession in the economy as a whole, reduction in the audience of consumers; increasing sensitivity to the cost of goods, analyzing the likelihood that consumers will refuse goods if they are not priority items.
  5. An increase in the cost of production and activities for the sale of products, which is higher than the growth in value.

Practitioner tells

Anton Antich, Senior COO of VeeamSoftware, St. Petersburg

SWOT analysis can be used in the process of studying products manufactured by competitors. SWOT analysis makes it possible to identify strengths and weaknesses based on the main parameters:

  • level of functionality;
  • product satisfaction;
  • distribution channels;
  • price;
  • degree of customer support.

We will tell you below how to do a SWOT analysis of a competitor.

Step 3. SWOT analysis table

The SWOT analysis table allows you to structure all the information collected. It has four squares that list strengths, weaknesses, potential threats, and opportunities in a clear sequence. Depending on the level of importance, the identified factors are entered into the cells of the SWOT analysis table.

An example of a SWOT analysis of a competitor company

Step 4. Preparing conclusions

In order to draw conclusions from a SWOT analysis, one should consider the actions that are needed to prepare them. Required:

  1. Identify, develop, understand what the main competitive advantage is, based on the strengths of the product when conducting a SWOT analysis.
  2. Write in the analysis information about the ways in which it is possible, based on the strengths of the products, to develop the capabilities of the enterprise. Also reflected in the SWOT analysis.
  3. Describe in a SWOT analysis a way in which weaknesses can be turned into strengths, as well as threats can be converted into opportunities for business process development.
  4. If such transformations cannot be carried out, the SWOT analysis should describe ways to help circumvent threats and weaknesses, minimizing undesirable consequences for the company.
  5. Tell in a SWOT analysis about turning the identified benefits into obvious ones for the buyer.
  6. Describe in a SWOT analysis how to make threats less neutral in a minimum amount of time, and how to take full advantage of opportunities.
  7. Describe in the SWOT analysis ways to hide the weaknesses of the product from the buyer.

You can draw conclusions from SWOT analysis based on two methods.

Quick method in 30 minutes. After the SWOT table with strengths and weaknesses has been completed, you can proceed to the formulation of conclusions on the completed SWOT analysis. You should get rid of unnecessary and non-priority areas in each of the table fields and focus on the goals that are really important at the moment. Based on the finished SWOT analysis table, a number of conclusions can be drawn.

In a SWOT analysis, you need to evaluate:

  1. Which aspects of the product are strong, what are the competitive advantages of the product, how can they be developed and strengthened.
  2. What strengths, in your opinion, the sides of your company are not obvious to the consumer.
  3. What strengths need effective communication.
  4. How to realize the potential opportunities of your company in the shortest possible period of time.
  5. How to implement the strengths of the product to develop opportunities.
  6. How to make the impact of the weaknesses of the product on its implementation minimal.
  7. How to neutralize the threats that exist at the moment.
  8. How to hide the weaknesses of the product, which cannot be eliminated.
  9. How to turn threats to a business process into opportunities for its development and increase in profits.
  10. What protective actions can be taken as soon as possible.

In addition, a SWOT analysis should develop an action plan to eliminate the weak links in the company and turn them into strong ones.

Method "SWOT-matrix". In SWOT analysis, such a matrix is ​​the last stage. When analyzing, you can find the right strategies for the growth and development of the company, as well as get reliable data. The SWOT analysis matrix consists of four squares. All these squares in the analysis have tactical actions aimed at improving the competitive qualities of the product, reducing threats from the outside, ensuring the effectiveness of the use of existing methods to increase sales.

S-O actions. When talking about growth strategies in the analysis process, it can be noted that these are activities or programs that involve the use of key product strengths in order to capture every opportunity. To determine these actions, the parties and opportunities reflected in the SWOT analysis table can be considered. As you look at each opportunity in a SWOT analysis, you should have a logical question about how to effectively use the strengths of the products in the process of working with these or those opportunities.

