What SWOT Analysis is and How to Do It Accurately
SWOT analysis may be a simple but it is a powerful tool to help you create an excellent business strategy, whether you are building a business or establishing an existing one. This article is all about SWOT to know about your company’s strengths and weaknesses that are internal. It includes things that can be controlled and even changed. For example, your team members, your license and policies, and your location. SWOT analysis also includes external opportunities and threats outside your company. Businesses can take advantage of the same opportunities and protect their company from threats. For example, competitors, manufacturing raw materials, and new shopping trends.
What Is A SWOT Analysis?
SWOT meaning is Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis in marketing is a method for evaluating these four aspects of your company. Businesses can use SWOT analysis and make the most out of their current organization's resources as the best advantage. This way they can decrease the risk of failure, by recognizing what a company is lacking and eliminating any kind of threats that may cause complications unexpectedly. There is always time to start planning a strategy that separates you from your competitors and be successful in the market. The purpose of doing a SWOT analysis is to provide your business with a solid strategy to grow your business.
A SWOT analysis is used widely as a tool to directly focus on the four key issues that affect the company. The aim of conducting a SWOT analysis is to recognize the strengths and weaknesses that are associated with opportunities and threats in specific circumstances. Existing businesses can utilize the benefits of SWOT to assess the market environment and respond productively. In fact, it will be best to conduct a strategy review meeting with all the key members and stakeholders once a year with information based on SWOT analysis.
SWOT analysis for a product can be used as a planning process. You cannot fit one size plan for all businesses, and it's better to think about unique SWOTs for new businesses. This way you can put your business on a right track and save your company from facing any kind of difficulties in the future. The organized list can be displayed in the simple form of a two-by-two grid. A company thinks that you have all the information needed to run a successful business, but once you do a SWOT analysis you be overwhelmed to see your business in new ways and directions.
When To Use SWOT Analysis
SWOT definition itself answers why and when to use a SWOT analysis. It is necessary if a business is planning operational goals and want to set various strategies.
One of the main reasons for doing SWOT analysis is to find areas and make improvements continuously where required. Every successful company that dominates the market consist of limited supply including workers, manufacturing capacity, and resources. If you assess your company strength, you can determine where to allocate available resources that will turn out to the maximum potential in increased revenue and profits. The management team is responsible for the company's pros and cons. The business often discovers the spots where strengths were not fully utilized to the maximum potential.
When you find any flaws in the past performance of the company or weakness is pointed out by the management team, it's not their fault. If your business was starting or at a critical stage, it was your responsibility to do a SWOT analysis earlier. This way the critical areas could be identified and improved so the business can stand out in the market with competitors. Competitive SWOT analysis for the evaluation of weaknesses can significantly prevent strategic errors before a product is launched in the market.
How to Do SWOT Analysis as A UX Designer
1. Decide Your Goals of Doing A SWOT Analysis
If you really want to get do a prominent SWOT analysis, you should keep your goals and objective in your mind right from the start. For example, if you do a SWOT marketing analysis first decide if you are making a change in the current processes or introducing a new product in the market.
2. Do a Business Research
Before you jump right to a SWOT analysis you can do some personal research and understand your business needs, other industries, and market value. Wide your range of perspectives collaborates with your team members, clients, and stakeholders. You can carry out market research and study more about your competitors.
3. Point out Your Business Strengths
You can identify your business strengths and make a list. For example, include strengths of financial resources, business location, competitiveness, cost advantages, and workers. Don't need to worry if your SWOT analysis list is not precise. You can find many new thoughts and ideas along the way for inspiration.
4. Point out Your Business Weaknesses
At this phase, you can identify your business weaknesses and make a list. They will be causing a disadvantage. Weaknesses include the new products not being manufactured, absence of new clients, staff not reliable, distance to market, reasons to order declining, and manufacturing factory location. Ensure that you address found weaknesses in SWOT analysis. The list of weaknesses can show how much a business progressed over time.
5. Keep Track Of Potential Opportunities and Threats
An opportunity may be a risk for your business. For example, if you were thinking about launching a new product in the market for consumers, but there is already the same product provided by your competitors. It's for your knowledge but you don't have to list a product for both opportunity and a threat in SWOT analysis. Opportunities also include new training courses, manufacturing technology, partnerships, a different marketplace, or change in government laws and regulations. Threats include increasing unemployment, competition, interest rates, and an unstable global market.
6. Develop a Strategy according To the Prioritized lists
Keep these things in mind while developing a strategy.
- How you can use your strengths and take them as an advantage?
- How you can use the given strengths to overcome the risks and threats?
- How you can use the opportunities and where?
- How you can minimize the identified threats and weaknesses?
Now you can conduct a SWOT analysis and create different strategies.
An Excellent Prototyping To Help You
Wondershare Mockitt is a free rapid prototyping tool with many features. Professionals of all fields are always in search of such a tool. Once you are done conducting a SWOT analysis, designers can create intuitive graphics on this platform. This tool provides features to create process data graphs, tables, and charts. Even beginners can operate this tool without any experience. An advantage of Mockitt is that you are free from worrying about writing a single line of code. This is an all-in-one platform to get your essential project related task delivered cost-effectively. This tool allows its users to work in an organized and sleek workplace. As a facility for UI/UX designers, a pre-defined library full of built-in templates and UI assets is available.
Wondershare Mockitt also provides features like timeless collaboration and you will be aware of any real-time changes. Users can use the interaction link and link area to display the relationship between screens and widgets. Flexible drag and drop feature is integrated for custom-sized layouts. The blending of object templates, add combos, and predefined widgets and icons into your graphic design projects are made easy. Users generate a QR code or URL and share their project details with clients and stakeholders. Ready to try it?