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Swot analysis by example. SWOT analysis of an enterprise - an example

(Please note that this analysis is provided for guidance only and is not affiliated with any active organization of the same name)

Characteristics of Gepard LLC

The founders of the company were a group of people specializing in the field of radio electronics. The company started its activity in 2005. A limited liability company was chosen as a form of business implementation. The authorized capital of the company was 20,000 rubles. Order fulfillment is the only financing option. The company is an exclusive developer of an intelligent security system for objects of various purposes. The enterprise needs to expand the production space necessary to increase the volume of production, and, consequently, to increase working capital.

Marketing plan

The company's current priorities are:

promotion of products in this market segment;
obtaining a certificate that will allow the company to reach a new level of sales;
raising the rating of the company and entering the leading positions in the field of video security systems.

SWOT analysis of Gepard LLC

This marketing method is a study of the company's capabilities. Further, based on the results obtained, recommendations are developed regarding the achievement of the set goals, as well as the identification of alternative development options.

First of all, it is necessary to give a full assessment of the company's macro and micro environments. The factors on which the assessment of the internal environment is traditionally based are:

organizational;
production;
marketing.

The external (macro) environment is assessed through analysis:

demand;
competition;
sales;
resource allocation;
factors beyond the control of marketing, such as the rate of inflation, the attractiveness of the sphere for incoming investors, and others.

Conducting directly the SWOT analysis itself is concluded in the following:

Based on the assessment made earlier, make a list of opportunities that the external environment allows the company to implement. Here you should compile a list of factors that will help increase demand for the company's products, reduce the level of competition, and others;
make a list of probable threats that can affect the enterprise from the outside. In this paragraph, we should talk about potential opportunities that can lead to a decrease in demand, change the priorities of the choice of ordinary consumers, increase the level of competition, and others;
make a list of the strengths of the company. We are talking about the skills of the staff and their competence, the existing level of knowledge, as well as other factors that ensure the successful operation of the entire company;
make a list of the firm's weaknesses. This paragraph highlights the most important reasons that hinder or can affect the development of the organization in the future.

When all the lists are ready, the most significant factors from all the lists compiled should be highlighted. This is a very important point, so only items that really do not play an important role should be discarded.

At the next stage, the classic SWOT-analysis matrix is filled in, which assesses the impact of macro- and microenvironments on the enterprise as a whole.

After a thorough evaluation, the following points remained:

1.Features :

sales of products;
assembly by the enterprise;
the possibility of warranty, as well as post-warranty service;
the ability to meet the requirements of the client;
flexible pricing policy;

2. Threats

taxation;
the constant growth of competition from larger manufacturers;
insufficiency of own working capital;
small capacity of this market niche;

3.Strength :

production of products on modern high-tech equipment;
flexible pricing policy;
high quality of service provision;
trained staff;

4. Weak side :

direct dependence on the consumer market;
lack of advertising;
a small number of own installation teams;
brand unknown.

Fill in the matrix table. The factors of the internal environment include the strengths of the company. External – opportunities and threats.

If the company has the ability to neutralize the threat or use the situation provided by the external environment, then a “+” sign is put in this column.

Put "-" is a sign that the company cannot get rid of the threat on its own, regardless of its strengths.

The graph remains free if there are no relationships between factors.

At the end of the procedure, not a single field should remain empty: each column must contain either “plus”, or “minus”, or “zero”.

Analysis results

The conducted SWOT-analysis showed the following results:

The company may increase, and thanks to its own research center, there is the possibility of implementing more advanced product variations.

The adopted tax system becomes the main threats and limiting the solvency of a potential client audience.

The weak side is the limitation of possible sales and direct dependence on the consumer market.

Analysis of existing management problems in Gepard LLC

The following tasks are set for the enterprise:

promotion of manufactured products in their market segment;
service improvement;
formation of a distribution network necessary to promote goods in the regions;
obtaining a certificate, which will enable the organization to reach a new level of sales;
raising the rating of the company and entering the leading position in the field of video security systems.

Tactics for the implementation of the tasks

Here, taking into account the specifics of the products produced, as well as the marketing analysis carried out, it is advisable to focus on direct marketing. It does not need large financial injections, but it requires coordination of work. Next, the directions in which the company should activate its activities will be considered.
Advertising
In this direction, priority will be direct mail to the addresses of potential customers. Also, the company's employees are required to visit nearby villages for the purpose of direct advertising. Additionally, aggressive advertising will be used.

Distribution

The first year of sales will mainly be carried out by employees of the company. But it is planned to attract firms that will install and adjust systems as dealers.

Increasing demand
Upon purchase, the customer will be provided with a product with a basic bundling system, but additional options will be available. As a bonus, you will be given the opportunity to install the system free of charge for up to 3 days, during which the client decides whether to purchase or reject this offer. This will additionally serve as an advertisement for potential customers (neighbors, friends, work colleagues, etc.).

