Making a swot analysis. Examples of SWOT analysis for companies from different industries

Any head of an enterprise should know the strengths and weaknesses of a SWOT analysis, because he should be ready for unexpected and not always pleasant surprises, respond quickly and clearly to them. For these purposes, the SWOT analysis technology is provided.

Knowing the strengths and weaknesses of SWOT analysis, through the use of marketing research of this kind in practice, an entrepreneur will always be able to find the best solution in any situation.

SWOT analysis, general concept

The concept of "SWOT" is borrowed from English and is essentially an abbreviation of English words:

• S - Strengths (forces) - talking about the strengths and advantages of the enterprise;
• W - Weaknesses (weaknesses) - shortcomings, weaknesses;
• О - Opportunities (favorable opportunities) - refers to opportunities from the outside, due to which, in the event of favorable conditions, it is likely to create additional advantages in the company's activities;
• T - Threats (threats) - circumstances that have the ability to harm the organization.

By conducting a SWOT analysis of the strengths and weaknesses of the enterprise, it is possible to clearly clarify whether the company (even) uses internal strengths to the fullest, and also identifies positions that can become strong, those that need to be corrected, etc.

What is a SWOT analysis for?

A standard SWOT study aims to analyze the strengths and weaknesses of an enterprise, assess risk (including) and best opportunities. It is important not only to obtain information of interest, but also to compare the results of the study with the indicators of the most important competing firms.

The conducted SWOT analysis allows you to answer important questions, namely:

1. Whether the firm uses personal strengths to the fullest.
2. What are the distinguishing features in the implementation of its own strategy the company has.
3. Are there weaknesses and how should they be corrected?
4. What opportunities are most likely to lead to success.
5. What are the likely threats that the manager should deal with seriously. specifics of the actions taken in this case.

The most optimal time for a SWOT analysis is the period when the direction is being formulated, in accordance with which further business development is planned.

What are the rules to follow when conducting a SWOT analysis?

When performing a SWOT analysis of the strengths and weaknesses of an enterprise, it is important to adhere to known rules.

1. The research vector should be clearly specified. When analyzing the entire business as a whole, the results will be very generalized and completely useless. Therefore, it is recommended to conduct a SWOT analysis in specific areas.
2. All concepts of SWOT analysis should be clearly understood.
3. Evaluation from the position of the market. In carrying out the analysis, it is necessary to apply the strengths and weaknesses in the state in which they appear to competitors and consumers. After all, strengths will be such only if they are so visible from the market position.
4. Put objectivity first. The input information must be versatile. Research should not be done by just one person. The possibility of deep analysis is allowed only in the case when the assessment will be given by the group.
5. The wording must be clear. Do not allow lengthy and ambiguous phrases. The result depends on their accuracy.

How SWOT analysis works

The principle of operation of SWOT analysis is simple and comes down to a certain scheme.

The first is the designation of strengths and weaknesses by experts. These characteristics are internal.

Here there is a designation of strong and weak elements characteristic of the company. In many ways, it depends on the literacy of drawing up a long-term plan.

To draw up an expert opinion, it is enough to arrange a survey for the management of the enterprise.

The assessment of strengths and weaknesses should be carried out in at least three different areas:

Carrying out the analysis of internal factors, it is possible to apply such a model. Rate vectors:

• How does the company's marketing activities respond to external environments?
• degree of adequacy to the marketing channel of the sales system;
• whether the organization of production processes corresponds to the adequacy of the manufactured products of the market;
• how logistics processes are organized and whether they are adequate to the marketing channel;
• to what extent the financial position of the company corresponds to its tasks;
• whether the administrative system corresponds to the quality of business process administration.

The second is a description of opportunities and threats.

This includes external factors, situations that are formed outside the company, the business environment of the company.

Threats are usually the same. They are:

1. Analysis of the strong weaknesses of the enterprise, assessment of opportunities and threats depending on the degree of impact on the company.
2. A SWOT matrix is ​​compiled, where all information is summarized in the form of tables.
3. The impact of factors is analyzed.
4. After compiling a description and conducting a marketing analysis, a strategy is determined, which is based on the results of the descriptions proposed above, using strengths and compensating for shortcomings.

