A strategic ally that companies have is the SWOT analysis. This administration tool allows to find and know exactly the internal and external elements that surround the organization.
Thus, When looking for situations that help make decisions, SWOT is a very useful functional element. This will allow you to set the goals more real.
To help you become an expert in strategic analysis, we have prepared this article for you. We will show you all the information related to a SWOT analysis, from its characteristics to the steps you must do to create a correct analysis.
What is a SWOT and what is it for in business?
SWOT is an acronym for weaknesses, threats, strengths and opportunities that a person or a company has in a certain situation with respect to a market in which it moves. That is to say, It is a technique that is used to know exactly the context that surrounds an individual or organization. When you get to know all the variables that exist, the company manages to set the objectives more accurately in order to achieve them.
This will make it possible create a work plan in which you take advantage of the opportunities you have, defends against threats, fortifies its weaknesses and takes advantage of its strengths to obtain the greatest amount of participation in the target market. He SWOT will make it easier for them to take loans in investment projects and analyze the internal rate of return or IRR more accurately. It establishes the parameters and general conditions of the patrimonial structure to carry out the project.
SWOT Objectives What is the main intention of carrying out this analysis?
The main reason why a company should perform a SWOT analysis is because from this information you can obtain correct answers to certain parameters. This is without neglecting the general objectives that we have mentioned in the previous paragraphs. For example, if sales have fallen you can tell from the threat structure if there is a new competitor or substitute item that it has entered the market and the company has not realized it.
Another of the objectives that the SWOT it is know the limitation barriers that a market has to access it. At this point it could also be analyzed if the company has a weak infrastructure to enter. So that the objective in this case is to find the reasons why a company is not suitable to develop in the target market that has been raised.
When the analysis results are established SWOT can be implement policies to make decisions correctly and in this way find the best way. It should not be forgotten that the resources of a company are very valuable, so it is necessary to advance without compromising the future.
What are the most important advantages of doing a SWOT in your Social Media plan?
When a SWOT analysis is performed, the following benefits are achieved:
- They know each other precisely what is the capacity of the company to face or maintain strategies commercials in a certain target.
- It allows know the available resources The company has, so it can set more demanding objectives.
- It is also achieved establish the circumstances under which sales have decreased or costs increased. In this way it is possible to modify the degree of profitability that the shareholders want to obtain and thus establish a certain price.
- Not only can you analyze factors related to financial results, but you can also study the resources that pose threats for general control of the organization.
- Knowing the weaknesses that a company has, it also allows making decisions to correct them and thus turn them into opportunities that improve the company's situation compared to the competition.
- Technological changes that exist in the market can be more precisely known when an analysis is made SWOT. Therefore, this technique allows us to find opportunities that help improve computer systems.
- An important advantage that an analysis has SWOT it is make the most of external situations that occur in the market. For example, when there are short-term breaks in the economy or in population health, the company can produce different elements that will help the country's inhabitants.
- With a study SWOT you can know the movements made by market competitors, as well as the existence of complementary or substitute products that threaten the articles themselves.
SWOT pairs What are these variables and what are they for?
He SWOT analysis is done by matrix of 4 elements in which all the situations that are involved in each one of the variables of the method must be included. Therefore, different types of decisions can be made according to the place an element occupies in two SWOT variables. This set is called pairs.
We will see below what are the pairs that are formed in a SWOT matrix:
When an item is found in the strengths and opportunities quadrant, it is an ideal situation. The company must take actions to develop the product, strongly consolidate the business model or adapt the different articles to this new situation. The company can also make decisions to increase its presence in different geographical areas adapting to each one of them. This will allow increase revenue and therefore, get higher profitability.
Adaptive pairs refers to the decision-making that managers of a company must face when a situation presents itself as a weakness that the company has, but at the same time it is an opportunity to develop new paths. In this case, it is recommended to obtain the best advice from professionals to reorient the line of action that the organization had been taking until then.
When they exist strengths within the company, but at the same time that same situation represents a threat For the company, it is necessary to face the risk based on internal resources. For this, it will be convenient to have defensive professional suggestions that generate corrective actions in the shortest possible time.
In this case, a weakness of the company is also a threat found in the market.. To solve these problems quick action is needed to turn weaknesses into strengths and thus be able to survive external obstacles. After this, it will be necessary to adapt to combat threats.
Learn step by step how to make a SWOT like a marketing expert
The steps you will need to take to make a SWOT without errors are:
Identification of internal and external elements
The first thing you should do when you want to carry out an analysis SWOT is to study all the elements that you have within your company. For this, you will need to survey all the internal areas to know how human resources are composed, what their tasks are and what positions they occupy. You will have to compare these results with the organizational culture that you intend. This will help you correct deviations and take into account criteria that you could incorporate.
What you will have to do now is See specifically the production departments and the commercial area. This will help you understand what the manufacturing process is like for raw materials to become finished products. Then, You will study the procedure that is carried out to sell, from taking orders to their effective delivery to the customer. When you've done this deep inspection of all your internal components you will realize that there will be things that you must change.
