SWOT is an analysis which opens the area of opportunity according to your strengths and also intimate you the area of threat to focus on your weakness for improvement.
Along with SWOT Analysis now a days PEST is also become very popular analysis term. Both of them has their own and unique advantages and different focus. Lets find out how SWOT Works in this post followed by post for PEST.
S – Strength
O – Opportunity
T – Threats
P – Political analysis
E – Economic analysis
S – Social and analysis
T – Technological analysis
In simple words “SWOT” analysis measures a business unit or proposition, whereas a “PEST” analysis measures the market potential and situation. SWOT is very useful to evaluate core focus on these Key Area:
A. Product (what are we selling?)
B. Process (how are we selling it?)
C. Customer (to whom are we selling it?)
D. Distribution (how does it reach them?)
E. Finance (what are the prices, costs and investments?)
F. Administration (and how do we manage all this?)
Lets see the Standpoint and key objective area of SWOT Model:
Objectives of SWOT Analysis:
Analysis for company to identify position in the market, commercial viability, etc
Analysis for method of entire sales distribution
Analysis for product for brand evaluation
Analysis for business idea and creativity
Analysis for strategic option, such as entering a new market or launch of new product
Analysis for opportunity to make an acquisition
Analysis for potential partnership objectives
Analysis for changing input unit or a supplier
Analysis for outsourcing, activity or resource
Analysis for an investment opportunity within company budget and limitation
Key area of Study to define objective:
Objectives of Strengths Analysis
Analysis for key Advantages of proposition.
Analysis for end to end Capabilities.
Analysis for core Competitive advantages.
Analysis for USP or USPs (unique selling points).
Analysis for Resources, Assets, People and Manpower.
Analysis for Experience, knowledge,Tools, data and contents.
Analysis for Financial reserves and returns.
Analysis for Marketing – reach, distribution, awareness.
Analysis for Location and geographical conditions.
Analysis for Price, value, quality parameters.
Analysis for Management cover, succession.
Analysis for Accreditation, qualifications, certifications.
Analysis for Processes, systems, IT, communications.
Analysis for Cultural, attitudinal, behavioral.
Analysis for Innovative aspects of the project/product/services.
Objective of Weaknesses Analysis
Analysis for possible Disadvantages of proposition.
Analysis for minor and major Gaps in capabilities.
Analysis for Lack of competitive strength and capabilities.
Analysis for Reputation, presence, goodwill and reach.
Analysis for Financial limitations
Analysis for Own known vulnerabilities.
Analysis for Timescales, deadlines and pressures.
Analysis for Cash flow, start-up cash-drain.
Analysis for Continuity, supply chain robustness.
Analysis for Effects on core activities, distraction.
Analysis for Reliability of data, plan predictability.
Analysis for Morale, commitment, leadership and Accreditation.
Analysis for Management cover, succession.
Analysis for Processes, Methodology and systems etc.
Objectives of Opportunity Analysis
Analysis for Current and Future Market developments
Analysis for Key Competitors’ vulnerabilities
Analysis for Industry or lifestyle trends
Analysis for Technology development and innovation
Analysis for Global influences and economy
Analysis for New markets, vertical, horizontal
Analysis for Niche target markets
Analysis for Geographical, export, import
Analysis for New USP’s
Analysis for Tactics – surprise, major contracts, etc
Analysis for Seasonal, Trend, weather, fashion influences
Analysis for Business and product development
Analysis for Information and research
Analysis for Partnerships, agencies, distribution
Analysis for Targeted Volumes, production, economies.
Objectives of Threat Analysis
Analysis for Core Political effects
Analysis for Overall Legislative effects
Analysis for Environmental effects
Analysis for IT development scope
Analysis for Competitor intentions
Analysis for Market demand flow
Analysis for Seasonality, weather effects
Analysis for New technologies, services, ideas
Analysis for Vital contracts and partners
Analysis for Sustaining internal capabilities
Analysis for Obstacles faced
Analysis for Insurmountable weaknesses
Analysis for Loss of staff on performance base
Analysis for Sustainable financial backing
Analysis for Economy status at home, Offshore & Onshore.
Once we define objectives , we need to start analysis for SWOT. where we need to focus on these parameters:
Analysis of strengths
Analysis for End-user sales control and direction.
Analysis for Right products, quality, branding and reliability.
Analysis for Better product life and durability.
Analysis for Spare manufacturing capacity.
Analysis for Superior product performance vs competitors.
Analysis for Some staff have experience of end-user sector.
Analysis for Have customer lists and records.
Analysis for Direct delivery capability.
Analysis for ongoing Product innovations
Analysis for Processes and IT should capability
Analysis for committed and confidence level of management
Analysis of weaknesses
Analysis for Customer lists not tested.
Analysis for gaps in range for certain sectors.
Analysis for opportunity of becoming small player.
Analysis for experience of Marketing
Analysis for ability to supply products internationally .
Analysis for need more sales people.
Analysis for limited budget.
Analysis for No pilot or trial done yet.
Analysis for Don’t have a detailed plan yet.
Analysis for Delivery-staff need training.
Analysis for Customer service staff need training.
Analysis for Processes and systems, etc
Analysis for Management cover insufficient.
Analysis of Opportunities
Analysis for Could develop new products.
Analysis for Local competitors have poor products.
Analysis for Profit margins will be good.
Analysis for End-users respond to new ideas.
Analysis for Could extend to overseas.
Analysis for New specialist applications.
Analysis for Can surprise competitors.
Analysis for Support core business economies.
Analysis for Could seek better supplier deals.
Analysis of threats
Analysis about Legislation could impact.
Analysis about Environmental effects would favor larger competitors.
Analysis about Existing core business distribution risk.
Analysis about Market demand very seasonal.
Analysis about Retention of key staff critical.
Analysis about Possible negative publicity.
Analysis about Could distract from core business.
Analysis about Vulnerable to reactive attack by major competitors.
In short SWOT is very useful to know about our own capability and limitations. SWOT also identifies the roadblocks and scope of opportunity to grow higher and faster at focused area of organization or individual.