SWOT matrix

All information received is entered into a special table consisting of 4 fields. Such a table is called the SWOT Analysis Matrix.

How to analyze the effect of factors

In accordance with the information received, an analysis is made and a conclusion is made as to how the "strengths" of the enterprise are able to realize the company's capabilities in achieving certain planned goals.

The SWOT analysis matrix after filling in the required data will look something like this:

Strategy MatrixSWOT analysis

In conclusion, a matrix of SWOT strategies is drawn up. This, in fact, is what it was all about.

All the data obtained as a result of the SWOT analysis is used to develop certain areas of the strategy, according to which the subsequent work will be based.

As a rule, the organization carries out work in several directions at once, namely:

• implementation of strengths;
• correction of weaknesses;
• taking measures to compensate for threats.

Based on the results of the analysis of tabular data, a matrix of measures is compiled to correct the shortcomings in the company's activities. All information is recorded in one table, represented by four fields:

After analyzing all the information presented in the table, a list of possible actions is compiled, the so-called "marketing plan".

Strengths and weaknesses of SWOT analysis

SWOT analysis of the strengths and weaknesses of the enterprise has both positive aspects and disadvantages.

StrengthsSWOT analysis:

• makes it possible to judge the strengths and weaknesses of the organization, as well as to initiate the likelihood of threats and opportunities;
• it is easy to use and quite effective;
• draws the relationship between the potential and problems of the company, compares strengths and weaknesses.
• analysis does not require extensive data;
• selects options in which the institution will adequately exist;
• helps to establish a promising direction for the development of the company;
• allows you to evaluate the profitability indicator and compare it with similar data from competitive organizations;
• forms the conditions for assessing the available resources of the institution;
• analyzing the strengths and weaknesses of the project, the management receives a warning about what problems may arise;
• the management team has the opportunity to engage in the expansion and strengthening of competitive advantages;
• due to SWOT-analysis, there is a formation of a clearer picture of the position in the market;

SWOT analysis of the strengths and weaknesses of the enterprise helps to avoid troubles, dangers and choose the most favorable development path.

SWOT analysis and its weaknesses:

SWOT analysis is a simple tool aimed at providing information structuring. Such a procedure does not offer any specific answers, quantitative assessments or clear recommendations.

The role of such an analysis is to obtain an adequate assessment of the main factors and, with a certain percentage of probability, to predict the development of specific events. The analyst should make appropriate recommendations.

In addition, it only seems at first glance that the analysis procedure is simple. In fact, the objectivity of the result is determined by how complete and high-quality the information was provided.

To obtain data as close to reality as possible, it will be necessary to involve an expert who will assess the current state and determine the likely vector for further market development.

If errors were made when filling in the matrix table, then it is not possible to identify them during the analysis. Therefore, in the event that any extra factor is added, or, conversely, there has been a loss of an important element, the conclusions may be erroneous.

An analysis of the strengths and weaknesses of the enterprise, performed according to the SWOT analysis, allows the entrepreneur to choose the most correct direction for the development of his business. That is why, the organization and conduct of such a procedure must be approached extremely responsibly.

SWOT analysis. Part 1 - Strengths and Weaknesses

One of the most popular methods for collecting the necessary information is SWOT analysis, which is widely used today in practice by serious and successful businessmen.

You will learn:

• What is a SWOT analysis.
• What tasks are solved with its help.
• What are the rules for conducting a SWOT analysis?
• What is a SWOT table.
• How is SWOT analysis carried out?

Deciding whether to launch a new business or choose the direction of an existing business is a complex task. Correct application helps to correctly assess its prospects and increase the likelihood of success. SWOT analysis, allowing to make an objective and comprehensive assessment of the enterprise.

The success of a business largely depends on making the right decisions at the right time. A prerequisite for this is to obtain comprehensive information about both your own enterprise and the state of the market, as well as other external factors.

SWOT analysis definition

In short, SWOT analysis is a method that allows you to assess the current situation by considering it from several aspects, including: the strengths and weaknesses of the enterprise, as well as external opportunities and threats.