W-O action. The analysis is about protection strategies. These are programs or activities that help change or improve, overcome weaknesses in order to take full advantage of identified opportunities. To determine these actions, the weaknesses and opportunities described in the developed SWOT analysis table should be considered. Looking at each described opportunity in a SWOT analysis, what weaknesses need special attention to overcome, ensure coverage, maximize opportunities? How should one act to deal with weaknesses?

S-T action. Speaking about defense strategies in the analysis, it is worth noting that the possibility of threats is quite possible to avoid if you use the strengths of the company. To identify threats in a SWOT analysis, both strengths and threats need to be considered. As you review each threat as you analyze it, ask a question regarding the selection of strengths that can protect the product or minimize risks when threats occur.

W-T action. Protection strategies, or activities that help improve and overcome weaknesses in a product in order to prevent or minimize the risks of threats. Weaknesses and threats should be analyzed to determine these actions. Looking through each threat described in the SWOT analysis, one must ask the question: which of the weaknesses contributes to the growth of the risks of certain threats? What should be done to strengthen the weak side in order to minimize the risks of threats?

To get the most detailed and reliable results, you need to use two methods of SWOT analysis at once.

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Step 5. Make a presentation of the results

Presentation plan:

  1. summary. The first section contains the key proposals, the conclusions of the SWOT analysis, presented in a short form.
  2. Introduction. Explain what tasks and goals the SWOT-analysis pursues, tell us about the analyzed, reviewed internal and external factors.
  3. Remember the basic form of SWOT analysis - a simple matrix that contains four squares containing information about weaknesses, strengths, opportunities and threats. The location of factors in a SWOT analysis should ideally be in order of increasing importance of their priorities. You do not need to specify a large number of factors. It will be enough 6-8 key values ​​in each of the categories of the SWOT analysis.
  4. Analysis data. Prepare visual images that illustrate the evidence for each factor you have analyzed. This will make it easier to justify the selected factors and priorities in the SWOT analysis.
  5. Findings in the analysis.
  6. Action plan. When conducting a SWOT analysis, you should suggest options for how to proceed.

Examples of SWOT Analysis

Wall Mart

When conducting a SWOT analysis, it is possible to talk about the strengths of the brand.

  1. The brand is known in the modern market, enjoys the loyalty and trust of customers (an important indicator for analysis).
  2. A brand can sell its product at an acceptable cost, which retains old customers, increases loyalty and attracts new consumers.
  3. Offers a wide range of products grouped into categories. The trade line includes all the major brands on the market. The buyer always has the opportunity to find the product that he needs.
  4. Stores are conveniently located and well thought out. The territories in which they are located are very passable, which ensures a stable influx of buyers.

At the same time, the brand also has weaknesses, which should also be reflected in the SWOT analysis, namely:

  1. Due to the small geographical expansion, the trading network in the international concept does not take the first place, but is inferior to a number of trading networks.
  2. There are quite a lot of Chinese products in the stores. At the same time, the percentage of defective goods is high, which has a bad effect on the company's reputation and reduces customer loyalty.
  3. Problems with employees. The organization over the past few years has experienced many conflict situations that have been associated with personnel. As a result, it became possible to talk about a reduction in the involvement of workers.

Company capabilities:

  1. Opportunity to increase sales and generate income through an online store. This helps to expand work in areas where there are no shops.
  2. Possibility of substantiation in new markets where the company does not currently exist.
  3. The possibility of replenishing the assortment range, adding brands that are not currently sold by the network.
  4. Opportunity to use the shaky economic situation. The organization of an advertising campaign with an emphasis on low cost saves the day.

When conducting a SWOT analysis, the following factors were identified that could become a threat to the company. These included the expansion and rapid growth of a number of large-scale chain stores. In addition, there is a barrier to entering a new market. Despite the fact that the trademark is widely known, in some countries there are political, social, legal barriers that complicate international expansion.