Positioning strategy

After the company has chosen the most suitable market segment for itself, it faces the task of introducing it into the chosen market niche. In this situation, there are two options for achieving the goal:

Take a place in a small sub-segment in close proximity to a competitor, and then start the fight for a leading position in a selected market share.
Implement your task in a free subsegment.

Choosing the first option, the company should carefully weigh its own capabilities: is there enough internal potential to oust existing competitors.

The second option involves the provision of competitive products. The company gets a great chance to get its own audience interested in this product.

Product Existence Strategy

The marketing term "existence" means providing the product with the desired quality, affordability, attraction and pushing.

Accordingly, there are four types :

commodity;
price;
attraction;
pushing.

Let's consider each type in more detail.

The formation of any strategy of this type occurs according to the following plan:

compiling the company's product portfolio;
organizational issues related to the development of new products, changes to existing ones or the complete exclusion of goods are resolved;

A brand strategy plan is adopted.

According to the results of the assessments, the commodity group of the Gepard company belongs to the zone of priority development. This fact means that for the manufactured goods, the priority direction of development is the expansion of the existing market, as well as entering its new levels. Accordingly, additional funding and investment is directed in this direction.

Improvement strategy

The quality of the goods and services provided must be constantly improved. And the main direction in the development of this strategy is to keep the product at the current level that meets the requirements of the market at a given time.

The term "brand" hides the direct name of the enterprise or product. For Gepard, it is most profitable to use the multi-labeling strategy. This choice is due to the fact that the products (security systems) have been used for a long time and the use of the same name will make it possible to raise the overall image of the company. In the case of introducing updated products, this will also be only a plus.

Pricing strategy

In this case, emphasis should be placed on leadership based on the relatively low cost of the product, as well as its quality characteristics. The cost of goods produced by the Gepard enterprise is lower than that of competing enterprises, so you can try to win a large part of the market segment by offering a quality product at a lower price. Progress in this direction will maximize the market share. To increase income, it is necessary to focus on the value of the product / service provided.

Distribution strategy

Distribution methods are also considered to be controllable factors that help solve the problem of bringing the product to the direct consumer.

Before making a decision to open a branch, you should first get an assessment of the location region (whether the volume of potential customers is sufficient here). Competing companies cannot be ignored. It is worth evaluating the main characteristics of their activities. After carrying out comparative procedures, a list of the most suitable regions for placement should be compiled.
The choice from the compiled list is most preferably built based on the most commonly used scheme. The proposed region conditionally becomes the center of the range, where its influence extends. It is conditionally divided into 3 zones:

primary;
secondary;
extreme.

The primary zone includes almost 70% of the total number of consumers who use the services of the company. The remaining 25-30% of potential customers end up in the secondary zone. The extreme zone is casual consumers.

The choice of location area is additionally influenced by factors such as :

assessment of potential client base;
degree of competition;
assessment of technical capabilities and others.

It is the evaluation analysis of the above factors that makes it possible to calculate the potential of the selected sales point with the greatest accuracy.

In order to most effectively influence the potential target audience, a communication strategy is developed for the unit, which helps to form and maintain the desired image of the product and the company itself as an organization as a whole.

This strategy includes the following tasks :

conducting personal sales;

From this article you will learn:

What types of SWOT analysis method exist

When should you not use SWOT analysis?

The SWOT analysis technique has become very popular due to its simplicity and wide applicability. It can be used to assess the likely consequences of rational decisions in almost any area: both in business when developing a company's development strategy, choosing a marketing policy, etc., and in private life. The SWOT analysis method assumes that before making a decision, the situation was studied and understood. Let's look at it in more detail.

What is the essence of the SWOT analysis method

SWOT analysis is a way to assess the current situation in the business and the prospects for its development, identifying four key aspects: Strengths - strengths, Weaknesses - weaknesses, Opportunities - opportunities and Threats - threats.

Two of them - strengths and weaknesses - characterize the state of the internal environment of the company at the time of the analysis. The remaining aspects - threats and opportunities - relate to the external environment in which the business operates and which the entrepreneur or head of the firm cannot directly influence.

The method of conducting a SWOT analysis allows you to describe the situation clearly and structured, to conclude whether the company is developing in the right direction, what risks should be protected from and how exactly to implement it, what is the potential of the enterprise.

The SWOT analysis method is based on four main questions:

What can a businessman (organization) do?
What would he like to do?
What is generally possible in the current conditions?
What actions are expected from the company by its environment – clientele, partners, contractors?

By answering these questions, you can determine:

advantages of the company, its trump cards that can be used in the development strategy;
vulnerabilities that can be eliminated, compensated;
prospects, open ways of development of the company;
dangers and ways to protect yourself from them.