The first letters of the English words denoting each of the listed terms gave the name to the method:

• strengths - S trends;
• weak sides - W eaknesses;
• opportunities - O pportunities;
• threats - T hreats.

An important feature of the method is the consideration of both internal factors, which include the strengths and weaknesses of the enterprise itself, and external factors, which are understood as opportunities and threats. It is an integrated approach to studying the current state of the company in the market and its development prospects that is the main reason for the popularity of SWOT analysis.

Fact. For the first time the term "SWOT analysis" was used more than half a century ago - in 1963. It was used on one of conferences taking place at Harvard, Professor Kenneth Andrews.

Two years after the appearance of SWOT analysis, it began to be used in practice in the development of strategies for various companies. Today it is actively used in all countries whose economies are developing according to market principles.

A checklist and a set of instructions for a manager that will save the company from ruin

How to understand that the commercial department can not cope with the work and what to change? Check the table prepared by the editors of the "Commercial Director" and understand if you need to worry. If you answer “yes” to at least one of the questions in the table, use the 14-question self-assessment checklist to conduct an express audit, find gaps, and reset the work of the sales department.

Tasks of the SWOT analysis

The main purpose of applying the method is to develop a business strategy based on maximizing the strengths of the company and minimizing potential risks.

It is important to note that SWOT analysis is deservedly considered a universal tool that, when properly applied, is effective not only in relation to the enterprise as a whole, but also to individual divisions or products. Moreover, the most important principles of analysis are often used in assessing a particular person and determining directions for his further professional or personal growth.

Despite this, the main scope of SWOT analysis is still business. In addition to the task indicated above, it allows you to solve other important tasks, such as:

• Analysis and evaluation of competitors and their activities. At the same time, the considered method is usually used in combination with others, for example, the Porter model, various marketing tools or PEST.
• Development of a step-by-step plan measures aimed at implementing the chosen development strategy of the company.
• Concept formation, tasks and main goals of the advertising campaign.
• Conducting competitive intelligence in order to compare the product planned for release with similar products already on the market, etc.

Important. A characteristic feature that SWOT analysis has is the absence of categories strictly tied to a particular type of activity. This allows you to successfully apply the method in a variety of areas and business areas.

The popularity and widespread use of analysis based on the assessment of four key factors is explained not only by its universality, but also by the possibility of adapting to the specific conditions of an economic entity. As a result, an individual model is created on the basis of general principles, which increases the efficiency of analysis and the accuracy of the resulting estimates and forecasts.

Rules for conducting a SWOT analysis

Before describing the essence of the method, which consists in the so-called SWOT table, it is necessary to consider the basic rules for its application. Following a few fairly simple and obvious recommendations for experienced professionals will make the application of the analysis more objective and competent.

The most important rules for the practical application of the method under consideration are as follows:

• Selecting a specific area of ​​study. It is much more correct to consider a product, a division or a separate direction of development than to analyze the work of an enterprise as a whole. As a result, the conclusions and estimates obtained will be more accurate and more suitable for practical use.
• Clear delimitation of the constituent elements of the tableSWOT. Their detailed description is given below. It must be remembered that the essence of the method is to separately consider each of the factors and combine the resulting estimates and forecasts.
• Minimizing the subjectivity factor. Despite the absence of a large number of quantitative parameters, the influence of personal opinion on the evaluated and analyzed objects should be reduced as much as possible.
• Collection of information from the maximum number of sources. Continuation and development of the previous rule. The purpose of its implementation in practice is to increase the objectivity of the analysis.
• Concrete and clear statement of conclusions. It makes no sense to write, following the results of the analysis, phrases of the following content: "We need to work harder." It is much more correct and effective to set clear goals expressed in quantitative form.

SWOT analysis table

The basis of the method is a matrix, or SWOT table. It is conditionally divided into two parts - the internal environment and external factors. Each of them is positively affected by the company's strengths and existing market opportunities, and negatively by the company's weaknesses and potential threats. It is logical to consider each of the elements of the analysis and the parameters that affect it in more detail.

