Swot analysis example. Swot analysis using the example of a company

If you think that SWOT analysis is a boring theory from a marketing course, you are mistaken! Where do you start to analyze the situation in your business, what do you do first when you don’t know what to do or what to do correctly, how you weigh everything "For" And "Against"? Advice from friends and colleagues, find a solution on the Internet, act on it and boom? This is not enough, you need a real tool that will help you identify the strengths and weaknesses of the project and make the right decisions.

SWOT analysis will help you in this matter. You can not only weigh risks with its help, but also build strategies, do audits, and analyze complex decisions. In this article we will take a detailed look at the capabilities of this tool using an example and learn how to use it in practice.

A little history

SWOT analysis was first introduced to the world in 1963 at Harvard by academic Kenneth Richmond Andrews. At the conference, for the first time, this method of strategic planning was introduced into the arsenal of modern business, which is used by all marketers, analysts and business owners today. It is a mandatory stage of strategic planning and an excellent tool for auditing a company.

This method of analysis allows you to look at the business as a whole, at a separate cell of the company, business process or product from the position of weaknesses and strengths, advantages and threats, both internal and external. And also, many people use it in everyday life. Let's learn how to use it.

S.W.O.T. is an abbreviation from English of four words:

S (Strengths)– strengths. When describing the strengths of the object being analyzed, you should describe more of its own internal advantages. This is easy to do if you perform this task as a team and using the Internet. The more broadly and objectively you look at the subject of analysis (company, process, product, etc.), the more likely it is that a SWOT analysis will produce effective conclusions, so do not assign this task only to marketers or managers.

W (Weaknesses)- flaws. A similar situation with the shortcomings, remember all the disadvantages, all the unpleasant moments associated with the subject of analysis and write them down. Everything that weakens it and makes it unattractive, burdens it - fix everything. Objectively and only regarding the analyzed object.

O (Opportunities)- possibilities. Describe what opportunities the external environment gives you? What favorable external factors accompany development help your subject of analysis develop?

T (Threats)– threats. Record facts that negatively affect the development or promotion of your object of analysis from the outside. In most cases, this addresses the competitive environment and changes in the external market that may threaten you.

SWOT Analysis Template

The analysis is performed by compiling a table or 2 by 2 matrix in which evaluation criteria are entered in each cell, for example:

You can copy this example template into MS Word and print it for work.

There is an opinion that SWOT analysis is a superficial, inaccurate analysis tool based on the subjective opinion of one person. However, if you conduct an audit by a team of specialists from different fields, you can completely achieve an objective picture of the situation.

SWOT analysis using the example of a company

Now we will fill out the SWOT template or matrix with data from one company X, which is engaged in the auto business (selling new cars, spare parts, and repair services).

Let's start from the upper left corner with the strengths of the company that it has at the moment in time, then fill in the upper right field - we enter the internal existing shortcomings / weaknesses of the company there. In the lower left square we write the opportunities of the external environment that can be realized in the future, and in the right square we write threats and risks that are terrible for the business as a whole.

When you fill out the SWOT analysis matrix, analyze the upper squares from the side of the manager and from the side of your clients, and the lower squares from the side of the company's management.

1. As we see in the green square with a plus, you need to record the company's resources. Personnel, equipment, software, finances, uniqueness, business processes, etc.
2. In the beige sector, we fix shortcomings within the company. Answer these questions:

• “What’s stopping you from selling more?”
• “What don’t you have compared to your competitors?”
• “Who is hindering development or does not meet the assigned competencies?”
• “What or what resource is missing to solve the problem?”
• “What’s not to like about your customers?”

3. The blue sector should reveal the opportunities that are provided to your company from the outside. Answer these questions:

• “What are the prospects for the development of your business line in the modern market?”
• “Is there an increase in demand for your product/services? Are the needs of your target audience growing?”
• “What are the trends regarding laws in your area of ​​business?”
• “Are there free niches where your company could make additional profit?”
• “Is there an opportunity to expand your product range?”
• “Who could help you develop your business? How?"

