A SWOT analysis is one that assesses the weaknesses, threats, strengths and opportunities in which the company is at any given time. It is an essential and basic analysis method to be carried out at the beginning of any business, and it should be elaborated from time to time to know what situations we should avoid and which we can take advantage of. Here we explain how to do a SWOT analysis easily and quickly.
Steps to follow:
1. This type of analysis is basic in any company and its use is very widespread since it can be applied to any type of company, whatever its size or activity. It can be done independently for each of the company’s departments or globally for the entire company.
2. The SWOT or SWOT analysis is divided into two main parts:
- Internal analysis: it is composed of the strengths and weaknesses of the company. In this section we have to analyze key points such as production, human resources, marketing or financial situation.
- External analysis: there are threats and opportunities. We will have to take into account the market situation of our business sector, current legislation, competition, suppliers or the environment.
3. The strengths are those intrinsic to the company circumstances that allow us a competitive advantage over other companies in the sector. In other words, we are better than the others in one or more specific points, so we will have to promote them.
4. The weaknesses of the internal analysis refer to those situations or areas in which the company does not perform as well as its competitors or worse than we could. That is, they constitute a barrier so that things could work even better, so once they are located, we will do everything possible to eliminate them.
5. From the opportunities we can say that we will always find in our sector a market niche that is not covered or some market situation from which we can take advantage of to be better than our competitors. It is important to analyze the market and the position in which the company is in order to find advantages that allow us to improve.
6. In threats, we will analyze all those circumstances that from the outside can put the survival of the company or an improvement of its capabilities at risk. Some threats could be that the sector is in crisis or that a competitor of ours is growing a lot in a short time, since both situations would harm us.
7. Depending on the conclusions that we have drawn clear after the SWOT analysis, once we know the business situation, we will have to implement measuresthat allow us to take advantage of opportunities, reinforce our strength, eliminate weaknesses and avoid threats. It is convenient to focus on one or two aspects of the above in order to apply our measures more efficiently.