Internal environment and factors affecting it

Among the advantages of the SWOT method is the ability to adapt to the specific conditions of a company or an individual product. However, there are some general principles for studying the object of analysis, which are summarized in the table.

An important feature of the analysis and evaluation of the internal environment is the possibility of direct influence on it by the company's management. Therefore, one of the goals of the SWOT method is the development of measures to further develop strengths and minimize the impact of weaknesses in the work of the enterprise.

External environment including SWOT opportunities and potential threats

It is practically impossible for an economic entity to influence the parameters of the external environment. However, a well-conducted analysis allows the company to make the most of the opportunities available to the company and at the same time minimize the impact of existing threats and risks.

(Please note that this analysis is provided for guidance only and is not affiliated with any active organization of the same name)

Characteristics of Gepard LLC

Marketing plan

The company's current priorities are:

SWOT analysis of Gepard LLC

This marketing method is a study of the company's capabilities. Further, based on the results obtained, recommendations are developed regarding the achievement of the set goals, as well as the identification of alternative development options.

First of all, it is necessary to give a full assessment of the company's macro and micro environments. The factors on which the assessment of the internal environment is traditionally based are:

• organizational;
• production;
• marketing.

The external (macro) environment is assessed through analysis:

• demand;
• competition;
• sales;
• resource allocation;
• factors beyond the control of marketing, such as the rate of inflation, the attractiveness of the sphere for incoming investors, and others.

Conducting directly the SWOT analysis itself is concluded in the following:

• Based on the assessment made earlier, make a list of opportunities that the external environment allows the company to implement. Here you should compile a list of factors that will help increase demand for the company's products, reduce the level of competition, and others;
• make a list of probable threats that can affect the enterprise from the outside. In this paragraph, we should talk about potential opportunities that can lead to a decrease in demand, change the priorities of the choice of ordinary consumers, increase the level of competition, and others;
• make a list of the strengths of the company. We are talking about the skills of the staff and their competence, the existing level of knowledge, as well as other factors that ensure the successful operation of the entire company;
• make a list of the firm's weaknesses. This paragraph highlights the most important reasons that hinder or can affect the development of the organization in the future.

When all the lists are ready, the most significant factors from all the lists compiled should be highlighted. This is a very important point, so only items that really do not play an important role should be discarded.

At the next stage, the classic SWOT-analysis matrix is ​​filled in, which assesses the impact of macro- and microenvironments on the enterprise as a whole.

After a thorough evaluation, the following points remained:

1.Features :

• sales of products;
• assembly by the enterprise;
• the possibility of warranty, as well as post-warranty service;
• the ability to meet the requirements of the client;
• flexible pricing policy;

2. Threats

• taxation;
• the constant growth of competition from larger manufacturers;
• insufficiency of own working capital;
• small capacity of this market niche;

3.Strength :

• production of products on modern high-tech equipment;
• flexible pricing policy;
• high quality of service provision;
• trained staff;

4. Weak side :

• direct dependence on the consumer market;
• lack of advertising;
• a small number of own installation teams;
• brand unknown.

Fill in the matrix table. The factors of the internal environment include the strengths of the company. External – opportunities and threats.

If the company has the ability to neutralize the threat or use the situation provided by the external environment, then a “+” sign is put in this column.

Put "-" is a sign that the company cannot get rid of the threat on its own, regardless of its strengths.

The graph remains free if there are no relationships between factors.

At the end of the procedure, not a single field should remain empty: each column must contain either “plus”, or “minus”, or “zero”.

Analysis results

The conducted SWOT-analysis showed the following results:

1. The company may increase, and thanks to its own research center, there is the possibility of implementing more advanced product variations.

1. The adopted tax system becomes the main threats and limiting the solvency of a potential client audience.

1. The weak side is the limitation of possible sales and direct dependence on the consumer market.

Analysis of existing management problems in Gepard LLC

• promotion of manufactured products in their market segment;
• service improvement;
• formation of a distribution network necessary to promote goods in the regions;
• obtaining a certificate, which will enable the organization to reach a new level of sales;
• raising the rating of the company and entering the leading position in the field of video security systems.