Why you need a SWOT analysis method

SWOT analysis is a simple and versatile method widely used in business and beyond. In business, when planning and developing a strategy, it can be used both separately and in conjunction with other marketing tools, which makes it very convenient for company managers and private entrepreneurs.

Outside of business, the SWOT analysis method allows you to identify priority areas for applying efforts (this applies to both professional and personal development), to find your true life goals and priorities in work and relationships.

In relation to business, SWOT analysis is used to:

collecting, summarizing and analyzing information about competitors through Porter models, PEST and other marketing methods;
creating a step-by-step plan for bringing the business strategy to life, working out its main directions and appointing persons responsible for the implementation;
competitive intelligence (search for the strengths and weaknesses of competitors) to form an effective development strategy.

Thus, wherever it is necessary to highlight the strengths and weaknesses of something (commercial activity, enterprise, individual), there is a place for the SWOT analysis method. Its product can be both a business strategy and a program for professional or personal growth.

Types of SWOT analysis method

Express version of SWOT-analysis. It occurs most often and is used to detect the main strengths of the company and its vulnerabilities. External threats and opportunities are also identified. This type of method is the easiest to use and gives a clear result.
Summary SWOT analysis. It focuses on the accounting and systematization of the main indicators of business performance at the current moment and its prospects in the future. A summary SWOT analysis is good because it allows you to quantify the factors identified by other methods included in the strategic analysis toolkit, to form a strategy and action plan aimed at achieving the main goals of the company.
A mixed SWOT analysis is an option that combines the first two. There are at least three of its varieties, in which the factors of influence are structured in the form of tables and form a cross matrix. However, the analysis of these types does not give a quantitative assessment of certain indicators. Thanks to the summary SWOT, you can deeply explore the received data and come to an accurate result.

SWOT analysis method by example

The main matrix of the SWOT analysis is as follows:

Consider the following situation: an individual entrepreneur is going to sell pies to grandmothers in small batches (and they, in turn, will resell them to the final buyer).

Here is how you can apply the SWOT analysis method to it:

Note that if the target audience is, for example, schoolchildren who buy pies for themselves (and not grandmothers-traders), then the SWOT analysis must be carried out again, since the initial data have changed.

SWOT project analysis

First of all, decide what goals you are going to achieve through the method, what tasks you face. If the project is devoid of goals and non-specific, the SWOT analysis will fail: there will simply be no place to take the initial data from.

Find potential strengths in your future (or existing) business. Make a complete list of them and start analyzing each of them. What characteristics and features make your idea realistic and promising? Are the means and tools with which you intend to implement your strategy effective, and by what means? How good an entrepreneur (or leader) are you yourself? What resources and assets are available to you? What do you manage to do better than your competitors? In general, conduct an audit and evaluate your capabilities.

Then, using the same method, you need to analyze the shortcomings of the business project under consideration. What factors hinder the solution of urgent problems? What business skills do you personally lack and how can they be “pumped”? What is the main vulnerability of your enterprise and personally you as a person and leader? What factors should be avoided? What can prevent you from taking advantage of the opportunities and benefits to achieve your goals?

The next step in the SWOT analysis is to list the available prospects for your project. You probably already actively use some of these favorable environmental factors to promote and optimize your business, list them. Don't forget potential opportunities. Describe the market situation in your niche. Think about what tools, tools, methods and benefits can be applied to make your project unique and in demand.

After that, proceed to the description of existing external dangers and threats. Which of these factors are or could be preventing you from achieving your intended outcome? Is there a large number of your competitors, enemies, ill-wishers who can harm the business and prevent it from developing? In the SWOT analysis method, threats and opportunities are always related to the external environment, and strengths and weaknesses are always related to the project itself.

When all the lists are compiled, proceed to the formation of conclusions and conclusions. They should provide answers to a number of important questions about how to competently use their strong positions, how to eliminate shortcomings and problem areas, how to take advantage of the opportunities that have opened up in practice, how to minimize risks and avoid dangers.

Listing, cataloging and studying these four groups of factors is not the main part of the SWOT analysis method. The most important thing happens later, when the data is already collected and structured: finding ways to turn problems into advantages, make strengths out of weaknesses, and make external threats serve your business.

If at this stage it becomes clear what measures and steps need to be taken, be sure to plan them for the near future and actively begin to implement them.

You are the head of the enterprise, but do you know everything about it? Are you ready to voice a clear plan for the further development of your own business? Difficult to answer? Then it is necessary to put into practice already well-proven marketing research. They have already helped millions of entrepreneurs to find the right solution. One of the main technologies is SWOT analysis.

What it is?

The abbreviation SWOT is an acronym for the following English words:

Strengths - strengths or advantages of the organization;
Weaknesses - weak points or shortcomings;
Opportunities - opportunities or external factors that, if properly applied, will create additional benefits for the company;
Threats - threats or possible circumstances that can harm the company.

