The corporate world is full of jargon that can initially seem intimidating. Business people will use the term SWOT analysis as a common phrase in conversation, but do most people understand what that means outside of the office?
What is a SWOT Analysis?
SWOT is an acronym that stands for:
- Strengths
- Weaknesses
- Opportunities
- and Threats
It is a strategic analysis that helps businesses determine their competitive advantage within a marketplace and discover areas for improvement. Strengths and weaknesses exist within the organization’s walls internally, while opportunities and threats develop outside your company externally.
Internal Analysis
Internally, your organization’s strengths and weaknesses are somewhat in your control. They are factors that you can directly have an impact on.
Strengths:
Strengths can consist of the following:
- Brand identity, brand name, logo design, and intellectual property
- Resources (money, people, time, knowledge, and skills)
- Price
- Products and services you offer
- Quality
- Customer service
- Innovation, research and development
- Marketing, promotion and communication
- Things your organization excels at
Strengths can be tangible such as a product you sell, or intangible, like your brand persona or business website.
Weaknesses:
Weaknesses can consist of:
- Unengaged or unmotivated staff
- Lack of resources
- Poorly made products
- Poor delivery and timelines
- Unresponsive customer service
- Unnecessary bureaucracy and red tape
- Lack of direction and accountability
- Things your company doesn’t do as well as others
An organization always has room for improvement, learning, and growth! Understanding your weaknesses is the first step toward improvement.
External Analysis
Externally, there are many factors outside of your control that can impact your business. The political environment, economic environment, competitive landscape, social changes, and technological advancements can all affect your business.
Opportunities:
Opportunities can consist of:
- Emergent technologies (Artificial Intelligence such as Chat GPT)
- Changes in legislation and regulations
- Getting positive media coverage of your organization
- Lack of competition in your marketplace
Threats:
Threats can consist of:
- New market competition
- Changes in legislation and regulations
- Natural Disasters or other unforeseen challenges such as the COVID-19 pandemic
- New and/or disruptive technology
- Increased costs from suppliers, including utilities, materials and more
- Supply chain issues
While not directly controllable, these factors can impact the business environment.
SWOT as a Starting Point
A SWOT analysis allows us to examine the strengths and weaknesses facing your company, while also becoming aware of the opportunities and threats outside of your organization.
At Focus Communications, a detailed SWOT analysis is one of our starting points when assessing our clients’ needs or developing a communications plan. By conducting a SWOT analysis, we build a relationship with our clients and help them build strategies for better communication with their employees and customers.
If your business would benefit from a communications audit or plan, contact us today.