Tactics for the implementation of the tasks

Here, taking into account the specifics of the products produced, as well as the marketing analysis carried out, it is advisable to focus on direct marketing. It does not need large financial injections, but it requires coordination of work. Next, the directions in which the company should activate its activities will be considered.
Advertising
In this direction, priority will be direct mail to the addresses of potential customers. Also, the company's employees are required to visit nearby villages for the purpose of direct advertising. Additionally, aggressive advertising will be used.

Distribution

The first year of sales will mainly be carried out by employees of the company. But it is planned to attract firms that will install and adjust systems as dealers.

Increasing demand
Upon purchase, the customer will be provided with a product with a basic bundling system, but additional options will be available. As a bonus, you will be given the opportunity to install the system free of charge for up to 3 days, during which the client decides whether to purchase or reject this offer. This will additionally serve as an advertisement for potential customers (neighbors, friends, work colleagues, etc.).

Positioning strategy

After the company has chosen the most suitable market segment for itself, it faces the task of introducing it into the chosen market niche. In this situation, there are two options for achieving the goal:

1. Take a place in a small sub-segment in close proximity to a competitor, and then start the fight for a leading position in a selected market share.
2. Implement your task in a free subsegment.

Choosing the first option, the company should carefully weigh its own capabilities: is there enough internal potential to force out existing competitors.

The second option involves the provision of competitive products. The company gets a great chance to get its own audience interested in this product.

Product Existence Strategy

The marketing term "existence" means providing the product with the desired quality, affordability, attraction and pushing.

Accordingly, there are four types :

• commodity;
• price;
• attraction;
• pushing.

Let's consider each type in more detail.

The formation of any strategy of this type occurs according to the following plan:

• compiling the company's product portfolio;
• organizational issues related to the development of new products, changes to existing ones or the complete exclusion of goods are resolved;

• A brand strategy plan is adopted.

According to the results of the assessments, the commodity group of the Gepard company belongs to the zone of priority development. This fact means that for the manufactured goods, the priority direction of development is the expansion of the existing market, as well as entering its new levels. Accordingly, additional funding and investment is directed in this direction.

Improvement strategy

The quality of the goods and services provided must be constantly improved. And the main direction in the development of this strategy is to keep the product at the current level that meets the requirements of the market at a given time.

The term "brand" hides the direct name of the enterprise or product. For Gepard, it is most profitable to use the multi-labeling strategy. This choice is due to the fact that the products (security systems) have been used for a long time and the use of the same name will make it possible to raise the overall image of the company. In the case of introducing updated products, this will also be only a plus.

Pricing strategy

In this case, emphasis should be placed on leadership based on the relatively low cost of the product, as well as its quality characteristics. The cost of goods produced by the Gepard enterprise is lower than that of competing enterprises, so you can try to win a large part of the market segment by offering a quality product at a lower price. Progress in this direction will maximize the market share. To increase income, it is necessary to focus on the value of the product / service provided.

Distribution strategy

Distribution methods are also considered to be controllable factors that help solve the problem of bringing the product to the direct consumer.

Before making a decision to open a branch, you should first get an assessment of the location region (whether the volume of potential customers is sufficient here). Competing companies cannot be ignored. It is worth evaluating the main characteristics of their activities. After carrying out comparative procedures, a list of the most suitable regions for placement should be compiled.
The choice from the compiled list is most preferably built based on the most commonly used scheme. The proposed region conditionally becomes the center of the range, where its influence extends. It is conditionally divided into 3 zones:

• primary;
• secondary;
• extreme.

The primary zone includes almost 70% of the total number of consumers who use the services of the company. The remaining 25-30% of potential customers end up in the secondary zone. The extreme zone is casual consumers.

The choice of location area is additionally influenced by factors such as :

• assessment of potential client base;
• degree of competition;
• assessment of technical capabilities and others.

It is the evaluation analysis of the above factors that makes it possible to calculate the potential of the selected sales point with the greatest accuracy.

In order to most effectively influence the potential target audience, a communication strategy is developed for the unit, helping to form and maintain the desired image of the product and the company itself as an organization as a whole.