Donut LLC

The main activity of the company is the sale of equipment made in Russia, as well as baking bakery products from rye flour. By the way, the last activity is a hobby of the owner of the company. The company was founded by an entrepreneur ten years ago, and the businessman was immediately able to establish good and effective interaction with the largest customers.

Strengths of the company

Opportunities of the company in the external environment

The company has spread and today is quite famous.

The company has a good service center.

The enterprise timely paid attention to the signing of dealer agreements with successfully operating factories.

The sales department has a market structure.

Some time ago, the HR manager managed to find a competent Sales Director. Within six months, the specialist was able to increase sales by 60 percent.

The company has its own platform where specialists can work productively.

The company has set up a marketing department. It is headed by a professional. The effectiveness of the marketing information system is observed.

The firm organized a department for prospective development. It is led by a qualified specialist who participated in the development of seven new business projects

Improve the quality of service and reduce the time for customer service.

Focus on narrow specialization.

Develop cooperation with corporate clients and look for new industries of buyers.

Integrate with manufacturers.

Integrate tightly with factory enterprises and receive significant discounts.

Increase production profitability and control costs.

Create a new business, the main direction of which is the rental of equipment.

Implement CRM.

Weaknesses of the company

Threats of the external environment for business

The quality of the products is "lame" and does not even reach the average.

The working capital required for the purchase is always in short supply; the competence of the financial director is not enough

Accordingly, the question “how to do a SWOT analysis” is of particular importance in the life of an entrepreneur. It is about how to do a SWOT analysis that we will talk about today. Rather, we will develop such a step-by-step instruction - a questionnaire, after which the same question () will be permanently closed for you.

First, let's look at what a SWOT analysis is (I apologize in advance to those for whom this is superfluous). SWOT analysis is a planning tool and four comparative business elements. These elements are: Strengths (strengths), Weaknesses (weaknesses), Opportunities (opportunities) and Threats (threats). A properly done SWOT analysis provides an entrepreneur with a huge amount of useful information needed to make the right business decisions.

Learning to do swot analysis

SWOT analysis - 4-step instruction

For greater clarity, we will divide the SWOT analysis process into steps, each of which is represented by several questions. The answers to these questions are, in fact, the process of conducting a SWOT analysis. So.

Step 1 — Scanning the Business Environment

In this step, looking at our business environment, we must identify the factors that affect or may affect our business. All factors can be divided into internal and external. To determine these factors, answer the following questions:

1. What legal factors (laws and other regulations) affect (or may affect) my business?

2. What environmental factors affect (or could affect) my business?

3. What political factors influence (or can influence) my business?

4. What economic factors affect (or could affect) my business?

5. What geographic factors affect (or could affect) my business?

6. What social factors influence (or can influence) my business?

7. What technology factors affect (or could affect) my business?

8. What cultural factors influence (or can influence) my business?

9. What market factors affect (or could affect) my business?

The answers to the first 9 questions give you information about external factors, that is, about those impacts on your business that are in your environment, regardless of the existence of your business. All these questions, one way or another, are worth asking yourself in order to fully understand what can have any impact on your business. Of course, different factors will have a different impact in different business areas, but that's exactly what you'll understand by answering these questions.

10. Does (or could) my business be affected by competition?

11. Does (or can influence) my business the factor of management and business management?

12. Does the chosen business strategy influence (or can influence) my business factor?

13. Does (or can influence) my business the business structure factor?

14. Does (or can influence) my business factor employees?

15. Does (or can influence) my business factor affect my business goals?

16. Does (or can influence) my business the factor of leadership?

17. Does (or can it) affect my business the operational management factor?

18. Does (or can) technology affect my business in business?

The answers to questions 10 to 18 will give you information about how the factors associated with the entry of your business into the market will have in general. The list may not be exhaustive, much depends on the field of activity, but these are the main points.

And so, having answered the above questions, you will have an almost complete set of factors on which your business depends to one degree or another. Then you should analyze them and draw the right conclusions for yourself. In this regard, we proceed to the next step of our instructions on how to do a SWOT analysis.