A standard SWOT analysis is precisely a comprehensive assessment of the company's activities, and not only its strengths, but also its weaknesses. But in the terminology adopted in this analysis, they are called parties, respectively strong and weak. An assessment is made not only of probable threats from outside, but also of favorable opportunities. At the same time, the obtained results are necessarily compared with the indicators of the most strategically important competing firms.

Conducting a SWOT analysis helps answer questions such as:

Does the company make full use of personal strengths, as well as its distinctive features in the implementation of its own strategy?
Which of the weak qualities of the company need to be corrected accordingly?
Which of the potential opportunities offer a real chance of success if all possible resources are used and the qualifications of the firm are taken into account?
What likely threats should the manager pay attention to, and what actions should be taken in this case?

Marketers recommend choosing the time for carrying out a SWOT analysis when the direction in which the business is planned to develop in the future is formulated, and the period for determining the list of goals and setting tasks.

swot analysis matrix

During the analysis, specially designed templates are used, which are tables called SWOT-matrices. Which of them will be used during the implementation is a purely individual choice. It is worth noting that the results, regardless of the selected template, are completely identical.

Any swot analysis matrix filled in according to a specific pattern. The cells that describe the strengths of the enterprise are filled in first. Let's move on to its weaknesses. These two columns help describe the company's microenvironment.

To display the macro environment, you will need to fill in the two remaining columns. One of them should write down the opportunities, that is, the likely benefits that the company will be able to receive in the conditions of the current market, if there are no significant changes. And in the last column of the matrix, threats are recorded - those factors that can interfere with the development of the company's strengths and the use of the opportunities provided.

Microenvironment

Strengths include those moments where the company has significantly succeeded and what distinguishes it from competitors. Here you should also describe your competitive advantages, but be objective. These cannot be just allegations. They must be supported by certain indicators.

Such advantages may include:

unique resources of the company;
personnel with a high qualification level;
quality products;
brand popularity.

The weaknesses of the company include factors that drive it into a more unfavorable framework in comparison with potential competitors. As an example of a company's weakness, one can point to a limited range of products or services provided, a not too good reputation, little funding, or a relatively poor level of customer service.

macro environment

As you remember, the macro environment in the SWOT analysis is presented in the form of probable opportunities or potential threats.

Opportunities should include the most favorable circumstances, using which the company receives additional benefits. It is the opportunities that contribute to the development of the strengths of the enterprise.

Threats are probable events, in the event of which the enterprise may find itself in not very favorable conditions for further development. Examples of such events may be the emergence of new competing companies on the market, an increase in tax rates, a change in demand from buyers.

Additional materials

The swot analysis matrix for a more complete and truthful filling will require additional information. Let's consider this point in more detail. All available data will be required for the following categories:

Management

It contains all the information related to the construction of the work of the entire company. These are the qualifications of the employees of the enterprise, the connections that determine the level of interaction between all departments, etc.

Production

In this category, an assessment is made of production capacities, the quality of existing equipment, and the degree of its wear. The quality of manufactured goods, the availability of patent or license documentation, if required, the cost of the manufactured goods are also considered. Additionally, the reliability of partners performing the role of suppliers, the level of service, etc. are evaluated.

Finance.

This is the most important category that requires detailed consideration. It is here that the clearest gradation of the strengths and weaknesses of the business in question is observed. These are the costs of the production process, the availability and speed of turnover of cash capital, the financial stability of the enterprise and its profitability.

Innovation.

How often are customers provided with an updated product list? What is the level of quality and how fast is the payback of capital investments? This subparagraph should contain answers to all the questions posed.

Marketing

consumer reactions to manufactured goods;
your brand awareness;
the range of products presented by the enterprise;
pricing policy;
the effectiveness of ongoing advertising campaigns;
additional services offered by the company.

Rules for performing a SWOT analysis

In order to avoid possible mistakes in practice and get the maximum benefit from the conducted marketing research, strict adherence to several rules is required.

As far as possible, try to narrow down the field of activity in which the analysis will be carried out. If you perform this procedure simultaneously for all the activities of the enterprise, then the data obtained will be too general and absolutely useless from a practical point of view. Focusing the analytic process on a company's position in a particular market segment will help provide more specific data.

In the process of filling in the matrix columns in macro and micro environments, be correct in drawing conclusions regarding strengths/weaknesses and opportunities/threats for certain factors. Weak or strong qualities are represented by internal characteristics of the company. Whereas the second pair characterize the situation in a in a given time period, and cannot be regulated by management.

