When you want to run a business, there are several stages that you must do so that the output is produced as expected. One of the tips for running a business is to run a SWOT analysis.
By doing the business analysis, then you can find a plan and solution to the problems faced by the business.
To understand about the techniques that you can use for online and offline business analysis, please see the explanation in the following article!
Understanding the SWOT analysis
Some of the objectives of this analysis include:
Map Important Factors
You can find and map the various important factors that are present in the business plan or strategic. You can look at internal factors such as strengths and weaknesses, as well as external factors of the business, in the form of opportunities and threats.
Know the company’s position in the competition
This method of analysis can help you in knowing how to draw up a plan based on these four factors. So you not only see your own position, but also the state of competitors who compete.
In addition, you can also analyze competitors, so the results of the analysis can help you beat them in the market competition.
Prediction Of Potential Problems
Because you already know the various potential problems that may be present from the aspect of threats and weaknesses, in the future you can be more observant to find various possible problems that arise.
The Company Can Develop
The results of a mature analysis can help you get various opportunities for the company to develop, because you already know what strengths and opportunities are available.
Help To Make A Decision
According to its function to plan strategies and solve problems, this analysis really helps you to take various decisions in the company.
Components of SWOT Analysis
- Strengths:
- These describe what an organization excels at and what sets it apart from the competition.
- Examples include a strong brand, loyal customer base, robust financials, or unique technology.
- Weaknesses:
- These represent areas where the organization falls short or faces challenges.
- Common weaknesses might include outdated infrastructure, inefficient processes, or lack of skilled personnel.
- Opportunities:
- Opportunities are external factors that can benefit the organization.
- These could be emerging markets, technological advancements, or changing consumer trends.
- Threats:
- Threats are external factors that pose risks to the organization.
- Examples include intense competition, economic downturns, or regulatory changes.
Steps of SWOT analysis
To be able to solve problems and get the best strategy for business, then some steps that must be done are:
Define Goals
The first step that you must do is determine goals or objectives, because it acts as the basic foundation for every business step that will be taken.
These objectives must be detailed, rational, and clear, because:
Detailed goals, helping you know the depth and detail of the goals to be achieved
If the goal is rational, then you can determine whether it can be achieved responsibly
Clear goals can help you direct your efforts to be more consistent, because the foundation is clear
Create a matrix or Diagram
Then you have to map the four elements of the SWOT by making a matrix or diagram.
From the outline of the diagram, you can see each of the factors from these four aspects of the analysis. In general, you will find an overview of internal factors through strengths and weaknesses and external factors through opportunities and threats.
Do The Brainstorming
Make a planning team when doing this analysis. The ideal team is made up of people from diverse backgrounds, such as Law, Economics, Communications, and even architecture.
The more diverse the people on the team, the more detailed your analysis will be. From this team you can do brainstorming and find various actual issues.
Ask questions based on the SWOT analysis
If you have found important issues through brainstorming, you can finally formulate important questions about the four aspects of SWOT. The questions can vary according to your business needs.
SWOT Analysis example
Some examples below can be your guide and adapted when you want to do your own analysis:
Personal Analysis
Like the previous explanation, you can use this analysis to better recognize and develop yourself. Examples of its application:
Strengths: good communication skills, creative, punctual, smart
Weakness: easily nervous, unable to multitask, difficult to adapt to new people
Candidate must possess at least a bachelor’s degree, master’s Degree / Post Graduate Degree, Engineering (Computer / Telecommunication), Engineering
Threats: there are colleagues whose abilities are better, competition in getting a position at the top
Analysis Of Service Companies
If running a service business, then an example of travel Services analysis:
Strengths: 60% market potential in Jabodetabek, online ticket booking, professional workforce, roadworthy vehicles
Weakness: rental price is quite expensive, limited vehicles, expensive vehicle maintenance costs
Opportunities: promotion, expanding marketing network, utilizing the latest technology
Threats: more and more similar services, chaotic traffic conditions
Snack Business Analysis
To analyze your snack business, follow these examples:
Strengths: unique brand, professional workforce, clear distribution network, good marketing strategy
Weakness: less advanced product packaging, high prices, Limited variants, uncertain target market
Opportunities: adding employees, improving packaging design, expanding online marketing, adding product variants
Threats: the number of counterfeit products, fierce competition, unstable raw material prices, the possibility of receiving a lawsuit because the brand has not been registered
The examples above can be your guide and can be changed according to your business field and individual needs.
Conclusion
When you want to develop yourself personally and professionally, as well as business, then the SWOT analysis is the right choice. You can recognize internal and external factors in yourself or business, so you can create a better strategy in the future.