This strategy includes the following tasks :

• conducting personal sales;
• PR;
• advertising.

Gepard should develop its advertising policy more actively in the following areas:

• express yourself more loudly through advertising;
• advertise the benefits of the product being sold, focusing on high quality;
• formation of a positive image of the company.

Given that Gepard provides services in the field of supply of goods, an individual approach to customer service will be a better option. In addition, it is necessary to develop a stimulating system of discounts, which will make it possible to sell wholesale consignments of goods on more favorable terms.

Conclusion

The result of the research activity was the creation of a marketing strategy adapted specifically for Gepard LLC.

In the course of the enterprise, a characteristic of its activities was performed, an analysis of the micro- and macroenvironment of the company was given. Based on the analytical findings, the main objectives were formulated. The next step was to identify ways to achieve the goals and develop marketing strategies.

The following tasks are set for the enterprise:

• promotion of products in this market segment;
• service improvement;
• formation of a distribution network necessary to promote goods in the regions;
• obtaining a certificate that will allow the company to reach a new level of sales;
• raising the rating of the company and entering the leading positions in the field of video security systems.

To solve the tasks "Gepard" can be as follows:

• releasing more advanced analogues of the product;
• working "to order", focusing on the special requirements of the client;
• realizing its own competitive advantages - high quality and flexible pricing policy.

In the development of pricing policy, it is necessary to emphasize low cost combined with high product quality. Being a service provider, it is most expedient for a company to choose a policy of "individual approach" in conjunction with an incentive system of discounts.

1. A Brief History of SWOT
2. Why and when to conduct a SWOT analysis
3. S.W.O.T. Detailed analysis of the components
4. Actions based on the results of the SWOT analysis
5. Examples of successful and unsuccessful SWOT analysis
6. From SWOT to TOWS? How to deploy the algorithm and achieve the best results
7. SWOT Templates

What is SWOT?

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats.

SWOT analysis is a methodological tool designed to help companies and their employees in optimizing labor productivity, increasing competitiveness, maximizing potential and minimizing risks. The SWOT model helps to make better decisions - both large and small. It allows you to evaluate the effectiveness of actions - from the launch of a new product or service to a merger with another organization or the acquisition of a subsidiary. SWOT is a method that, when used correctly, produces only positive results.

The Fundamental Guide to SWOT Analysis was designed, written and designed by Justin Homer and Jackson Hille.

Justin Homer lectures at the University of California at Berkeley and will soon publish two books.

Jackson Hille is one of FormSwift's partners and is a recipient of a Special Achievement Award in American Studies from the University of California, Berkeley.

The manual contains all the information that a SWOT specialist needs. It describes examples of SWOT use by prominent companies (eg Dreamworks and Uber) and thoroughly examines all the components and ways to apply the analysis. There are free templates at the end. The guide will be useful to anyone and everyone, including creative start-up and entertainment executives, strategic planners at nonprofits and government organizations, and private entrepreneurs in the real estate or restaurant business.

Who is the guide for?

SWOT is a technique that can be used for any business goal, big or small. If you run a Fortune 500 company and are trying to determine the value of a special offer or are evaluating your position to chart your individual path, this guide will be a great help to you.

Why is guidance needed?

Your company is at risk! You risk freezing in place! Lack of movement can destroy any business, and SWOT analysis is an effective antidote. This guide reveals all its subtleties.

It is written in an accessible language and contains concise but effective examples. More importantly, it is backed by extensive research on the use of SWOT, published in leading business journals.

How to use the guide?

This guide discusses the SWOT method from a variety of perspectives that people with varying degrees of knowledge can understand.

If you are just getting started with SWOT, we recommend that you read the entire text from beginning to end to learn more about the history of the method and its scope.

If you are already familiar with SWOT, you can relearn the basics or scroll to the section you want (for example, about using the method in a certain type of organization). You may find our templates useful. Dispose of the guide at your discretion!

Brief summary and examples of using SWOT

In 1960, several American corporations launched a project at Stanford University to develop an improved method of strategic planning. This is how SWOT was born.