4. The most important threat sector. It is this that is a priority and will provide us with material for developing specific activities. To fill in the red sector you need to write answers to the questions:

• “What are my worst fears?”
• “I would have done ....., but if not .... »
• “The company will cease to exist if...”
• “What actions of competitors will affect the development of the company?”
• “What changes in policy and legislation are undesirable for business?”

You must answer these questions with a team consisting of managers and performers.

We get the result

What to do next with these records? The next step is to rank your posts by importance, weight and significance. In the example above, each entry is located under its own importance number - the first is the most important. Determine the three most important positions in the “Threats” block; first of all, you need to develop a strategic action plan for the company to eliminate or prepare for these threats.

Under the first point is: “Loss of dealership due to failure to meet sales plan.” The sales plan is an internal factor, and the fate of the company is still influenced by the importer, who analyzes the share of sales in the region and may deprive you of the right to sell cars of a certain brand. It turns out that this is an external factor that is associated with internal and external problems. Solution: draw up a SWOT analysis of the sales department, it will show the problems that do not allow you to sell enough. Objective #1 is clear.

Next. “Dependence of income on exchange rate fluctuations”. If your internal accounting is kept in foreign currency, you need to develop measures to reduce the impact of this factor on profitability, otherwise an increase in the exchange rate will destroy your margin (markup). For example: sell goods without coming to the warehouse, increase the turnover of goods (sell quickly), create an insurance fund in case of fluctuations, create an adaptive price list that will be automatically converted into national currency at the current rate on the day of payment, etc.

Next. “Dependence on the policies and decisions of the importer”. Designate an employee who will monitor changes and sales rules regulated by the importer. Let him deal only with communication with the importing company. Find a contact person at the importing company who can help with advice and establish contact with him for long-term cooperation.

This data is entered into a table similar to this:

About the pros and cons of the technique

Advantage This method is the ability to obtain a general spatial picture of the state of the object of analysis, which will help make the right decision. SWOT analysis can be used in various fields and is accessible to everyone.

Disadvantage is the lack of accurate quantitative data that can show the dynamics of changes and the subjective factor in compilation.

Summary

This is how you can understand: what to do next, where to move, what is stopping you. A similar analysis can be carried out separately for each department, which will help identify more problems and, as a result, develop a strategy for further development or solution to the problem. The effectiveness of a SWOT analysis depends on the objectivity of the people who compiled it, as well as on the number of questions (coverage of the problem or condition). The more questions, the deeper you will touch on the problem, the more auditors, the more questions and subtleties you will be able to work out.

As you can see, SWOT analysis is a fairly powerful marketing tool that allows you to create a competent business development strategy and correct existing shortcomings.

Life forces us to make decisions every day. And every decision we make, one way or another, affects our future. Our fate for years and even decades depends on some decisions. To make any important decision, you need a thorough analysis of what is happening, this is necessary both in business and in everyday life. Qualitative analysis is a very difficult matter. And despite the fact that absolutely every person needs to be able to do it, this management function is not taught in school. Today we will talk about one of the most common methods of analysis - the SWOT method.

What is SWOT analysis

SWOT analysis is a method of primary assessment of the current situation based on considering it from four sides:

• Strengths - strengths;
• Weaknesses - weaknesses;
• Opportunities - opportunities;
• Threats – threats;

Strengths and weaknesses are your internal environment, what you already have at the current moment in time. Opportunities and threats are environmental factors, they may or may not happen, it also depends on your actions and decisions.

The acronym SWOT was first used at Harvard in 1963 at a conference on business policy by Professor Kenneth Andrews. In 1965, SWOT analysis was proposed to develop a company's behavior strategy.