So that you will have to make decisions to be effective. Then, you will know that there are operations that you must maintain, since you are doing it well and you have the correct infrastructure. So the benefits you get will help you carry out the stated objectives. After the first stage, you will have to start studying the market in which you move or to which you want to reach. For this, the first thing you should know is the level of billing and production that it has.
This will help you determine the size of the client group and so you can compare it with your productive capacity. Once you are clear what the size is, You will have to analyze the competitors that are in it. In this case, you should know what their strengths and opportunities are.
Also, you're going to have to inspect all substitute products on the market. When you have this information you will realize that there will be opportunities that you should take advantage of, as well as threats of which you must make decisions so that they do not affect your company.
What you should do now is to enter all the elements that you have identified, both internal and external, from the previous step and place them in the SWOT matrix. This will help you find the peers that will be associated with successful decision making, adapting reactive tasks and the risk you have.
Once you have grouped the elements in pairs, you will have to carry out a strategic planning that will allow you to carry out the stated objectives. For this you will have to project for each of the deviations that you have found the execution time and the tasks that must be carried out. Then you will have to analyze those situations that you do not have to change and that represent a strength of your company.
For this case, you must plan how you will advance in decision making without affecting these areas they are working well. Finally, you will have to choose all those activities that will help you avoid threats that exist in the market and that put your company at risk. When you have all these items ready, you will have to assign them to the different departments which will have a person in charge for each plan.
Next, you will have to carry out the execution and at the same time you will have to control that execution. Keep in mind that there will be deviations between the real and the planned. So you will have to consider processes for the correction of these deviations. You can do this with the creation of areas that help you quickly reach the stated objectives and stay in the market as a leader.
Tips to make a SWOT more effective for your company or personal brand
Pay attention to the following tips that will help you make a more effective SWOT, either for your company or personal brand:
Try to be as objective as possible
Perform the SWOT analysis with the head and not with the heart. Although this is difficult for an owner, since he has subconsciously deposited emotions in commercial entrepreneurship, it is necessary that the elements that are detected in any of the sections of the matrix must be as real as possible. When this is done, the different components can be determined more effectively.
Don't underestimate the competition
This is a very common mistake that occurs when doing a SWOT analysis. People they tend to underestimate the behavior of other competitors in the market, even more so when they are not the leaders. You should keep in mind that there are companies that have strategies that are oriented not to occupy the first place, but represent a threat to your products and to the existence of your company. So these organizations are in the places they want, but not because of lack of capacity.
Don't believe everything they tell you
When you do the internal analysis to determine the strengths and weaknesses you may have, it is recommended that you do it as directly as possible, thus avoiding intermediaries. This will help you see another much more real panorama and you will be able to know if the organizational culture that you have wanted to implement is actually being met.
Keep in mind that you can be wrong
One of the factors that influence the strategic analysis is that errors arise when the information survey is carried out. Because of this, keep in mind that a correct and detailed review of all the elements will be necessary They have been inspected so that you do not make mistakes in the study.
Make decisions based on SWOT
By this we mean that when you have the analysis done you must make decisions based on the elements that emerged from the SWOT. Thus, you do not have to consider past situations that you have already overcome and that do not impact this new study. But you must be careful because they could re-emerge, so you should decide whether or not to include them as threats or weaknesses in these types of situations.
List of the best tools to make a SWOT that every Community Manager should know
We will show you below the best computing tools whatWhat can you use to make a analysis SWOT.
Pay attention and choose the one you like the most.
This is a free tool that was designed by the General Directorate for Industry and SMEs, belonging to the Ministry of Industry, Commerce and Tourism of the Government of Spain. Allows the creation of a SWOT analysis in a few steps, you just need to register via email and access a database of similar tasks. Through this matrix You can access your company's strengths and weaknesses quickly.
You will find in this image editor a wide variety of templates that will help you choose the best creation to perform a SWOT analysis. For this you will have to register, edit the template and then you can download and share with any user. The advantage of this tool is that it has unique designs that will easily adapt to the corporate ideas of your company.
This is an online platform in which you must choose the template you want and then it will help you, with examples from other companies, to put together a real analysis SWOT for your own project. In this way you will have a colorful diagram that will include the most specific information possible. When you have the pairs of SWOT armed you will realize in a short time what will be the decisions that you will have to make to correct and take advantage of the existing circumstances.
Premier Business Plan
It is an application that is available for iOS mobiles and its download has a cost of around € 10. With this tool you can make SWOT analysis in a fast and simple way, since you will have functions that will allow you to detect the true elements that you must include. In addition to the strategic analysis, you will also have sections that will help you make a complete business plan with all the internal and external elements that surround the company.
With this iOS app you can create a SWOT analysis perfectly. This is because you will find all the necessary tools to detect internal and external factors that are beneficial and harmful to the organization. Your download costs approximately € 10. This allows access to functions and will help you generate a complete business plan based on the objectives you have set.