It is suitable for:

• rethinking the company's position in the market (Weaknesses, Threats - Disadvantages and Risks from competitors);
• determining the strengths of the company (Strengths - Benefits);
• search for new directions of development (Opportunities - Opportunities).

All this SWOT!

Although SWOT was "originally designed for business needs," "it can be used for the health and development of the community as a whole, and even for personal needs."

Below are examples of using SWOT analysis in a company that provides taxi services using a mobile application.

Uber + Lyft

SWOT example

Benefits

• The use of a special application for finding drivers and clients and a cashless payment system greatly simplifies the work process.
• Lack of staff and dispatchers
  reduces costs.
• Drivers use private vehicles, so the company has access to a huge fleet of vehicles that do not require maintenance.
• Drivers are in complete control of their schedule.

Weaknesses

• The business model is easy to copy.
• The use of GPS to track the location of drivers and customers poses a privacy risk.
• The flow of customers is unpredictable and changes rapidly.
• The company does not establish relationships with drivers, so the level of loyalty is extremely low.

Opportunity

In the following example, we'll look back at the inception of taxi companies using mobile apps.

Consider the impact that the emergence of Uber and Lyft has had on companies that provide services in the traditional way. The use of the latest technology has allowed them to easily penetrate the market.

They can expand and capture new sites (cities) or provide additional transportation services (for example, run school buses).

Risks

The use of mobile apps not only opened up new opportunities for Uber and Lyft, but also created serious risks for existing companies that have not mastered the latest technologies.

SWOT is often misused to justify existing practices. If you are doing an analysis to find areas for development, you need to clearly identify all the shortcomings.

Comments on individual companies

Uber services are only available in some metropolitan areas, so the next step could be to reach smaller cities and suburbs. However, the main threat to Uber is the numerous complaints and proposals to legally ban the company's activities.

Dreamworks

DreamWorks has taken the lead in 3D animation production due to two main strengths - extensive reserves (like the Shrek franchise) and an attractive work environment suitable for creative workers.

Logan decided that a busy training schedule and a trip to an international tournament could provide the team with new opportunities for gaining experience, and the youth and potential injury of the players posed significant risks.

Restaurant: By adding online food ordering and delivery, a business could gain new opportunities, while opening new restaurants and changes in the cost of products (for example, an increase in the price of fish) would pose a serious threat to it.

Construction firm: In terms of new opportunities, the firm could study the city's plans to expand the public transportation system and see how this expansion would affect the scale of private and corporate construction.

And here we return to the basic postulate of SWOT again: analysis is only useful when you compare yourself with competitors.

Uber + Lyft

SWOT example

Let's go back to the Uber and Lyft example. The services themselves arose under the pressure of mobile technologies on traditional companies that provided taxi services. If any of them had recognized this Risk earlier, they would have realized that the mobile offering could enable customers to get from one point to another efficiently and quickly.

By turning a Risk into an Opportunity, a company could evaluate its Disadvantages in terms of the existing Risk (in this case, lack of investment in technology or underdevelopment of infrastructure for a mobile application), and then make a strategic plan to eliminate the Disadvantages and use the Advantages (in this case, experience full-time drivers, knowledge of routes, etc.) to get ahead of the competition.

1. Brief history of SWOT

SWOT analysis was the product of years of research conducted by Stanford University in the 1960s and 1970s. By the end of the 1950s, many American companies were frustrated by the lack of results from investments in strategic planning, so in 1960 some of them launched a project to develop new methods. This is how SWOT was born.

2. SWOT analysis

When to do a SWOT analysis

When should a SWOT analysis be done? SWOT analysis is useful in countless ways.

• Do you want to know how effective a new initiative, product or acquisition is?
• Do you need a solution to a specific business problem?
• Do you want to evaluate an existing and ongoing strategy?
• Do you have extra funds that you need to invest profitably?
• Are you a non-profit or government organization that has received a large grant or donation and you don't know how to spend the money?
• Do you have new competitors? Do you need to evaluate a potential merger with another organization?
• Do you want to more precisely formulate your mission or social significance?

If you answered yes to at least one question, SWOT analysis will definitely help you!