SWOT analysis helps to create a structured description of a specific situation, based on this description, conclusions can be drawn. This allows you to make correct and informed decisions. SWOT analysis plays a significant role in business and should be mastered by everyone involved in personnel management and marketing.

Rules for conducting SWOT analysis

Before you begin drawing up a SWOT analysis, you need to understand a number of rules.

1. Need to choose the most specific area of ​​research. If you choose an area that is too broad, the conclusions will be unspecific and less applicable.
2. Clear separation of elementsSWOT. There is no need to confuse strengths and opportunities. Strengths and weaknesses are the internal characteristics of an organization that are within its control. Opportunities and threats are related to the external environment and are not directly subject to the influence of the organization; the organization can only change its approach and adapt to them.
3. Avoid subjectivity. It would be naive to rely on your opinion if the market does not agree with it. You may think your product is unique, but it's worth asking consumers about this first. Without them, your personal opinion has no meaning.
4. Try use the opinions of as many people as possible. The larger the sample, the more accurate the research. Remember about?
5. The most specific and precise formulations. I often ask my subordinates: “What do you need to do to earn more?” They almost always tell me that I need to work harder. This is not a specific formulation; it is not clear what specific actions a person should perform at what time.

Using these simple rules, you can proceed to compiling a SWOT matrix.

SWOT matrix

SWOT analysis is usually used by drawing a table, it is often called a SWOT matrix. This method of use does not depend on the global nature of the problem being solved. It doesn’t matter whether you’re deciding who to spend the weekend with or what business to invest your millions in, the essence and appearance of a SWOT analysis will remain the same. The SWOT matrix looks something like this:

The first line and first column are indicated simply for ease of understanding; they are not necessary to draw if you understand the SWOT analysis method well.

How to use SWOT analysis

So, you are faced with a certain task and you need to understand how to solve it. First of all, you need to draw a SWOT matrix. You can do this by dividing a sheet of paper into four parts. In each part you need to write as much available information as possible. It is advisable to write the more significant factors first, then move on to the less significant ones.

We analyze strengths and weaknesses

It is not surprising, but it is with the description of strengths that the most problems arise for people who take up SWOT analysis for the first time. In general, you can ask your employees, friends and acquaintances for help in assessing, but it is better to learn how to analyze yourself. Strengths and weaknesses are assessed using the same parameters.

In business, strengths are assessed primarily based on the following parameters:

• Management and human resources in general. First of all, the competence and experience of the staff;
• Having a clear system. Business processes and employee understanding of what to do;
• Finance and access to money;
• Clearly. This is a very important success factor; the lack of a sales department is a serious obstacle and a sink for other resources;
• Reasonable marketing policy;
• Availability of production costs.

When conducting a SWOT analysis of your personality, you can rely on the following criteria:

• Education and knowledge;
• Experience and your skills;
• Social connections, useful contacts and other opportunities to use administrative resources;
• Recognition and authority;
• Availability of material resources;

When analyzing your strengths, you should focus on what you like to do and what you are good at. As a rule, what we don’t like turns out worse for us.

Analysis of opportunities and threats

Opportunities and threats are created by changes in the environment and those changes that you personally can make. It is worth noting that to analyze the external situation on the market, and even more so to predict the future market, you need to have serious qualifications. It is very difficult to predict what will happen and it is worth relying primarily on current facts and trends. At the same time, when making long-term planning, it is necessary to take into account the most pessimistic scenario for the development of the situation.

Opportunities and threats in business are primarily assessed according to the following parameters:

1. Market trends. Increase or decrease in demand.
2. Economic situation in the country. During years of economic growth, business, other things being equal, will grow in proportion to the growth of the economy, and vice versa.
3. Competition, the absence of competitors today does not guarantee their absence tomorrow. The arrival of a major player in the market can turn the industry upside down.
4. Infrastructure changes. Major changes to infrastructure can result in both gains and losses.
5. Legislation and political trends. Probably, in 2003, no one imagined that within 5 years all casinos would close.
6. Technological revolutions. Progress inevitably destroys entire industries while creating new ones.

