Article by: Sara Pantaleo
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
What is a SWOT Analysis?
A SWOT is a tool or framework that enables you to easily assess each of the four key areas that should always be at the forefront of your business strategy.
The SWOT analysis is an essential tool for any business to use, as it helps them identify what they do best and how they can improve in future. It also allows companies to see areas where competitors might be able to take advantage if protections aren’t put into place immediately-helping. You stay one step ahead!
The SWOT analysis is an examination of both internal and external factors to see how they can be used to your advantage. Some of these will come with control, while others may not. Still, it’s wise that wherever possible, you should take action based on what information has been compiled during this process – even if logging everything into a spreadsheet or database will help give insight into where there might still be unexplored opportunities!
Let’s explore how to carry out a SWOT analysis in this article.
When you Should use a SWOT Analysis
The SWOT analysis is an excellent way to take stock of your position before making any significant decisions or creating a new/ updating an existing strategic plan. Throat clearing for new initiatives, policy changes or pivots can be done strategically by doing this analytical tool first so you know where all the strengths and weaknesses lie. It’s a great tool to use for identifying any blind spots that are easy to miss when you’re busy in the everyday operations of the organisation.
It’s also a good idea to include your team in the SWOT process; this way, you can ensure no stone is left unturned.
Using your SWOT Analysis to Inform your Strategy
Performing a SWOT analysis is always valuable. But, like reading a self-help book and not putting anything into action, you’ll see no improvements. So the final and most crucial step is to create objectives and an action plan off the back of your findings so you can execute improvements immediately.