SWOT-Strength, Weakness, Opportunities, and Threats is a simple yet powerful tool you can use to develop your business strategy. Strength and weakness are internal to your business, and opportunities and Threats are your business’ external affairs.
Your internal things are the things that you have control over, and you can modify, such as your team members, patents, intellectual properties, and location. Meanwhile, your external things consist of competitors, raw material cost, and customer shopping trends that you cannot change but take advantage of and protect against threats.
A SWOT analysis helps you identify your top strength, weakness, opportunities, and threats and organize them in a simple two-by-two grid. A SWOT analysis will provide you with a solid strategy that prioritizes the work your business requires to boost your company.
For a proper SWOT analysis, the company leaders and founders have to be deeply involved. For the best results, you should gather people who represent different aspects of the company, such as marketing, sales, customer services, and product management.
Here are a few ways you can do a SWOT analysis right.
Create SWOT Analysis Matrix
The foremost step for SWOT analysis is to create a SWOT matrix. It is a 2×2 matrix with one box for each area: Strength, Weakness, Opportunities, and Threats.
Gather the Right People
“The merrier, the better.” This saying fits perfectly in this situation. Gathering more people into SWOT discussion will make it easier, more robust, and help you find your loopholes. Along with the essential people of your company, such as founders and leaders, involving other unrelated people in the discussion will help you understand your business from their point of view.
If you include your employees and your customers in the discussion, you’ll get better strategies as they can provide valuable insights.
Host a Brainstorming Session
A thorough brainstorming discussion with your gather team can be tough. But it can provide you with valuable insights about your business. You can list strengths, weaknesses, opportunities, and threats together, or you can ask them to submit the list individually.
For your better understanding, you can use a few pointers for each category and ask a question regarding them. Discover your strength by asking positive questions about your business. Weaknesses are the negative traits of your business that are difficult to change, but you can always improvise them. Opportunities and threats are external things that may get out of control, but you can minimize the damage by creating a contingency plan.
Fill the Gaps
After all the brainstorming with your team, it’s time to start feeling the gaps. Ask everyone how vital each task in the list is. It will help you ease the process to see a clear pattern of the functions that need your attention. Filling the gaps will provide all the insights you need to consider.
In the end, SWOT analysis is not as easy as it sounds. With the rising popularity of the eCommerce market, SWOT analysis will help you stand out in the market and meet your goals, resulting in boosting traffic and increasing revenue.