Step 2. Analysis of the business environment

In this step of the SWOT analysis, we must analyze in more detail all the factors listed above and understand what they actually represent for us and our business. Let's do this, as you can guess, in a few questions. Here they are:

19. What legal factors for our business can be a threat, and what an opportunity?

20. What political factors for our business can be a threat, and what an opportunity?

The starting point for the final accumulation of all the key information collected using the previously described methods and the final analysis is the SWOT analysis (the abbreviation is made up of the first letters of the English words: strength- force, weakness - weakness, opportunity- opportunity and threat- threat) is one of the most common and effective types of analysis in marketing and marketing research, especially if the method is applied in its full version.

SWOT analysis allows you to identify and structure the strengths and weaknesses of the company, as well as potential opportunities and threats to the market. As a result of applying all preliminary methods of analysis, researchers should compare the internal strengths and weaknesses of their company with the opportunities and threats of the market. Based on the quality of compliance, a conclusion is made about the direction in which the organization should develop its business and, ultimately, the allocation of resources to segments.

The SWOT analysis methodology involves first identifying strengths and weaknesses, as well as threats and opportunities, and then establishing chains of links between them, which can later be used to formulate organizational strategies.

Strengths and weaknesses are elements of the internal environment in which a wide variety of aspects of the organization's activities can be embedded.

A strength is something a company excels at, or some feature that can provide it with additional business opportunities.

Weakness is the absence of something important for the functioning of the company, something that it does not succeed (in comparison with others), or something that puts it in unfavorable conditions.

Any element, depending on the perception of buyers, can turn out to be both a strength and a weakness.

Opportunities and threats are elements of the external environment. Opportunities and threats are outside the organization's control. They can be considered as external factors related to the elements of the market environment.

Opportunity is defined as something that gives a firm a chance to do something new: launch a new product, win new customers, introduce new technology, and so on.

A threat is something that can cause damage to the company, deprive it of significant advantages.

An environmental analysis, which should have already been completed by the time of the swot analysis using the PEST analysis and Porter's five-factor model (described above), can serve as an excellent starting point for this part of the swot analysis.

On the first stage implementation of the method, researchers, taking into account the specific situation in which the company is located, based on the results of a preliminary study of external and internal expertise, desk study of sources of secondary information, various surveys to obtain summary data, make a list of all its weaknesses and strengths, as well as a list of threats and opportunities market and represent it in matrix form.

The compilation of this matrix is ​​also called qualitative swot analysis, from which the stage of the full implementation of the method begins.

In table. 7.2 shows the most frequently included in the method directions of analysis, which should be disclosed for the market under study.

SWOT-analysis for any particular company is unique and may include one or more positions from the presented list, or even all at once. Each element presented in a qualitative swot-analysis should be as detailed as possible for a specific industry and the company directly studied.

After a specific, as complete as possible list of weaknesses and strengths, as well as threats and opportunities, second stage each parameter should be assessed with the help of industry experts and qualified employees of the company conducting the research according to its degree of importance for the company (on a scale: 0 - weak impact, 1 - medium impact, 2 - strong impact). For the components of the external environment, the probabilities of the presented opportunities and threats should be assessed on a similar scale by introducing an additional column into the matrix.

Table 7.2.

As a result, all assessed elements within each of the four groups should be ranked in order of importance to the organization and placed in descending order of importance. This stage of the implementation of the method is called quantitative swot analysis. Based on its results, as a rule, 5-6 most significant elements from each group are transferred to the next stage, so they can be immediately highlighted in color on the quantitative matrix.

On the third stage links are established between these four groups. For these purposes, a confrontational swot matrix , schematically shown in Fig. 7.1.

