SWOT stands for Strengths, weaknesses, opportunities and threats and it is a perfect business planning model for each kind of company. This analysis can be used in any kind of decision making process either you run a for-profit organization or non-profit corporation. In simple words, this analysis is done for new products that one wants to introduce in the market.
This way we can say that this is more of a marketing tool than a business running strategy. With SWOT analysis, you get to know your strengths, the weaknesses of your competitors, possible opportunities for your company in the market and potential threats from your competitors.
You can also say that with SWOT analysis, you understand what you should say to your potential buyers in your marketing campaign and with this analysis, you get enough help to answer the two most critical questions asked by the buyers including; what makes you different from others and why buyers should switch to your product.
Importance of SWOT Analysis:
There are hundreds of reasons why the SWOT analysis is so important in the business world and why companies are using this technique for regular basis but here we will discuss only a few of them. First of all, the most important thing about SWOT analysis is that this is free of cost. Any person who understands your business and its operations can conduct this analysis in the market and as you know that this analysis includes the reviews and suggestions from the potential buyers too, this means you don’t need to pay anything to the participants in your study.
Secondly, another best thing about SWOT analysis is that this technique can be implemented in any kind of situation with as much or as less time as you have. For example, you have a meeting coming up in 2 days and you don’t have much time to conduct a full analysis or market research, you go with SWOT analysis that can be done overnight. It will just require a person who understands your business and its operations in a better way.
Application of SWOT Analysis in Business:
It is a common mistake or misunderstanding that people always assume SWOT analysis is only for the companies and organizations that work for profit where in reality, the usefulness of SWOT analysis doesn’t keep it limited to be used in non-profit organizations either. It doesn’t matter what kind of business you run or what products you offer, you can always use SWOT analysis in any kind of decision making process. Moreover, this analysis is not only for businesses but government agencies, non-profit organizations and even individuals can use this analysis for making decisions on regular basis.
Here is a list of the possible applications or uses of SWOT analysis for your business:
- Decision making
- Strategic planning
- Strength building
- Understanding the behavior of the market
- Minimizing the risks and weaknesses
- Seizing opportunities
- Counteracting possible future threats
- Addressing to individual issues in your company and in the market
Here is preview of a Free Sample SWOT Analysis Diagram created using MS Word,
Here is download link for this SWOT Analysis Diagram,