A SWOT analysis is vital for any business to flourish. It should be used as a guide in a business of “what to do” and “what not to do”. “S” stands for Strengths, “W” stands for Weaknesses, “O” stands of Opportunities and “T” stands for Threats.
Strengths are related to your business’ capabilities, advantage over your competitors. This also includes your resources, assets as well as target market. Your business’ experience, knowledge and data will allow you to have an advantage over your competitors. Your business’ location as well as the price and value of your product or service play a big role in your strengths. How you choose to communicate your systems and processes leads to the strength of your business.
Weaknesses are related to your business’ lack of capabilities, your gap in competitive strengths and reputation. Financial pressures relating to cash flow and cash drain add to your weaknesses of your business. How your business handles stress says a lot about your business and how you can cope in the industry.
Opportunities relate to market developments. Global influences, industry or lifestyle trends, geographical import and export, major contracts, tactics and surprises that you as a business can use at an advantage to gain to your brand.
Threats relate to market demands, competitive intentions, obstacles to be faced, poor management strategies, loss of resources and overall aspects that could lead to an overall fail of your business.
Regardless of whatever your product is or service you provide, a SWOT analysis is a beneficial guide to use when you analyse your business. This will help aspects of your business like what to improve on or eliminate.