Intersections of the most important for the organization, according to experts, elements of weaknesses and threats (zone IV of the matrix) reveal the central problem for the organization as a result of the connection of these elements to eliminate weaknesses and prepare to repel possible threats. The intersections of the most important elements of strengths and capabilities (zone I of the matrix) form strategic priorities, i.e. how the company plans to use its strengths to take advantage of

Rice. 7.1. Shape of the Confrontation Matrix SWOT - analysis

be 100% satisfied by the favorable opportunities provided by the external environment and eliminate the central problem.

The existing options for confrontation can be the following:

  • strength/opportunity - market leader/market growth;
  • strength/threat - market leader or strong innovation/increasing competition or increasing consumer influence;
  • weakness/opportunity - low gross margin or loss of market share/market growth or large market size;
  • Weakness/Threat Low gross margin or loss of market share/increasing competition or increasing consumer power.

An example of the formation of a confrontation matrix for a website manufacturer is shown in Table. 7.3.

For the given example, the central problem can be formulated as follows: the company's passive advertising activity against the background of high competition forms the central problem of a low level of attracting new customers. The dependence here is as follows: if the company does not advertise properly, then potential customers may not learn about this company, and if there is high competition in the market, then the likelihood increases that new consumers will eventually cooperate with one of the competing companies, information about which will be available in different advertising channels.

SWOT analysis helps researchers answer the following questions.

  • 1. Does the company under study use internal strengths or distinctive advantages in its strategy? If a company does not have distinctive strengths, what potential strengths could they be?
  • 2. Are the company's weaknesses its competitive vulnerabilities and/or do they prevent it from taking advantage of certain favorable circumstances? What weaknesses require adjustment based on strategic considerations?
  • 3. What favorable circumstances give the company a real chance of success when using its skills and access to resources? It is important to understand here that favorable opportunities without ways to implement them are an illusion. The strengths and weaknesses of the company allow it to better or worse adapt to the use of favorable opportunities compared to other firms.

Table 7.3.

4. What threats should the company under study be most concerned about and what strategic actions should it take to protect itself well?

To avoid mistakes when conducting market research and get the most out of a SWOT analysis, must be respected the following regulations.

Rule 1 It is important to carefully highlight the scope of the SWOT analysis being carried out. When conducting research, a general superficial analysis is often carried out, covering the entire business of the company. As a result, it becomes too general and useless for its top managers, who are interested in deep detail, in particular opportunities in specific markets or segments. Focusing the SWOT analysis on a specific segment ensures that the strengths, weaknesses, opportunities, and threats that are most important to it are identified.

rule 2. It is necessary to clearly understand the differences between SWOT elements: strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal elements of the company's activities that are subject to control by its management. Opportunities and threats (the greatest number of mistakes are made in these elements during the implementation of the method) are associated with the characteristics of the market environment and are not subject to the influence of the organization. In other words, these should not be the opportunities and threats of the company itself, but only the market or the external environment. The company can only determine in the conclusions how to use the highlighted opportunities and how to avoid the negative consequences of market threats.

Rule 3 . Strengths and weaknesses can only be considered as such if they are perceived as such by customers, and not by researchers or employees of the company under study. In addition, they should be formulated against the background of existing competitors' proposals. For example, a strong side will only be strong when the market sees it as such. At the same time, the most significant advantages and weaknesses should be included in the analysis.

Rule 4 When implementing the method, researchers need to be objective and use versatile input information. It is impossible to entrust the construction of the matrix to one person, since this specialist may not be absolutely accurate and deep in the analysis of factors. It is more expedient to conduct research in the form of a group discussion and exchange of ideas. It is important to understand that a SWOT analysis is not just a presentation of the subjective opinions of the people involved in it. It should be based as much as possible on objective facts and data collected in the course of pre-realized intermediate methods for studying the external and internal marketing environment. Therefore, the process of identifying factors for each quadrant of the matrix should be carried out with the creation of an expert group from among the company's employees, dealers and other experts in this market.

Rule 5 Spaciousness and ambiguity must be avoided. Too often, swot analysis items look vague precisely because they include language that means nothing to most buyers. The more precise the formulations, the more useful the analysis will be.

