How to do a SWOT analysis


analisis

One of the advantages of this analysis model is that it can be applied in any management situation, type of company (regardless of its size and activity) or business area. The first step we must take is to describe the current situation of the company or department in question, identify the strategies, the changes that occur in the market and our capabilities and limitations. This will serve as the basis for a historical, casual and projective analysis.

The internal analysis

It consists of detecting the strengths and weaknesses of the company that give rise to competitive advantages or disadvantages. To carry it out, the following factors are studied:

Production. Production capacity, manufacturing costs, quality and technological innovation.

Marketing. Line and range of products, image, positioning and market share, prices, advertising, distribution, sales team, promotions and customer service.

Organization. Structure, management and control process and culture of the company.

Personal. Selection, training, motivation, remuneration and rotation.

Finance. Available financial resources, level of indebtedness, profitability and liquidity. Investigation and development . New products, patents and lack of innovation.

The external analysis

It is about identifying and analyzing the threats and opportunities in our market. It covers various areas:

Market. Define our target and its characteristics. Also the general aspects (size and market segment, evolution of demand, consumer wishes), and other behavioral aspects (types of purchase, behavior when buying).

Sector. Detect market trends to find out possible opportunities for success, studying companies, manufacturers, suppliers, distributors and customers.

Competence. Identify and evaluate current and potential competition. Analyze your products, prices, distribution, advertising, etc.

Environment. They are the factors that we cannot control, such as economic, political, legal, sociological, technological, etc.

DEFINE THE STRATEGY

The SWOT helps to consider the actions that we should take to take advantage of the opportunities detected and eliminate or prepare the company against threats, being aware of our weaknesses and strengths.

Once the objectives have been set - which must be hierarchical, quantified, real and consistent - we will choose the strategy to reach them through marketing actions. Let's review the possible strategies with examples:

Defensive. The company is prepared to face threats - if your product is no longer considered a leader, highlight what differentiates you from the competition. When market share drops, look for customers who are more profitable for you and protect them.

Offensive. The company must adopt growth strategies. When your strengths are recognized by customers, you can attack the competition to exalt your advantages (for example: the 83% prefers x). When the market is mature, you can try to steal customers by launching new models.

Survival. You face external threats without the internal forces necessary to fight the competition. Leave things as they are until the changes that take place settle (for example: observe the internetization of the environment before launching into the network).

Reorientation. Opportunities open up for you that you can take advantage of, but you lack the proper preparation. Change policies or products because the current ones are not giving the desired results.

What factors must be considered in a SWOT analysis?

INTERNAL STRENGTHS

  • Fundamental skills in key activities
  • Superior technology skills and resources
  • Main technology property
  • Better manufacturability
  • Cost advantages
  • Access to economies of scale
  • Skills for product innovation
  • Good image among consumers
  • Products (brands) well differentiated and valued in the market
  • Best advertising campaigns
  • Well thought out and designed specific or functional strategies
  • Management capacity
  • Organizational flexibility
  • Others .

INTERNAL WEAKNESSES

  • There is no clear strategic direction
  • Inability to finance necessary changes in strategy
  • Lack of some key skills or abilities
  • Delay in Research and Development
  • Higher unit costs compared to direct competitors
  • Profitability below average
  • Excess of internal operational problems
  • Obsolete facilities
  • Lack of experience and managerial talent
  • Others .

EXTERNAL OPPORTUNITIES

  • Enter new markets or segments
  • Serve additional groups of clients
  • Expanding the product portfolio to meet new customer needs
  • Rapid market growth
  • Diversification of related products
  • Vertical integration
  • Elimination of trade barriers in attractive foreign markets
  • Complacency between rival companies
  • Others.

EXTERNAL THREATS

  • Entry of new competitors
  • Increase in sales of substitute products
  • Slow market growth
  • Change in consumer needs and tastes
  • Growing bargaining power of clients and / or suppliers
  • Adverse changes in exchange rates and trade policies of other countries
  • Adverse demographic changes
  • Others.
  • Fountain:

    http://www.emprendedores.es/

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