Qualitative performance of the analysis is possible only when all the data were completely objective. This strategic analysis should be made on the basis of the comprehensive information provided. The study cannot be entrusted to one specialist, since the information received may well be distorted by his personal subjective perception. In this marketing research, it is necessary to take into account the point of view of each functional unit of the enterprise. All data entered in the SWOT matrix must be confirmed by the available facts or the results of previous research activities.

It is absolutely unacceptable to use lengthy formulations or the possibility of its double interpretation. The more specifically the factor is formulated, the more clear will be its influence in the future on the activities of the company as a whole. And accordingly, the results obtained after the completion of the analysis will be of the greatest value.

Weaknesses of SWOT Analysis

SWOT analysis is just a simple tool for organizing information. This marketing procedure does not provide any specific answers or clear recommendations. It only helps to more adequately assess the main factors and, with a certain degree of probability, predict the occurrence of certain events. Formulating any recommendations based on the data received - this procedure is already within the competence of the analyst.

In addition, the apparent simplicity of this strategic analysis is very misleading. The veracity of the result, and, accordingly, the development of further transformations are highly dependent on the completeness and quality of the information provided. To really get the most real data, either the participation of an expert who is able to assess the current state and the likely path for further development of the market will be required, or it will be necessary to carry out a very painstaking work of collecting and then analyzing the information received in order to achieve this understanding.

Errors that may be made when filling in the matrix table are not detected during the analysis. Therefore, the addition of an extra factor or, on the contrary, the loss of an important one or other inaccuracies lead to an erroneous conclusion, and hence an incorrect development of a further strategy.

SWOT analysis example

The analysis example shown is for demonstration purposes only. It shows the entire sequence of steps that will help you perform a SWOT analysis.

Determination of strengths / weaknesses (sides)

First of all, analyze all possible options. Each of the directions should contain at least 3 parameters that helped to assess the competitiveness of the business.

For example, let's take such a direction as "the appearance of the product." To analyze it, you will need to answer questions such as:

how much better/worse is the appearance of the packaging than the competing company;
convenience of packing in comparison with a competing company is better/worse;
how much better/worse the package design is compared to a competitor, etc.

We check the importance of identified strengths/weaknesses

Not the entire list from the first paragraph will be required to fill in the matrix. Now you should exclude minor items. To choose the right parameters, you should evaluate the impact of each in terms of potential customer satisfaction, as well as the profit generated.

The results of such a check will help to exclude parameters that play a minor role. The final rating of the microenvironment will be fully prepared.

Identifying likely growth paths

At this stage, you will need to write potential options that can . Two questions will help you with this:

how the company can increase the level of sales;
What are the ways to reduce production costs?

Make a comprehensive list of opportunities that will help your business grow. The following options are examples:

new sales territory;
expansion of the range;
influx of new consumers, etc.

Next, an assessment is made, and opportunities that do not have a decisive impact on profits and customer satisfaction are excluded. Having fully analyzed the entire list received, we cross out opportunities that do not have a strong impact on profits and customer satisfaction.

Identifying Potential Threats

This section should list options for potential threats. For example, why customers may refuse to purchase an enterprise product:

change in habitual lifestyle;
decrease in the income level of the population;
changed requirements for product quality, etc.

Then we exclude threats that do not threaten the development of the enterprise over the next 5 years.

Filling the matrix

Now that all the data has been received, we fill in the standard template. At the same time, the rating of all indicators is necessarily preserved. Further, based on the SWOT information, recommendations are made for the further development of the enterprise.

You can find a detailed swot-analysis, strategy and methods of conducting on the example of a particular enterprise in this article:

You can also watch the compilation of a swot analysis on the video.

Life forces us to make decisions every day. And every decision we make, in one way or another, affects our future. Some decisions affect our fate for years and even decades. To make any important decision, a thorough analysis of what is happening is necessary, it is necessary both in business and in everyday life. Qualitative analysis is a very difficult task. And despite the fact that absolutely every person needs to be able to do it, this management function is not taught at 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 its consideration 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 time. Opportunities and threats are environmental factors, they may or may not occur, it also depends on your actions and decisions.

For the first time, the abbreviation SWOT sounded at Harvard in 1963 at a conference on business policy problems by Professor Kenneth Andrews. In 1965, SWOT analysis was proposed to develop a strategy for the behavior of a firm.

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 the right and informed decisions. SWOT analysis occupies a significant role in it, it should be mastered by everyone involved in personnel management and marketing.

Rules for conducting a SWOT analysis

Before you start compiling a SWOT analysis, you need to learn a number of rules.