Swat analysis should be as focused as possible, for example, if necessary, a separate table should be built for each new market or group of buyers.

It is very important when conducting market research to back up all statements by researchers with real evidence (quotes, letters, industry statistics, press reports, government publications, information from dealers, survey data and customer comments) so that they are not unfounded, subjective for company management, conducting the study, and therefore unconvincing for use in further work. It must be constantly remembered that the analysis should be built with a focus on customers, and not on the internal problems of the organization, which in no way affect its behavior in the market.

When considering each swot analysis factor, it is important to analyze it through a set of the following key questions:

  • - Is there any certainty that this is actually the case?
  • - How high is the probability of this opinion, does it require additional expertise?
  • - From what sources was this confidence formed and to what extent are the sources used reliable and objective?
  • - Is there a chance that things could change in the near future?
  • - Does the statement put forward have a meaning (relationship or meaning) for buyers of the company's products?
  • - Has a specific position in relation to competitors been considered?

Often when conducting market research, especially as part of a marketing system audit, a separate SWOT analysis is carried out for each leading industry competitor, as well as for different markets. This reveals the company's relative strengths and weaknesses, its potential to deal with threats and exploit opportunities. The procedure is useful in determining the attractiveness of existing opportunities and assessing the firm's ability to exploit them.

In such cases, often when using a SWOT analysis of market opportunities and threats, work is carried out with the strategic matrices shown in Fig. 7.2, 7.3.

Rice. 7.2.

BC - high/strong; WU - high/moderate; VM - high/small; HM - low / small, etc.

When constructing a strategic matrix of opportunities for the external environment, an expert assesses the strength of the influence of an favorable opportunity on the company and the likelihood of its manifestation. A cluster breakdown is performed in a matrix in which a discrete scoring scale obtained by an expert can be used, and based on the established ranges of the scales in which the factor will fall, united in certain quadrants. The position of each factor on the matrix can also be shown directly in it with specific points. In the analysis, only factors that fall into the upper left quadrant of this matrix (the first two squares horizontally and vertically) are singled out, since they have the maximum impact on the company and the most significant probability of occurrence. Factors falling in the lower right field are ignored as the least significant. The situational approach is applied to the factors occupying the diagonal.

A similar approach analyzes the threats of the external environment.

Rice. 7.3.

VR - high/destruction; VC - high/critical condition; VT - high/severe condition; VL - high / "light bruises"; NL - low / "light bruises", etc.

The difference in the structure of the threat matrix lies in a more multifactorial breakdown of the degree of influence of the threat on the enterprise, in which four clusters are already used: destruction, critical condition, serious condition, "light bruises".

By identifying the most significant factors of opportunities and threats, researchers analyze the possibilities of using them in strategic planning by pairwise comparison with the internal factors of the company's strengths and weaknesses.

You are the head of the enterprise, but do you know everything about it? Are you ready to voice a clear plan for the further development of your own business? Difficult to answer? Then it is necessary to put into practice already well-proven marketing research. They have already helped millions of entrepreneurs to find the right solution. One of the main technologies is SWOT analysis.

What it is?

The abbreviation SWOT is an acronym for the following English words:

  • Strengths - strengths or advantages of the organization;
  • Weaknesses - weak points or shortcomings;
  • Opportunities - opportunities or external factors that, if properly applied, will create additional benefits for the company;
  • Threats - threats or possible circumstances that can harm the company.

A standard SWOT analysis is precisely a comprehensive assessment of the company's activities, and not only its strengths, but also its weaknesses. But in the terminology adopted in this analysis, they are called parties, respectively strong and weak. An assessment is made not only of probable threats from outside, but also of favorable opportunities. At the same time, the obtained results are necessarily compared with the indicators of the most strategically important competing firms.