Ultimately, it will come in handy in any situation that requires assessing the current state of affairs in the market (Disadvantages and Risks), identifying strengths (Advantages) and development directions (Opportunities).

Why Conduct a SWOT Analysis

Why is SWOT needed? SWOT analysis gives the company the opportunity to accurately assess its position in its field. Members of the Health Promotion and Community Development Working Group at the University of Kansas point out that "knowledge of the situation facilitates effective strategic planning and better decision making."

"Simple and applicable in any context" SWOT analysis provides such information, so its results can be used to create a strategy that takes into account internal advantages and external opportunities and focuses on correcting (internal) shortcomings and eliminating (external) risks. Moreover, despite the fact that "originally SWOT was designed for business needs", "it can be used for the healing and development of the community as a whole, and even for personal needs."

3. S.W.O.T. Detailed analysis of the components

Having determined the subject of analysis, you can begin to analyze all the components. SWOT consists of four components - Strengths, Weaknesses, Opportunities and Threats. All of them are divided into two categories - external and internal. The internal components include Advantages and Disadvantages, while the external components include Opportunities and Risks.

Advantages (Strengths) (Strengths)

Once you've identified your primary research question (eg, "Should I add product X to my new line?"), try to articulate the benefits. Any organization must be stable and reliable. Charlie Ioannue defines advantages as "resources and manufacturing capabilities that can be used to gain competitive advantage" (Ioannue, SWOT Analysis - An Easy to Understand Guide, 47-49).

This definition makes you think about the most important aspect of Benefits evaluation, which is how you compare yourself to your competitors. In other words, highlight the unique qualities of your company (eg long life, proven brand, low operating costs, high quality service, strong online presence, etc.) These will be your Benefits.

Weaknesses (Weaknesses)

After that, it is necessary to identify the existing shortcomings. Be honest with yourself. On the one hand, disadvantages are the absence of advantages. So, if some aspect of your business isn't a strength, it's most likely a weakness. Cash flow, brand awareness, marketing budget, distribution system, age of the company - you can find weaknesses in all of this. The main goal is to turn disadvantages into strengths, but this requires an honest recognition that the organization needs improvement.

Having considered the internal components (Advantages and Disadvantages), let's move on to the external ones (Opportunities and Risks). Opportunities and Risks interact with each other in the same way as Advantages and Disadvantages. They have similar (external) dynamics that allow them to be evaluated.

Opportunities

Opportunities are prospects for growth, greater profits and market share. Again, the evaluation is made in comparison with competitors. What capabilities differentiate your company from competitors? What opportunities would allow you to offer the same products or services, but at a higher quality or at a lower price? What customer needs are you still not meeting?

Technology is an external factor that always provides new opportunities and, as discussed below, creates new risks. What technological innovations could reduce the cost of goods or services, speed up production or distribution, or improve the customer experience?

Remember that opportunities always involve action. If you don't act, your competitors will.

Risks

Finally, determine in what aspects of the activity you are at risk. Are competitors developing similar products? Are they poaching your best employees? Such actions threaten your business.

Harvard Business Reviews defines Risks as "Possible events over which you have no control, and if they occur, you must have a mitigation plan."

Are you familiar with the latest legislative changes? Has a new law come out recently that increases your costs? What about taxes? All of these may be considered Risks.

Finally, technological innovations that provide new opportunities may create additional risks.

For example, you may be sued for insurance liabilities or demanded that the company be banned by law.

4. Actions based on the results of the SWOT analysis

The choice of an action plan based on the results of the analysis is a complex process that must take into account the specifics of the company. However, there are general notions about which approach to take. There he is:

• Enjoy the Benefits
• Eliminate Flaws
• Identify Risks
• Invest in Opportunities

In addition, it must be remembered that the main purpose of the SWOT analysis is to assess the current state of affairs. As researchers from the University of Kansas write, it is necessary to look for new boundaries, not justifications. SWOT is often misused to justify existing practices. If you are doing an analysis to find areas for development, you need to clearly identify all the shortcomings.

5. Examples of SWOT analysis for companies from different industries

tech startup

• Leadership, Management, Company management