The SWOT analysis helps you to be more aware of your own company and recognize what is happening around your company. In the SWOT analysis you describe your company’s strengths and weaknesses, and you identify opportunities and threats affecting your company. With the use of your company’s strengths you can exploit opportunities, and by understanding your company’s weaknesses you can manage threats.
Download the SWOT Canvas to make a large printout and use this to do a SWOT analysis, for example in a brainstorm with colleagues. Download the Example for Coca Cola to learn about the practical application of the SWOT tool.
You can do the SWOT analysis by yourself, but it is often more effective if done by a group of people, for example with colleagues. By answering the questions below for strengths, weaknesses, opportunities and threats, you will be able to complete the SWOT analysis:
Strengths are the things that give you an advantage over others.
- What can your business do better than anyone else?
- What advantages does your organization have?
- What makes your business unique?
- What does your customer like about your business?
- Which unique or low-cost resources are being used?
Weaknesses are the things that place you at a disadvantage relative to your competitors.
- What could you improve?
- What causes you to lose sales?
- What should you avoid?
- What could customers see as weaknesses?
Opportunities are the elements in the environment that you can exploit to your advantage.
- What interesting trends are you aware of?
- What good opportunities can you spot?
- What would customers like to see different?
- Are there changes in technology, market or legislation you can benefit from?
Threats are the elements in your environment that could harm your business.
- What obstacles or challenges do you face?
- What are your competitors doing?
- Do you have a problem with debts or cash flow?
- Is a change in technology or legislation threatening your position?