Conducting a SWOT analysis helps answer questions such as:

  • Does the company make full use of personal strengths, as well as its distinctive features in the implementation of its own strategy?
  • Which of the weak qualities of the company need to be corrected accordingly?
  • Which of the potential opportunities offer a real chance of success if all possible resources are used and the qualifications of the firm are taken into account?
  • What likely threats should the manager pay attention to, and what actions should be taken in this case?

Marketers recommend choosing the time period for carrying out a SWOT analysis when the direction in which the business is planned to develop in the future is formulated, and the period for determining the list of goals and setting tasks.

swot analysis matrix

During the analysis, specially designed templates are used, which are tables called SWOT-matrices. Which of them will be used during the implementation is a purely individual choice. It is worth noting that the results, regardless of the selected template, are completely identical.

Any swot analysis matrix filled in according to a specific pattern. The cells that describe the strengths of the enterprise are filled in first. Let's move on to its weaknesses. These two columns help describe the company's microenvironment.

To display the macro environment, you will need to fill in the two remaining columns. One of them should record opportunities, that is, the likely benefits that the company will be able to receive in the conditions of the current market, if there are no significant changes. And in the last column of the matrix, threats are recorded - those factors that can interfere with the development of the company's strengths and the use of the opportunities provided.

Microenvironment

Strengths include those moments where the company has significantly succeeded and what distinguishes it from competitors. Here you should also describe your competitive advantages, but be objective. These cannot be just allegations. They must be supported by certain indicators.

Such advantages may include:

  • unique resources of the company;
  • personnel with a high qualification level;
  • quality products;
  • brand popularity.

The weaknesses of the company include factors that drive it into a more unfavorable framework in comparison with potential competitors. As an example of a company's weakness, one can point to a limited range of goods produced or services provided, a not very good reputation, little funding, or a relatively poor level of customer service.

macro environment

As you remember, the macro environment in the SWOT analysis is presented in the form of probable opportunities or potential threats.

Opportunities should include the most favorable circumstances, using which the company receives additional benefits. It is the opportunities that contribute to the development of the strengths of the enterprise.

Threats are probable events, in the event of which the enterprise may find itself in not very favorable conditions for further development. Examples of such events may be the emergence of new competing companies on the market, an increase in tax rates, a change in demand from buyers.

Additional materials

The swot analysis matrix for a more complete and truthful filling will require additional information. Let's consider this point in more detail. All available data will be required for the following categories:

  1. Management

It contains all the information related to the construction of the work of the entire company. These are the qualifications of the employees of the enterprise, the connections that determine the level of interaction between all departments, etc.

  1. Production

In this category, an assessment is made of production capacities, the quality of existing equipment, and the degree of its wear. The quality of manufactured goods, the availability of patent or license documentation, if required, the cost of the manufactured goods are also considered. Additionally, the reliability of partners performing the role of suppliers, the level of service, etc. are evaluated.

  1. Finance.

This is the most important category that requires detailed consideration. It is here that the clearest gradation of the strengths and weaknesses of the business in question is observed. These are the costs of the production process, the availability and speed of turnover of cash capital, the financial stability of the enterprise and its profitability.

  1. Innovation.

How often are customers provided with an updated product list? What is the level of quality and how fast is the payback of capital investments? This subparagraph should contain answers to all the questions posed.

  1. Marketing
  • consumer reactions to manufactured goods;
  • your brand awareness;
  • the range of products presented by the enterprise;
  • pricing policy;
  • the effectiveness of ongoing advertising campaigns;
  • additional services offered by the company.

Rules for performing a SWOT analysis

In order to avoid possible mistakes in practice and get the maximum benefit from the conducted marketing research, strict adherence to several rules is required.

As far as possible, try to narrow down the field of activity in which the analysis will be carried out. If you perform this procedure simultaneously for all the activities of the enterprise, then the data obtained will be too general and absolutely useless from a practical point of view. Focusing the analytic process on a company's position in a particular market segment will help provide more specific data.

