Sunday, 4 July 2021

 For an organization in order to perform well, there is need that the company should follow the SWOT analysis phenomenon. In this guide, we will discuss on complete guide regarding the SWOT analysis, what it is? How to do SWOT analysis?

The term SWOT refers to the Strengths, weakness, Opportunities, and the threats. So the SWOT analysis of the company stands for the analysis of the strengths, opportunities, weaknesses, and the threats associated with particular project or the company. This analysis is a method to assess all the above mentioned aspects related to the business.

With the help of SWOT analysis, it becomes easy for the organization understand all the essential factors regarding any project before they finalize for any project. This analysis helps the organization in determining the strength, weakness, opportunity, and the threats related to the project which the company is planning to finalize or start.

Also, with the help of the SWOT analysis, the company can determine the strength, opportunities, weaknesses, and the threats associated with the business strategy which the company is planning to use for their upcoming business activities or project. This way it helps the organization to select and design their business strategy in such a way to increase the associated strengths and opportunity and decrease the associated weaknesses and threats.

In order to do SWOT analysis while formulating the strategy for your company, note down all the associated strengths, weaknesses, opportunities, and the threat in the grid format.

This table format of the all aspects of the SWOT analysis will help the company to select the more potential business strategy and thus better project outcomes.

Following we are going to discuss every aspect of the SWOT analysis in details: 

The strength associated with any business strategy or the project refers to the potential. The strength of the company differentiate it from the competitor’s company in good sense.

In the strength section, the company should note down the potential part of the company that is advantageous for the company over the competitor’s company. The strength of the company is often the positive and motivational part for the staff of the company and it consists of the strong skills, better manufacturing processes, and the certain material that the company possess.

Strength of the company is the integral part of the company and while analyzing the strengths of the company, write down the potential or the advantageous part that the company can perform well in comparison to the other competitor companies.

The strengths are the potential part that helps in driving more benefits and includes the unique ability of the company that differentiate it well from the competitor’s company.

In the strength section, write down the unique selling propositions of the company and note down the points related to your company that your competitor company see as your strengths. In the strength section, note down the facts associated with your company that helps in driving more of your sales.

The strengths of the company are only those factors that brings clear advantage to your company. In the case when your are producing high quality product same as your competitors are producing, then it is not strength, it is necessity. But when your product best quality products in compare your competitors, then it is your strength.

The the next thing to consider after strengths are the weaknesses part of the company. While doing the SWOT analysis, be honest about the weaknesses part of your company. Ignoring the weakness will only make you loss the opportunities to perform well.

Noting down the weaknesses will help you understand the weak part of your company and thus help you work on the required section and make that part your strength as well.

Like strengths, weaknesses are also the integral part of the company and it can be removed by working more on the required section. For example, not having proper skilled staff is the weakness of any organization but it can be removed by hiring the skilled staff.

Note down all the weaknesses associated with the company that can be lack of resources, poor management, old technology, or anything, think about it and then take action to overcome all the weaknesses and turn them as your strengths.

In this section, also consider the reasons where the competitor companies are performing well in compare to your organization, work hard in that direction and try performing to the same level or even the high level up to where your competitor companies are performing. Make strategy to perform better than other companies.

Opportunities are the external factor that helps the organization with the chance to prove themselves in the market. These are positive happening that helps the company to make their good reputation or take the brand name high in the market.

The opportunities are as good as strengths of the company but they generally arise due to the activities outside the organization. It is possible to generate the strength factor but the opportunities cannot be generated by the organizational activities. it happens by luck and the activities outside the organization. The company with their efforts can only take advantage of the opportunities and make good name in the industry.

Like opportunities, threats are also the external factor that arises from the activities outside the organization. They are the negative factor which often leads to the loss to the company and sometime can lead to the shut down of the company in the case when the company does not have any risk management strategy.       

The threats are also bad as the weaknesses of the company but it is possible for the company to fight against the weaknesses and eliminate it while the threat factors cannot be eliminated. The company can only manage the threats and reduce it.

So this was a complete guide on the SWOT analysis.   

                

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