Any field of business has its own experts and professionals; to compile a high-quality SWOT matrix, you can turn to them for advice and expert opinion.

SWOT analysis methodology

So, we have a completed SWOT matrix that contains: strengths and weaknesses, as well as opportunities and threats. Based on this matrix, you need to work according to it. To do this, perform the following steps:

1. It is necessary to rank all factors according to the degree of influence;
2. All far-fetched and unimportant factors must be excluded;
3. We analyze how your strengths can help you avoid threats and achieve opportunities;
4. Let's see what impact your weaknesses can have on opportunities and threats;
5. How strengths can help improve weaknesses;
6. How can we reduce threats;

Based on the work done, you draw up the main vectors of development. SWOT analysis is primarily a tool for descriptive assessment of the situation. It does not analyze large amounts of analytics and does not compare indicators over past years. SWOT does not measure quantitatively the parameters. And that is why the SWOT method will always be a rather subjective analysis tool.

Application of SWOT analysis

The simplicity of SWOT analysis makes this tool very versatile; as we wrote above, it can be used both in life and in business. SWOT analysis is used both separately and in combination with other analysis and planning tools. SWOT analysis is most widely used in management, primarily for strategic planning of an organization's activities.

SWOT self-analysis

Separately, I would like to talk about the use of the SWOT analysis method to determine priorities in personal development. You can use this tool to determine goals both at work, for example, what area of ​​activity you should pursue, and in personal relationships.

I strongly recommend that middle and senior managers ask their subordinates to do a personal SWOT analysis at least once a year. It is also an excellent tool for determining management abilities when hiring a new employee. I first read this idea in Igor Mann’s book Number 1. Mann recommends giving SWOT to everyone who came for an interview.

We offer a simple and convenient case for compiling a SWOT analysis of an enterprise with a ready-made template in Excel format. The example of a SWOT analysis discussed in the article is suitable for any manufacturing enterprise, manufacturing company or non-profit organization.

If your company is a point of sale, then this article about SWOT analysis using the example of an enterprise will not be very suitable for you. We recommend moving on to an example developed specifically for the trade industry. An example of a swot analysis of a store is suitable for both a free-standing retail department, pharmacy, grocery store, and for a retail enterprise and a large retail chain.

Comments from the author

This sample SWOT analysis of a business includes a free template to fill out. You can download the template at the end of the article in Excel format. The example is absolutely practical and suitable even for a non-profit organization: it contains extremely practical advice on drafting. If you are not completely familiar with the SWOT analysis method, we recommend that you first familiarize yourself with the SWOT analysis method.

This example of a SWOT analysis is for illustrative purposes only. The purpose of the example: to show the correct sequence of actions, to systematize theoretical information about the method as much as possible and to help everyone create their own SWOT analysis “from scratch.”

So let's move on to the first step.

Features of SWOT analysis of an enterprise

When looking for strengths, weaknesses, threats or growth opportunities in the process of compiling a swot analysis, remember the following differences between a manufacturing company and a trading company:

• No or limited direct access to the buyer, there are intermediaries
• Makes decisions about product positioning and can make demands on dealers regarding product sales conditions
• May affect the consumer qualities and characteristics of the product
• May affect product packaging
• Can adjust the price of the product
• Has a budget to promote its product

Stage one: finding strengths and weaknesses

The first step is to consider all the options for strengths and weaknesses, and for each area, highlight at least 3 parameters by which you can evaluate the competitiveness of the business.

Table 1 Example of searching for strengths and weaknesses when compiling a swot analysis

The second step is to additionally generate ideas about the strengths and weaknesses of the product by answering 6 questions:

• What competitive advantages does the product have?
• What are the main reasons for purchasing a product?
• What product characteristics help set a higher price?
• Name the main disadvantages of the product
• List the main reasons for product refusal
• What prevents you from setting a higher price for a product?

