Have you ever wondered if the term “SWOT Analysis”? Or Ever had a chance to do SWOT Analysis for yourself? SWOT Analysis is a term coined by Albert Humphry in the 1960s. It consists of Strength, Weakness, Opportunity, and Threats. Swot Analysis is done to know a company’s strengths, weaknesses, opportunities, and weaknesses and act accordingly to overcome them. Not all companies may have only strengths and or only weaknesses. There are strengths as well as weaknesses.
Swot Analysis does not apply to a company but even for an individual. When you appear for an interview, there you will face this question ” What are your Strengths and Weaknesses? Have you faced any Threats?”
Similarly, a marketer has to SWOT Analysis for the company as it is constantly at threats from its competitors and it is the primary objective of a company to overcome its weaknesses and focus on its strength.
In this blog, we shall discuss more on SWOT Analysis, How to do it, the advantages of SWOT Analysis and some examples of SWOT Analysis.
What’s in it for me?
- What is SWOT Analysis?
- Who should use SWOT Analysis?
- How to do SWOT Analysis?
- What are the Strengths and Weaknesses?
- What are Opportunities and Threats?
- What is the AIM of doing SWOT Analysis?
- How to implement SWOT Analysis?
- What are the benefits of doing SWOT Analysis?
- Some examples of SWOT Analysis
1. What is SWOT Analysis?
SWOT consists of four different letters that come together to make a word that is SWOT. Here, SWOT stands for,
- S = Strength,
- W = Weaknesses,
- O = Opportunities,
- T = Threats.
SWOT helps us to analyze our strengths, weaknesses, opportunities, threats,
Or we can say this is not a word but a technique used for checking the performance of an organization or a person that prevents the chances of failure down the line.
2. Who should use SWOT Analysis?
SWOT Analysis can be done either by Startups or any existing company. SWOT Analysis gives a company a clear picture to analyze what are the strengths, weaknesses, opportunities, and threats. For any startup, there will be strengths and weaknesses. But for an existing company, there can be an opportunity as well as threats.
You can also do a SWOT analysis of your competitors to know their weaknesses which can be an added advantage to compete with them and by knowing their strength we can implement it in our organization to improve our strategy. You always have to be ahead of your opponent because you can protect yourself from the threats but cannot change them.
A person who knows his/her organization completely can take responsibilities on his/her shoulder. This responsibility is commonly taken by the founder or leader of a company.
3. How to do a SWOT analysis?
So let’s learn how to do SWOT Analysis
SWOT analysis is done by this method -;
- Take a team of leaders in every department of the organization.
- Set a meeting for at least 1-2 hours.
- Make four quadrants that are strength, weaknesses, opportunities, and threats
- Take everyone’s perspective on the organization
- A mutual conclusion should be put down in the analysis report
But, always remember one thing that you have to constantly do this strategy in 6-12 months because of drastic changes in the market scenario. You may never know what’s gonna happen next to your business or startup.
A swot analysis identifies the strengths, weaknesses, opportunities, and weaknesses. Swot analysis is a strategic planning tool that helps in business or organization and marketing management. We are dividing into two parts SW and OT i.e. mean strengths, weakness and opportunities and threats. First of all, we will know the strengths and weakness then opportunities and threats.
4. What are STRENGTH AND WEAKNESS?
Strengths and weaknesses are part of internal environments. Internal strengths can be tangible or intangible. It is the strategic planning of any company/organization. Strengths are those areas where your company or organization can make a good profit compared to its competitors in this competitive market. Whereas, weakness is that area where you need to overcome the lagging part, in which the competitors have the advantage of generating profit.
Strengths mean power. It is a positive factor if we talk from a company’s point of view. Even for an individual, swot analysis is very helpful. A company should have a good brand name, good reputation in the market. If we start any business we set goals and objectives, we work for what we have to achieve, and then it helps us to achieve whatever we want. It creates a positive image in the customer’s mind.
For example- Apple phones. If apple phones launch a new product we will purchase the new phone without knowing it is good or not. Because Apple has a good reputation, good brand name, Apple does not work very hard to sell the product. Many products maintain a good reputation in the market. Other factors include cost, distribution channel brand equity.
Weakness is that area where goals which have been set, could not be achieved. It could be due to less manpower, inexperienced employees, higher costs of the products, lack of infrastructure, etc…
There are some internal environment factors-
- Financial resources
- Managerial resources
- Manufacturing Resources
- Marketing Function
- Distribution Channel
- Brand Loyalty
5. What are OPPORTUNITIES and THREATS?
Opportunities and threats analyze the external environment.
It helps the organization to achieve the goals and objectives. Opportunities create chances to make more profit for an organization, whereas, threats are the areas which act as an obstacle for a company. Threats mean danger and we can say opportunities could be a strength.
