SWOT analysis of a company. Pillar of any business strategy
SWOT analysis of a company
What is the SWOT analysis? How can it benefit us as a company? Is the SWOT analysis recommended to create a business? These are some of the questions that we ask ourselves the most when we hear this term and we are still not familiar with its meaning or application.
However, today you will discover its purpose and usefulness when applying it, as well as its main characteristics. It is the perfect tool to understand the current state, possibilities, risk and direction of a company, startup or project that you are going to develop.
Its application is based on 4 knowledge bases that we will develop as we progress in reading; weaknesses, threats vs. strengths and opportunities. Knowing these 4 premises, we will have everything we need to know the status of our company and how to grow with it in an increasingly competitive market.
Join us and discover how to do a SWOT analysis step by step without having to overcomplicate it. Collecting the necessary information and knowing how to take advantage of it later.
Weaknesses and threats when preparing the SWOT analysis
This part of the study allows us to focus on knowing the current situation of the company, entering to assess what its weak points are and the external risks that can affect its performance, to later focus on a direction that allows it to be more competitive.
In order to begin with its elaboration, we will review some of the factors that must be addressed and studied in order to gather all the possible information that allows us to obtain the most complete diagnosis.
What are your weaknesses as a company?
Arriving at this first and most important assessment, since we will start from a real and accurate point of view on the point in which we find ourselves. You have to be realistic in terms of possibilities, for that we will use the weaknesses that the company or project currently has.
We will have to collect and compare our state with the competitors in our sector. In order to gather as much data as possible:
Product weakness. When the cost of the product is higher than that of the competition, we lack logistics, the profit from the sale is lower than average or even the equipment is obsolete.
Organizational weakness. If there is no clear direction or the organizational strategy has not yet been defined, it is impossible to define any objective clearly.
Lack of training and experience. The staff must have skills and qualities to carry out their tasks. If they are not yet formed or at full capacity, this point is an internal weakness.
If any of these weaknesses are identified with your project or business, you should write it down and, in addition to taking it into account to define your strategy, focus on trying to find the necessary means to solve them.
Remember that the SWOT analysis helps to understand the situation, but it does not provide an instant solution to each vulnerability found. That is why it is essential to emphasize that patience must be a constant.