Table 2 Example of additional generation of ideas for SWOT analysis of an enterprise

As a result of the first two steps, you will have a list of possible strengths and weaknesses of the company.

The third step analyze each selected factor:

• highlight those factors that are key factors for success in the market
• rank all factors according to the degree of influence on the company’s sales and profits from 1 to ...
• For each factor, compare your product with the products of key competitors: the parameters by which your product is better than competitors are the strengths of the product, and vice versa

Stage two: checking the importance of strengths and weaknesses

Not all of the listed strengths and weaknesses should be used in a swat analysis. Minor factors must be excluded. To do this, assess the importance of the selected parameters, assessing the impact of each parameter on customer satisfaction and company profits.

Table 3 Example of assessing the importance of strengths

Table 4 Example of assessing the importance of weaknesses

As a result of the check, all insignificant parameters will be eliminated and the final rating of strengths and weaknesses will be ready.

Table 5 Final list of product strengths and weaknesses

Stage Three: Finding Growth Opportunities

List possible sources of sales growth based on information. Come up with additional sources of growth by answering 2 questions:

• How else can a company increase sales?
• What ways are there to reduce costs?

Stage Four: Testing the Reality of Every Growth Opportunity

We eliminate unnecessary features that do not affect business profits and customer satisfaction:

Table 7 Checking growth opportunities

Stage five: searching for business threats

List possible threat options using the information. Consider additional business threats by answering 2 questions:

• What other factors could affect the company's sales decline?
• What other factors can affect cost increases or profit decreases?

Table 9 Preliminary list of threats to the company’s competitiveness

Stage six: checking the significance of business threats

We eliminate unnecessary threats to business that do not affect business profits and customer satisfaction for 5 years:

Table 10 Checking the list of business threats

Stage seven: example of compiling a SWOT analysis table

We transfer all factors to the SWOT analysis table, maintaining the importance rating.

Table 12 SWOT analysis table

Stage eight: writing conclusions based on the SWOT analysis

We draw conclusions based on the carried out swot analysis using recommendations.

Table 13 Conclusions from SWOT analysis

SWOT analysis is ready. If this example of a SWOT analysis of a company was useful to you, please leave feedback.

Detailed video course

Have questions about compilation? Watch our best video course on the SWOT analysis methodology. The video course contains detailed information on how to prepare a SWOT analysis “from scratch,” write high-quality conclusions, and make a presentation of the work done to management.

Part one: SWOT analysis, determining the strengths and weaknesses of a product

Starting a business is hard work. There are so many little things you need to pay attention to that you can simply get lost in them.

The only way to ensure that your business will last is to periodically step back from it and look at things from a broader perspective.

This is what SWOT analysis is all about. A SWOT analysis will allow you to look at the potential of your online business. You will not only study how your company works today, but you will also be able to plan its development for the next week, month and even year.

What is SWOT analysis?

SWOT analysis sounds like the name of some scary accounting process. But that's not true. SWOT analysis is not complex, but it is very useful.

The abbreviation SWOT stands for:

• S – Strengths
• W – Weaknesses
• O – Opportunities
• T – Threats

This is a list of what needs to be assessed during the analysis. A SWOT analysis forces you to think about the future. Do you know how your business works today, but have no idea what will happen to it tomorrow? A SWOT analysis will allow you to understand this and plan your development process.

A SWOT analysis shows the strengths and weaknesses of your online business, both from an internal and external perspective.

Strengths and weaknesses are internal factors, while opportunities and threats are external. Internal factors relate directly to your business, while external factors concern the environment that surrounds it.

Strengths and weaknesses provide insight into the present state of affairs, while opportunities and threats focus on the future. What is happening and what could happen.

The strengths and weaknesses in a SWOT analysis are under your control. They can be changed over time.