Need choose the most specific area of research. If you choose too wide an area, then the conclusions will not be specific and poorly applicable.
Clear separation of elementsSWOT. Do not confuse strengths and capabilities. Strengths and weaknesses are the internal features of the organization that are subject to it. Opportunities and threats are related to the external environment and are not directly influenced by the organization, the organization can only change its approach and adapt to them.
Avoid Subjectivity. It will be naive to rely on your opinion if the market does not agree with it. Perhaps you think your product is unique, but you should first of all ask consumers about this. Without them, your personal opinion has no value.
try use the opinion of as many people as possible. The larger the sample, the more accurate the study. Remember about?
The most specific and precise wording. I often ask my subordinates - “what needs to be done to earn more?” They almost always tell me that I need to work harder. This is not a specific wording, 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 decide who to spend the weekend with or what business to invest your millions in, the essence and appearance of the SWOT analysis will remain the same. The SWOT matrix looks like this:

The first line and the first column are indicated just for ease of understanding, it is not necessary to draw them 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 information as possible. It is advisable to first write more significant factors, then move on to less significant ones.

We analyze strengths and weaknesses

Surprisingly, it is with the description of strengths that the most problems arise for people who have taken up SWOT analysis for the first time. In general, you can ask for help in assessing your employees, friends and acquaintances, but it is better to learn how to analyze on your own. Strengths and weaknesses are evaluated according to the same parameters.

In business, strengths are evaluated primarily by 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 understanding of employees what to do;
Finance and access to money;
Clearly. This is a very important success factor, the absence of a sales department is a serious obstacle and absorber of other resources;
Thoughtful 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;
Relations in society, useful contacts and other opportunities to use the administrative resource;
Recognition and authority;
Availability of material resources;

When analyzing strengths, you should focus on what you like to do and what you are good at. As a rule, what we do not like is worse for us.

Analysis of opportunities and threats

Opportunities and threats create changes in the environment and those changes that you personally can undertake. It is worth noting that in order 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, among other things, the most pessimistic scenario for the development of the situation.

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

Market trends. Increase or decrease in demand.
economic situation in the country. In the years of economic growth, business, other things being equal, will grow in proportion to the growth of the economy, and vice versa.
Competition, the absence of competitors today does not guarantee their absence tomorrow. The arrival of a major player on the market can turn the industry upside down.
Infrastructure changes. Major infrastructure changes can bring both profit and loss.
Legislation and political trends. Probably, in the year 2003 no one imagined that in 5 years all the casinos would be closed.
Technological revolutions. Progress inevitably destroys entire industries, while creating new ones.

In any business area there are 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 will need on which you will work. To do this, perform the following steps:

It is necessary to rank all factors according to the degree of influence;
All far-fetched and unimportant factors must be excluded;
We analyze how your strengths can help you avoid threats and achieve opportunities;
See what impact your weaknesses can have on opportunities and threats;
How strengths can help correct weaknesses;
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 a descriptive assessment of the situation. It does not analyze large arrays of analytics and does not compare indicators over the past years. SWOT does not quantify 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 has received the widest application in management, primarily for the strategic planning of an organization's activities.

SWOT introspection

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 set goals both at work, for example, what line of work you should be engaged in, 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 managerial 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 comes for an interview.

Have you ever wondered what a good military leader does before a fight? He studies the field of the upcoming battle, looking for all the winning hills and dangerous swampy places, assesses his own strength and the strength of the enemy. If he does not, he will doom his army to defeat.

The same principles work in business. Business is a never-ending series of small and large battles. If you do not assess the strengths and weaknesses of your enterprise before the battle, do not identify market opportunities and threats (the very uneven terrain that becomes of great importance in the heat of battle), your chances of success will decrease dramatically.

In order to get a clear assessment of the strength of your company and the situation in the market, there is a SWOT analysis.

SWOT-analysis is the definition of the strengths and weaknesses of your enterprise, as well as the opportunities and threats coming from its immediate environment (external environment).

Strengths (S trainingths) benefits your organization;
Weaknesses (W eaknesses) your organization's shortcomings;
Possibilities (O pportunities) environmental factors, the use of which will create advantages for your organization in the market;
Threats (T hreats) factors that could potentially worsen your organization's market position.

The use of SWOT analysis will allow you to systematize all available information and, seeing a clear picture of the "battlefield", make informed decisions regarding the development of your business.

SWOT analysis in the marketing plan of your company

SWOT-analysis is an intermediate link between the formulation of the mission of your enterprise and the definition of its goals and objectives. Everything happens in the following sequence (see Figure 1):

You have determined the main direction for the development of your enterprise (its mission)
Then you weigh your strengths and assess the market situation in order to understand whether you can move in the indicated direction and how best to do it (SWOT analysis);
After that, you set goals for your enterprise, taking into account its real capabilities (determining the strategic goals of your enterprise, which will be devoted to one of the following articles).

So, after conducting a SWOT analysis, you will have a clearer idea of the advantages and disadvantages of your enterprise, as well as the situation in the market. This will allow you to choose the best development path, avoid dangers and make the most of the resources at your disposal, while taking advantage of the opportunities provided by the market.

