SWOT Analysis helps organizations understand the current status and measure overall business performance using different Parameters.

Organizations work on SWOT Analysis to determine upcoming challenges and areas where needs to be focused to grow, also to address organizational level issues. By analysing One’s Internal strengths and weaknesses Plus external opportunities and threats, the areas which will help to grow can be focused easily.

SWOT stands for Strength, Weaknesses, Opportunity and Threat with respect to the market and peers.

A Company SWOT Analysis will look like-

1. STRENGTHS

Strengths Include the positive things about the business, which distinguish it from other peer businesses, advantages you have over other businesses, things which motivates staff and pushes towards the bigger goals.

Analyse your business USP (Unique selling proposition), areas where you are best in the market and add to the strengths.

Any aspect of business which brings you a clear advantage is only strength. for example, if your peer provides high quality product as you then it’s not a strength whereas if you are giving rewards, coupon on sale and peer is not then Low-cost is a strength to business.

2. WEAKNESSES

Like Strength, Weaknesses are fundamental features of your organization, so it’s always better to focus on your people, systems, end to end processes and how it can be improved.

Also, it is important to find out how your peers see you in the market, do they know about the internal weaknesses. This is the area where you need to evaluate and analyse why competitors are doing better and where you are lagging.

It’s vital to analyse your weaknesses in order to scale and grow at a high rate, so Be honest and gather all the information and analyse because it’s best to be realistic and face the weaknesses as soon as possible.

3. OPPORTUNITIES

It’s the place where your organization has a chance to develop or grow. They usually arise from situations outside the organization and require an eye to what might happen in future.

Opportunities might arise due to several factors like, the development in the market which you operate, technology you use, government policies etc.

Being able to spot and exploit the opportunity in any business can play an important role in terms of growth and scalability of business and can take you way ahead of your peers.

Also, as per your business you have to spot the opportunity, it might not be the game changer but small opportunities can increase the competitiveness among peers and motivate the staff to go for bigger goals.

4. THREATS

Threat includes anything which can negatively affect the business such as operational issues, cash-flow problem, supply-chain management, shift in market requirements etc.

It’s vital to address the threat and take actions against it before becoming a victim of them and lagging in the market.

Expose your business to external challenges before they become a threat, for example you can see that your peers are selling a product with low-cost and eventually you have to reduce pricing to survive. In this situation work on production and other aspects and stand in the market before high pricing becomes a threat.