In the process of filling in the matrix columns in macro and micro environments, be correct in drawing conclusions regarding strengths/weaknesses and opportunities/threats for certain factors. Weak or strong qualities are represented by internal characteristics of the company. Whereas the second pair characterize the situation in a in a given time period, and cannot be regulated by management.

Qualitative performance of the analysis is possible only when all the data were completely objective. This strategic analysis should be made on the basis of the comprehensive information provided. The study cannot be entrusted to one specialist, since the information received may well be distorted by his personal subjective perception. In this marketing research, it is necessary to take into account the point of view of each functional unit of the enterprise. All data entered in the SWOT matrix must be confirmed by the available facts or the results of previous research activities.

It is absolutely unacceptable to use lengthy formulations or the possibility of its double interpretation. The more specifically the factor is formulated, the more clear will be its influence in the future on the activities of the company as a whole. And accordingly, the results obtained after the completion of the analysis will be of the greatest value.

Weaknesses of SWOT Analysis

SWOT analysis is just a simple tool for organizing information. This marketing procedure does not provide any specific answers or clear recommendations. It only helps to more adequately assess the main factors and, with a certain degree of probability, predict the occurrence of certain events. Formulating any recommendations based on the data received - this procedure is already within the competence of the analyst.

In addition, the apparent simplicity of this strategic analysis is very misleading. The veracity of the result, and, accordingly, the development of further transformations are highly dependent on the completeness and quality of the information provided. To really get the most real data, either the participation of an expert who is able to assess the current state and the likely path for the further development of the market will be required, or it will be necessary to carry out a very painstaking work of collecting and then analyzing the information received in order to achieve this understanding.

Errors that may be made when filling in the matrix table are not detected during the analysis. Therefore, the addition of an extra factor or, on the contrary, the loss of an important one or other inaccuracies lead to an erroneous conclusion, and hence an incorrect development of a further strategy.

SWOT analysis example

The analysis example shown is for demonstration purposes only. It shows the entire sequence of steps that will help you perform a SWOT analysis.

Determination of strengths / weaknesses (sides)

First of all, analyze all possible options. Each of the directions should contain at least 3 parameters that helped to assess the competitiveness of the business.

For example, let's take such a direction as "the appearance of the product." To analyze it, you will need to answer questions such as:

  • how much better/worse is the appearance of the packaging than the competing company;
  • convenience of packing in comparison with a competing company is better/worse;
  • how much better/worse the package design is compared to a competitor, etc.

We check the importance of identified strengths/weaknesses

Not the entire list from the first paragraph will be required to fill in the matrix. Now you should exclude minor items. To choose the right parameters, you should evaluate the impact of each in terms of potential customer satisfaction, as well as the profit generated.

The results of such a check will help to exclude parameters that play a minor role. The final rating of the microenvironment will be fully prepared.

Identifying likely growth paths

At this stage, you will need to write potential options that can . Two questions will help you with this:

  1. how the company can increase the level of sales;
  2. What are the ways to reduce production costs?

Make a comprehensive list of opportunities that will help your business grow. The following options are examples:

  • new sales territory;
  • expansion of the range;
  • influx of new consumers, etc.

Next, an assessment is made, and opportunities that do not have a decisive impact on profits and customer satisfaction are excluded. Having fully analyzed the entire list received, we cross out opportunities that do not have a strong impact on profits and customer satisfaction.

Identifying Potential Threats

This section should list options for potential threats. For example, why customers may refuse to purchase an enterprise product:

  • change in habitual lifestyle;
  • decrease in the income level of the population;
  • changed requirements for product quality, etc.

Then we exclude threats that do not threaten the development of the enterprise over the next 5 years.

Filling the matrix

Now that all the data has been received, we fill in the standard template. At the same time, the rating of all indicators is necessarily preserved. Further, based on the SWOT information, recommendations are made for the further development of the enterprise.

You can find a detailed swot-analysis, strategy and methods of conducting on the example of a particular enterprise in this article:

You can also watch the compilation of a swot analysis on the video.