Even if you are sure that you are already well aware of everything, we still advise you to conduct a SWOT analysis, as in this case it will help to structure the available information about the enterprise and the market and take a fresh look at the current situation and opening prospects.

How to conduct a SWOT analysis

In general, conducting a SWOT analysis comes down to filling in the matrix shown in Figure 2, the so-called. SWOT Analysis Matrices. In the appropriate cells of the matrix, you need to enter the strengths and weaknesses of your company, as well as market opportunities and threats.

Strengths your business, something it excels at or a feature that gives you more value. Strength may lie in your experience, access to unique resources, advanced technology and modern equipment, highly qualified personnel, high quality of your products, brand awareness, etc.

Weaknesses in your business are the absence of something important to the operation of the business, or something that you are not yet able to achieve compared to other companies and puts you in a disadvantageous position. As an example of weaknesses, one can cite a too narrow range of manufactured goods, a bad reputation of the company in the market, lack of funding, low level of service, etc.

Market opportunities are favorable circumstances that your business can take advantage of. As an example of market opportunities, we can cite the deterioration of the position of your competitors, a sharp increase in demand, the emergence of new technologies for the production of your products, an increase in the level of income of the population, etc. It should be noted that the opportunities in terms of SWOT analysis are not all the opportunities that exist in the market, but only those that your company can use.

Market Threats Events that could adversely affect your business if they occur. Examples of market threats: new competitors entering the market, tax increases, changing consumer tastes, declining birth rates, etc.

Note: the same factor for different enterprises can be both a threat and an opportunity. For example, for a store that sells expensive products, the growth of household income may be an opportunity, as it will lead to an increase in the number of customers. At the same time, for a discount store, the same factor can become a threat, as its customers with rising salaries can move to competitors offering a higher level of service.

So, we have determined what should be the result of the SWOT analysis. Now let's talk about how to come to this result.

From words to deeds

Step 1. Determining the strengths and weaknesses of your enterprise

The first step of a SWOT analysis is to assess your own strengths. The first stage will allow you to determine what are the strengths and weaknesses of your enterprise.

In order to determine the strengths and weaknesses of your enterprise, you need to:

Make a list of parameters by which you will evaluate your company;
For each parameter, determine what is the strength of your enterprise, and what is weak;
From the entire list, select the most important strengths and weaknesses of your enterprise and enter them into the SWOT analysis matrix (Figure 2).

Let's illustrate this technique with an example.

So, you have already done a significant part of the work on the SWOT analysis of your enterprise. Let's move on to the second step, identifying opportunities and threats.

Step 2. Identify market opportunities and threats

The second step of the SWOT-analysis is a kind of “reconnaissance of the area” market assessment. This stage will allow you to assess the situation outside your enterprise and understand what opportunities you have, as well as what threats you should be aware of (and, accordingly, prepare for them in advance).

The methodology for identifying market opportunities and threats is almost identical to the methodology for determining the strengths and weaknesses of your enterprise:

Let's move on to an example.

As a basis for assessing market opportunities and threats, you can take the following list of parameters:

Demand factors (here it is advisable to take into account the market capacity, the rate of its growth or contraction, the structure of demand for the products of your enterprise, etc.)
Competition factors (you should take into account the number of your main competitors, the presence of substitute products on the market, the height of barriers to entry and exit from the market, the distribution of market shares among the main market participants, etc.)
Sales factors (it is necessary to pay attention to the number of intermediaries, the availability of distribution networks, the conditions for the supply of materials and components, etc.)
Economic factors (taking into account the exchange rate of the ruble (dollar, euro), inflation rate, changes in the level of income of the population, tax policy of the state, etc.)
Political and legal factors (the level of political stability in the country, the level of legal literacy of the population, the level of law-abidingness, the level of corruption in power, etc.) are assessed.
Scientific and technical factors (the level of development of science, the degree of introduction of innovations (new goods, technologies) into industrial production, the level of state support for the development of science, etc. are usually taken into account)
Socio-demographic factors (you should take into account the size and age and sex structure of the population of the region in which your enterprise operates, the birth and death rates, the level of employment, etc.)
Socio-cultural factors (traditions and the system of values of society, the existing culture of consumption of goods and services, existing stereotypes of people's behavior, etc. are usually taken into account)
Natural and environmental factors (taking into account the climatic zone in which your company operates, the state of the environment, public attitudes towards environmental protection, etc.)
And finally international factors(among them, the level of stability in the world, the presence of local conflicts, etc. are taken into account)

Then, as in the first case, you fill in the table (Table 2): in the first column you write down the evaluation parameter, and in the second and third columns, the existing opportunities and threats associated with this parameter. The examples in the table will help you understand how to list the opportunities and threats in your business.