For example, we have launched a smartphone in the market. We need to observe that the technologies that we have introduced in the smartphone are superior to our competitors or not. This way we can analyze our strengths and weakness.
Another example – if Government policy changes it can be either opportunities or threats or vice versa for our competitors.
Other important external environment includes
- What is the industry environment?
- What is the political environment?
- What is the technological environment?
- What is the ethical environment?
- What are government policies?
- What is the social environment?
- What is the demographic environment?
6. What is the aim of doing SWOT Analysis?
- To help in decision making
- To organize the important factor linked to success and failure in the business
- To bring a clear common purpose and understating of the factor of success
- Prepare your industry for the problem
- Analyze the sales and profitability
7. How to implement the swot analysis?
- Analyze the internal & external environment
- Identify strengths and weaknesses.
- Identify the opportunities and weakness
- Make the action plan
8. What are the benefits of doing SWOT Analysis?
- Help in strategic planning
- Make organization strengths
- Find out the weakness of the business
- Maximize the opportunities
- Solve the problem
- Help in identifying the competitor
- Sales increase
- Maximize the profit
- Unique selling proposition
9. Some example of SWOT Analysis
After understanding what is SWOT Analysis, now we will see some examples of SWOT Analysis.
As we all know, Strength and Weakness are Internal Factors. (Internal Factors – Which we can control and alter the matter Internally). And, Opportunities and Threats are External Factors. (External Factors – Which we cannot control and but act or change in line with the situations).
In India, we all know the Brand Patanjali. Everyone uses the product of Patanjali daily and this brand is the fastest growing FMCG (Fast-moving consumer goods) company. After January/2006, Patanjali changed the whole market in India.
So, we can Understand the example of SWOT Analysis with the assistance of Patanjali.
Strenth of Patanjali:
- Natural Products – It has a Natural Product. Patanjali market their product as a natural, organic or herbal product, which is beneficial for us.
- Swadeshi Apnao – In the market of India, the image of Patanjali is created by Ram Dev Baba Ji which is the brand ambassador of Patanjali, and sell their product with the use of a tagline – SWADESHI APNAO.
- Yoga benefit – It has millions of yoga Followers, which blindly follow the Patanjali.
- Made in India – We all want to shop for Indian products because when the product is made in India the cost of product will-less as compared to other Non-Indian brands, we can easily trust Indian products and other benefits.
- Low-Cost Products – They provide products at low cost with better quality ( not all products but few products are at low cost and better quality).
The weakness of the Patanjali:
- Competition Level – In the Indian market, there are lots of other companies that market their product as an Ayurvedic product. So, it’s not easy for Patanjali to Compete with other companies.
- Export in Few Country – Patanjali only Export their Product in few countries such as – the U.K, U.S, Nepal, and Dubai only (Nowadays). And other companies can take some share in the Foreign industry.
- Brand Ambassador – As we all know, that Ram Dev Babaji is a brand ambassador of Patanjali. When a company can remove the name and image of Ram Dev Babaji, then it’s a big loss for Patanjali.
The opportunity of the Patanjali:
- Open New Store – Patanjali can increase its store in all places so that the company can take more benefits from this.
- Patanjali can target the Urban & Rural areas.
- FMCG Future – Patanjali can capture all markets of natural FMCG in the future
- Global Level – Patanjali has a big opportunity, they can represent India at a global level.
- Patanjali can create their market in other countries.
Threats of the Patanjali:
- The market was captured by other companies already, and this is not easy for Patanjali to compete with them.
- Politically interference – Patajanli can face political interference in some phases.
- Patanjali Can face negative marketing because in some drug tests Patanjali product failed. This can be not good for the Company.
So, This is a simple & short example to understand the concept of SWOT ANALYSIS clearly.
SWOT analysis should be performed according to the need and type of business. But as a general rule of thumb, it should be performed every 6 months at least.
SWOT analysis also known as SWOT matrix helps you identify your strength, weaknesses, opportunities, and threats which can help you identify and evaluate companies’ positions and helps to form a better strategy for future growth.
The term SWOT stands for Strength, Weakness, Opportunities, and Threats.
SWOT analysis is important as it helps in identifying the actual position of the organization, where it should get better, and what opportunities it can avail.
SWOT analysis is internal as well as external.SW or the strength and weakness deals with the internal environment whereas OT or opportunities and threats deal with the external environment.
What is SWOT Analysis? How to do SWOT Analysis?
Summary: SWOT Analysis, stands for, Strength , weaknesses, opportunities, threats, helps us to analyze our strengths, weaknesses, opportunities, threats. So let’s..
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