For example:

• company culture
• reputation
• client list
• geography
• employees
• partnerships
• intellectual property
• assets

Conversely, the opportunities and threats of a SWOT analysis are usually beyond your control. You can try and plan for them or influence positive changes, but at the end of the day it is not up to you.

For example:

• regulation
• suppliers
• competitors
• economy
• market size
• trends
• financing

Why do you need a SWOT analysis?

In any online business, both new and old, it is necessary to conduct a SWOT analysis.

Whether you're just starting a business or are still in the planning stages, a SWOT analysis will give you a competitive advantage. Completing it will allow you to conduct a break-even analysis and see a more realistic picture of the entire process. Both are necessary in order to obtain funding.

Existing businesses should conduct a SWOT analysis annually. This will allow you to keep your business running smoothly, anticipate problems, work on necessary changes or improvements, and make smarter decisions throughout the year. Basically, an annual SWOT analysis will prevent you from losing touch with your business, customers and production.

How to do a SWOT analysis?

There is no objective way to measure how well you perform a SWOT analysis. It depends on your ability to notice and remember the internal and external factors that may affect your business. SWOT analysis is needed not to make accurate predictions, but to correctly plan business development.

Step 1: Gather the right people

Although important business decisions should generally be made by the founders and managers of the company, a SWOT analysis requires the participation of as many employees as possible. Having more data, even from people who don't fully understand your business, will make your planning even more accurate.

You'll also find that many employees have good ideas and useful skills. Even your customers can provide valuable information.

Step 2. Brainstorm

Once you have your team together, organize a brainstorming session with everyone involved. You can either list strengths, weaknesses, opportunities, and threats together (for smaller teams) or ask participants to create corresponding lists separately (for larger teams).

Consider everything that falls into each category. At this point, don't worry about how important each observation is. The idea is to not miss anything. Just write it all down.

Step 3: Fill in the blanks

Once you've exhausted all the ideas and written four big lists, it's time to start filling in the gaps where more explanation is needed. This is an opportunity for you and your team to ask questions that will determine how important each item on the list is.

Ask everyone in the group to choose the three most important items on each of their lists. Chances are, a pattern will emerge that will show you what to focus on.

Even if you are working on the analysis alone, don't worry. In this case, you are involved in all parts of the business and should have a good understanding of what needs to be considered.

31 Example Questions for Conducting a Strategic SWOT Analysis

Whether you're working alone or in a group, starting a brainstorming session can be challenging. The following questions will help you move forward. We recommend asking yourself these questions so you don't miss important factors to consider.

Questions to identify strengths in SWOT analysis

These are positive internal factors that influence the performance of your business. Although they may be difficult to change, they should be under your control:

• What are we good at?
• What do we do better than anyone else?
• What is our competitive advantage?
• What do we do that no one else does?
• What resources are at our disposal?
• What are the advantages of our online business?
• What benefits do our employees have?
• What valuable assets does our company have?
• What do our clients like about us?

How to determine weaknesses when analyzing

These are negative internal factors that affect the performance of your business. Although they may be difficult to change, they should be under your control:

• What are we doing wrong?
• What are our competitors better than us at?
• What complaints do our customers have?
• What are our team's weaknesses?
• What's holding us back?
• What resources do we lack?
• What can we improve?

Examples of analysis questions opportunities

These are external factors that can affect your business in a positive way. They may be largely out of your control, but you can use them:

• What potential regulatory changes could help our business?
• Are market trends favorable to us?
• Can the current economy affect us in a positive way?
• What possibilities haven't we considered yet?
• What new features are becoming available?
• Are the prices of our goods decreasing?
• Can we acquire additional resources that we lack?

Questions to consider threats in SWOT analysis

These are external factors that can negatively impact your business. These may be largely out of your control, but you can take them into account to minimize the damage:

• Who is our competitor?
• What new market participants could threaten our business?
• Is our market size shrinking?
• Could industry trends negatively impact our business?
• Is the cost of our goods increasing?
• Are our partners' offers enough for us?
• Are the rules changing that could harm our business?
• Is our manufacturer reliable?