Table 2. Identifying Market Opportunities and Threats

Evaluation parameters	Possibilities	Threats

1. Competition	Barriers to entry to the market have increased: from this year it is necessary to obtain a license to engage in this type of activity	A major foreign competitor is expected to enter the market this year

2. Sales	A new retail chain has appeared on the market, which is currently choosing suppliers	Starting this year, our largest wholesale buyer selects suppliers based on the results of a tender

3. etc.

After filling in Table 2, as in the first case, you need to select the most important ones from the entire list of opportunities and threats. To do this, you need to evaluate each opportunity (or threat) in two dimensions by asking yourself two questions: “How likely is it that this will happen?” and “How will this affect my business?”. Select those events that are highly likely to happen and have a significant impact on your business. Enter these 5-10 opportunities and approximately the same number of threats into the appropriate cells of the SWOT analysis matrix (Figure 2).

So, the SWOT analysis matrix is completed, and you see before you a complete list of the main strengths and weaknesses of your enterprise, as well as the opportunities and dangers that open up for your business. However, that's not all. Now you need to take the final step and match your company's strengths and weaknesses with market opportunities and threats.

Step 3: Matching the Strengths and Weaknesses of Your Enterprise with Market Opportunities and Threats

Matching strengths and weaknesses with market opportunities and threats will allow you to answer the following questions regarding the further development of your business:

How can I take advantage of the opportunities that are opening up, using the strengths of the enterprise?
What weaknesses of the enterprise can prevent me from doing this?
What strengths can be used to neutralize existing threats?
What threats, exacerbated by weaknesses in the enterprise, should I be most wary of?

To compare the capabilities of your enterprise to market conditions, a slightly modified SWOT analysis matrix is used (table 3).

Table 3. SWOT Analysis Matrix

POSSIBILITIES

1. Emergence of a new retail network
2. etc.

THREATS

1. Emergence of a major competitor
2. etc.

STRENGTHS

1. High quality products
2.
3. etc.

1. How to seize opportunities
Try to become one of the suppliers of the new network, focusing on the quality of our products

2. How you can reduce threats
Keep our customers from switching to a competitor by informing them about the high quality of our products

WEAK SIDES

1.High production cost
2.
3. etc.

3. What can prevent you from taking advantage of opportunities
The new chain may refuse to purchase our products, as our wholesale prices are higher than those of competitors

4. The biggest dangers for the firm
An emerging competitor can offer the market products similar to ours at lower prices.

Once you complete this matrix (which we hope our examples will help you with), you will find that:

identified the main directions of development of your enterprise(Cell 1 showing how you can take advantage of the opportunity);
formulated the main problems of your enterprise, to be resolved as soon as possible for the successful development of your business (the remaining cells of table 3).

Now you are ready to set goals and objectives for your enterprise. However, we will talk about this in one of the following articles, and now we will dwell on the question that is probably of interest to you:

Where can I get information for conducting a SWOT analysis?

In fact, most of the information needed to conduct a SWOT analysis is already at your disposal. Basically, this is, of course, data on the strengths and weaknesses of your enterprise. All you have to do is to collect all these disparate facts (taking reports from accounting, production and sales departments, talking with your employees who have the necessary information) and organize them. It will be better if you can involve several key employees of your enterprise in the collection and analysis of this information, since it is easy to miss any important detail alone.

Of course, information about the market (opportunities and threats) is somewhat more difficult to obtain. But even here the situation is not hopeless. Here are a few sources you can get useful information from:

results of marketing research, reviews of your market, which are sometimes published in some newspapers (for example, Delovoy Peterburg, Vedomosti, etc.) and magazines (for example, Practical Marketing, Exclusive Marketing, etc.);
reports and collections of the State Statistics Committee and Petersburgkomstat (information on the population, mortality and birth rates, age and sex structure of the population and other useful data);
finally, you can get all the necessary information by ordering a marketing research from a specialized company.

We will tell you more about the sources and methods of collecting information that you may need to conduct a SWOT analysis in the following articles. Now let's sum up all of the above.

Summary

SWOT analysis this is a definition of the strengths and weaknesses of your enterprise, as well as opportunities and threats coming from its immediate environment (external environment).

SWOT analysis will allow you to choose the best way to develop your business, avoid dangers and make the most of the resources at your disposal.

The procedure for conducting a SWOT analysis in general comes down to filling out a matrix that reflects and then compares the strengths and weaknesses of your enterprise and the opportunities and threats of the market. This comparison allows you to determine what steps can be taken to grow your business and what problems you urgently need to address.

The following materials were used in preparing the article:

Zavgorodnyaya A.V., Yampolskaya D.O. Marketing planning. St. Petersburg: Peter. 2002. 352p.

Kotler F. Marketing management. St. Petersburg, Peter Kom, 1998. 896p.

Solovieva DV Electronic course of lectures on modeling. 1999.