Let’s discover the external threats that will condition your activity
The next point of our SWOT analysis covers and reflects all the information about the environment that surrounds the company, including the risks and threats that affect the company and its performance.
In this section we will have to gather the following information, providing the data you have and filling in the rest with the objectives you want to achieve in the medium-long term.
Sector. Investigate the sector where you develop, to detect possible new market opportunities and learn about current trends. You can include a list with references to your direct competitors, as well as those that dominate the sector.
Market. Analyze what the user is looking for, find out what their needs are and the level of demand that currently exists. Study the evolution and obtain data on their behavior and options in order to build customer loyalty.
Competence. It is an extension of the first point, only here we will focus solely on analyzing what our competitor does and how it sells. Gather prices, their offers and advertising actions to later analyze them.
Around. A small compilation with the factors that, even though they are not under our control, can influence the growth of your project. We talk about location, regulations, legal permits and even the technological situation of your sector.
With this list of external factors that could affect or benefit your company, it is time to gather them together and get to work to study them, compare them and obtain a vision of our current situation.
The SWOT analysis for a company is fundamental, since, with all the points that you have just seen, it is much easier to establish a strategy to act in one way or another, depending on the needs and situation of the project.
Now we know our weaknesses and threats thanks to the SWOT analysis
Being aware of the risks to which we are exposed as a company and of the vulnerabilities that we have in its structure, what can be a barrier that prevents us from considering the information to reverse the situation?
It doesn’t matter if you hardly have any data, since you may still be in the launch phase of the project and you hardly have resources, material or employees, but it is essential to gather all the information you can.
With a list of the external conditions, the aggressiveness of the competition and even the weak points that prevent us from being competitive, it is time to consider the first steps of restructuring and focusing on new objectives.
And how can we define our strategy based on the information we obtain from our SWOT analysis?
It is much simpler than we imagine. The SWOT analysis is basically a self-diagnosis of the company’s situation. Just as it reveals our weaknesses, which we must take advantage of and correct, it also shows us the aspects that we must take advantage of to make ourselves stronger.
If the study on the acceptance of our products in the market is good, we see that the competition does not surpass us by far and the investment conditions allow it, we will know that it is a good moment to define a more daring, even aggressive action strategy.
On the contrary, if we detect that we are still weak in terms of competitiveness, it may be time to reorganize ourselves internally until we achieve greater efficiency and quality in the product or service we offer. This allows us to reinvent ourselves and look for new customer profiles that are more profitable, at least for now.
Sometimes being more aggressive and lowering prices is not the best solution. There are many other ways to convert and take advantage of the opportunity again when the necessary conditions are met to do so.
And what are the strengths and opportunities? Discover which strengths will help you in your strategy
The SWOT analysis must also reflect the strengths for which your company should be proud and obtain performance.
They are the key to taking advantage or not of the different opportunities that the sector and environment offer you.
Strength in production. It is considered a strong point to have the adequate infrastructure, the necessary technology and the means to launch a quality product.
Strength in financing. Enjoying a healthy economy and capital to continue investing in advertising and innovation is a very remarkable aspect. This allows you to get ahead of the competition with better services and a greater presence.
Strength by reputation. Having experience and satisfaction in the sector allows the product or service to be valued positively by the consumer. Something that gives an advantage over the projects that are starting now.
These types of strengths are the ones that will determine that you carry out one action or another, more aggressive or less. Having these advantages in the SWOT analysis allows you to reorganize in a more effective and competent way.
And now that you are clear about all these concepts of your new study and infographic on the state of your company, we will resolve the question that we have all raised on occasion.
Why is a SWOT analysis necessary?
Imagine that tomorrow they assure you that your company’s most direct competition is going to launch a special promotion that will take away half of your current customers. Would you try to take advantage of this leak to get ahead of yourself?
The SWOT analysis, in addition to giving us a detailed impression of the company’s situation and its possibilities, allows us to act in one way or another, knowing the internal strengths and weaknesses.
In this way, you can avoid external threats and take advantage of external opportunities, such as new financing, distribution and manufacturing channels. You will be able to orient yourself towards more real and achievable objectives, and from this point, grow.
It is not an obligation, but the SWOT analysis provides a global impression of the state in which you find yourself and allows you to obtain performance both from the good things and from the aspects that you should reinforce.