What Is a SWOT Analysis and Why Your Business Needs It

SWOT analysis

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Surviving as a business in this day and age is rather tough. Thus, it is only natural that more and more companies are looking for new and innovative ways to get ahead of the competition.

SWOT analysis is one of the most recent trends and it would seem like it is going to be staying for a while longer.

SWOT is an acronym that stands for strengths, weaknesses, opportunities, and threats. Everything may appear pretty simple on the surface, but once you start to read such articles like “Everything You Need to Know About SWOT Analysis” by Oberlo, the situation certainly changes.


What SWOT Provides

It is crucial to understand where you stand with your company in the contemporary market. Where you can make moves and spread your influence. Any knowledge goes a long way, and that is exactly what SWOT analysis, when properly carried out, offers to a business.


How it Works

swot analysis chart

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The analysis focuses on the comparison between internal factors (strengths and weaknesses) and external factors (opportunities and threats). 

Internal factors are everything that you control inside the company, such as your employees, property, etc. Meanwhile, external factors are those things that are out of your control, like economic changes, market fluctuation, trends, competitions, etc.


Why You Should Do This Analysis?

If you are looking to advance with your company, you need something that lays unbias information in front of you and tells you how things really are. Regular analyses also help in getting your brain to work in other methods and train it in a way that can help a lot.

Whenever you are in a pinch and unsure what the next move should be, a SWOT analysis will help find the right solution. 

For instance, if you are debating whether getting a new facility is a wise investment or not, SWOT will be able to give you the correct answer. Finally, there may be some factors that you cannot predict as well, and knowing about them beforehand will definitely be of great use. After all, whenever so much money is involved, it is always wise to access as much information as you can and decrease the odds of making a poor decision.


Who Are The Perfect Conductors?

swot analysis exam

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The biggest companies have people who specialize in such analyses and work with data management. Of course, it is not something that everyone can boast of having, so if you do not have a person like this on your team, you have two options.

The first one would be looking to hire someone who can take care of everything from start to finish. Be it a full-time position or a freelancer, a professional is always a good addition to the team. Even more so when you are looking to deal with something as important as your company’s SWOT analysis.

The second option is to involve multiple layers of the company and get them to work. While this does save you the need to look for a new employee, you need to consider the fact that those who will be involved in the process have to spare some of their precious time, which, ultimately will be the company’s time. 


It Is Tricky

You may find yourself in a situation where doing analysis like this one takes too much toll on everyone and regret the decision of getting others involved rather than hiring another person.

But then again, it can be a bit of fun having everyone involved and showcasing their creative side. If your company is rather small, it is obviously going to take fewer resources to conduct a proper analysis. Think which method would make the most sense and go with that one over anything else.


The Results

swot analysis charts

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Once you are finished, the information in front of you is going to be extremely useful provided that you know how to use it to your own advantage. If you have never done SWOT analysis, you will definitely be surprised about everything it has to offer. 

Just think about it this way. The business market is changing all the time and you have to be at the top of your game to survive. Even a small misstep could be lethal. At the same time, those who dedicate themselves to finding new solutions and work hards towards this goal will certainly have an advantage. Also, be sure to not limit yourself to just a single analysis. This ought to become a regular thing. 


In conclusion, this article should work great as an introductory piece to everyone who wants to find out more about SWOT analysis and all the great things it has to offer. But do not stop here. Once you are finished reading, look to take action and get the hands-on experience.

Jeff Butler

Jeff Butler Internationally respected speaker and consultant, Jeff Butler helps bridge generational gaps between Millennials and companies looking for their talent and patronage. Butler has quickly built his reputation as a memorable presenter with tangible solutions for attracting, retaining, and engaging Millennials as employees and customers. Within just the past three years, he has spoken at two TEDx events and multiple Fortune 500 companies such as Google, Amazon, and LinkedIn.


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