How to effectively use the results of a SWOT analysis

As a business owner, you constantly need to decide where to focus your attention. Tough resource allocation decisions are inevitable. No matter how successful you are, you always need to choose where to direct your attention. A SWOT analysis will help you determine which areas you need to focus your energy and resources on.

Step 4: Narrow down your lists

Take the lists you created during your brainstorming session. Now work on shrinking these lists so they can fit in a table on one page (like the example below). Narrow down lists based on two assumptions: how important the factor is and how likely it is.

For example, if you get the bulk of your income from one large client, this is a big weakness that leaves you in a vulnerable position, even if you are confident that this client will not leave you.

Even when you have created a table like the example below, save your lists. You're not going to focus on factors that aren't included in the table right now, but you can be sure that you won't miss any important issues if the situation changes. What is less important now may become critical in the future, and you should be aware of this possibility. You can always change the list and come back to it later.

Step 5: Create Strategies

For each of the factors on your shortlist, create a strategy to take advantage of the strengths and opportunities and to address the weaknesses and threats. These initial strategies don't need to be particularly complex or foolproof, although you can refine them later. For now, just create an action plan.

Also, keep in mind that different factors can work together to balance each other out. How can you use your strengths to eliminate your weaknesses? How can you take advantage of opportunities to neutralize threats? Can you use your strengths to better seize opportunities? Do you have any weaknesses that could prevent you from preventing the threat?

Example of a SWOT analysis table

Below is an example of a SWOT analysis table for an online T-shirt store. Although many other factors emerged during the brainstorming session, these were the most important.

Strengths: Local production allows for fast order processing Many regular customers who promote the business Good ranking by search engines, allowing you to get free traffic	Weaknesses: Prices for locally made T-shirts are uncompetitive Higher costs mean fewer material options due to warehousing costs Clients do not like to take measurements themselves
Possibilities: Using technology to simplify the measurement process can increase sales New paid advertising channels like Instagram and Pinterest can be effective Buying clothes online is a trend nowadays.	Threats: Several competitors are currently undercutting prices Website is difficult to use on a mobile device, although mobile traffic is increasing Strong dollar could dampen international sales

Consider what strategies a business owner can implement based on this information. Remember that there is no right or wrong answer here.

6 Examples of SWOT Analysis Strategies

The most important part of a SWOT analysis is how you use the information obtained. Here are six example problems (with potential solutions) to help you start thinking strategically.

Example 1: Your lease is nearing the end of its term and you need to renegotiate the terms. Since the price of the neighboring premises has risen, you are afraid that the same will happen to yours.

Strategy as a result of analysis: start selling online to reduce your space footprint.

Example 2: You rely on raw materials that are in high demand, and prices rise quickly as they become more scarce.

Strategy: Participate in a five-year contract to ensure delivery at a lower price.

Example 3: You have excess cash.

Strategy: Set aside a fixed amount for emergencies and invest the rest for growth.

Example 4: Your employees are ineffective.

Strategy: Hire a work culture consultant to help you understand the situation.

Example 5: Most of your website traffic comes from search engines. If the algorithm changes and your site stops ranking, you could lose a lot of new customers. You need to diversify your traffic.

Strategy: Start using other traffic sources such as social media or paid advertising.

Example 6: Your entire business fits on your laptop, and if it's stolen, you'll lose everything.

Strategy: Purchase a program to automatically back up your files on a daily basis.

Working through a SWOT analysis on a regular basis will prevent you from losing touch with your business, your team and your clients. More importantly, it will help you stay successful in an ever-changing market.

Once you have time to think about the most important things on your list, create an action plan and get to work!

SWOT analysis: what it is and examples of how to do it correctly

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