Application of swot analysis in practice by example. SWOT analysis on the example of an enterprise - an assistant in creating a strategy

SWOT analysis- one of the most common methods that evaluate in a complex internal and external factors influencing the development of the company. It is an analysis of the strengths and weaknesses of the organization, as well as opportunities and threats from external environment. "S" and "W" refer to the state of the company, and "O" and "T" to the external environment of the organization.

SWOT analysis is a preliminary research stage in the preparation of strategic plans, the development of strategic goals and objectives of the company.

The term SWOT was first used by Kenneth Andrews in 1963 at the Harvard Business Policy Conference.

Term in English: SWOT analysis.

Main parameters of SWOT-analysis

SWOT stands for:

strengths- strengths

Weakness- weak sides,

Opportunities- opportunities,

Threats- Threats.

Based on the results of the situational analysis, it is possible to assess whether the company has the internal forces and resources to realize the existing opportunities and withstand external threats. Accordingly, an analysis of the internal and external situation is necessary.

When evaluating external situation worth considering:

• legislation and political climate,
• expected or possible changes that may affect the operation of the company. (Ex: changes in customs legislation);
• the economic situation of the country, region (changes in GNP indicators, possible major changes in the economy that potentially affect the company, expected inflation);
• socio-demographic factors;
• technology change (waiting for technical innovations);
• ecological environment.

During the analysis internal situation company, the resources of the company, its business processes are evaluated, competitiveness is analyzed.

In the course of the analysis, the formulation of the company's sustainable competitive advantages is confirmed or changed. Key analysis factors:

Method decoding

The main idea of ​​the technique SWOT Analysis is to try to calculate by calculation how much each of possible ways development will be able to influence the success of the current, tactical and strategic business processes of the enterprise. When ranking threats in the SWOT analysis matrix by the degree of impact, it is supposed to determine the estimated time at which the enterprise will reach a certain degree of destruction, and the sooner the indicators will deteriorate economic activity, the more attention should be paid to the elimination of this threat. After the full completion of work, based on a SWOT analysis and associated with identifying the greatest threats to the enterprise and determining priority areas for development that promise the greatest economic effect with the available financial and human resources, the next stage begins to optimize the work of personnel.

The results of the SWOT analysis are entered into tables.

Decisive for success are always specific actions (measures) associated with specific goals and consistently implemented.

Nextmistakesmost often found in SWOT analysis tables:

1. Conducting a SWOT analysis without a pre-established overall goal. SWOT is not an abstract analysis, its use implies the achievement of a specific goal

2. External chances are often confused with internal strengths (Strengths) of the company, while they should be strictly demarcated.

3. SWOT analysis is often confused with all kinds of strategies. We must not forget the main difference between one and the other (SWOT analysis describes states, and strategy describes actions)

4. In the process of SWOT-analysis, priorities are not identified, specific activities are not named. SWOT analysis.

Rules for conducting a SWOT analysis

No formal training is required to conduct a SWOT analysis. Any manager who is familiar with the affairs of the company and familiar with the market can make simple form SWOT.
But this simplicity and ease of use has a downside. There is a risk of misuse, hasty and meaningless conclusions, use of vague and ambiguous concepts. In addition, do not forget that for the objectivity of the picture it is necessary to use only relevant, verified and fresh information for analysis, which many users simply forget about.
Here are a few simple rules, which will help you avoid such mistakes and get the most out of your SWOT analysis.
Rule 1. For an objective SWOT analysis, a business must be segmented into areas or specific markets. A general analysis that covers the entire business is inappropriate, as the results will be too generalized and useless. Focusing the SWOT analysis on a specific segment will ensure that the company's most important strengths, weaknesses, opportunities, and threats are identified.
Rule 2. One must be aware that the SWOT elements differ significantly from each other, in particular with regard to origin and spheres of influence. For example, strengths and weaknesses are internal characteristics company, therefore, they are under its control. Opportunities and threats are external, objective, independent characteristics of the market environment, and they are not subject to the influence of the organization.
Rule 3. The strengths and weaknesses of the company are subjective concepts. But opinions about these characteristics should be expressed not by managers or even competitors, but by customers, buyers, partners, investors. How they consider and perceive these elements is the way it is. Strengths will be considered as such as long as the market perceives them as competitive.
Rule 4 For objective analysis, diversified input data should be used. Even if it is not possible to obtain the results of extensive marketing research, this does not mean that it is enough to limit oneself to the achievements of one person. For accuracy and depth of analysis, it is best to organize a group discussion with an exchange of ideas, to learn and take into account the points of view of all functional departments of the company. Any information or source data must be supported by substantiated evidence (legal letters, verified citations, industry statistics, press reports, information from dealers, customer opinions and comments, government publications).
Rule 5. The more precise the formulations, the more useful the analysis will be. Therefore, long, unspecified, and ambiguous statements that mean nothing to most buyers should be avoided.

Pros and cons

SWOT analysis is often criticized. This is a standardized analysis scheme that is not suitable for all enterprises and firms.

Benefits of a SWOT Analysis

• Helps the company to use internal strengths or differentiating advantages in its strategy.
• If strong distinctive advantages the company does not yet have, it is possible to analyze its potential strengths and use them to achieve marketing goals.
• Analyze all the weaknesses and vulnerabilities of the company in order to understand whether they affect competition, market position, can they be corrected based on strategic considerations?
• Know what resources and skills are best used to maximize opportunities.
• Identify the threats that are the most critical for the company, take a number of strategic actions for good protection.

disadvantages

• SWOT analysis is just a tool for obtaining visual structured information, it does not contain clear recommendations or specific formulated answers. Next is the work of the analyst.
• The simplicity of the SWOT analysis is deceptive; its results are extremely dependent on the completeness and quality of the source information. An objective SWOT analysis requires experts with a deep understanding of market development trends and its current state, or a large amount of work to collect and analyze primary information.
• In the process of generating tables, mechanical errors can be made (loss of important factors or inclusion of unnecessary ones, incorrect estimation of weight coefficients, etc.). They are difficult to identify, except for very obvious errors, but they affect the process of further analysis and lead to incorrect conclusions and erroneous strategic decisions.

Literature and references

This is a stub for an encyclopedic article on this topic. You can contribute to the development of the project by improving and supplementing the text of the publication in accordance with the rules of the project. You can find the user manual

Success in life is probably possible when you use your talents to the fullest. You will also need to deal with your weaknesses so that they do not interfere with your life and work. It was for these purposes that the SWOT analysis was transferred to the field of self-development.

What makes the SWOT model especially powerful is that it helps to identify opportunities in our world that don't appear to be at first glance. It will also help in the development of your business or your work. The model considers four characteristics:

• S - Strengths (strengths)
• W - Weaknesses (weaknesses)
• O - Opportunities (opportunities)
• T - Threats (threats)

Let's consider them in more detail.

SWOT

Strengths

• What strengths do you have that others don't? For example, skills, education, connections.
• What do you do better than others?
• What resources do you have access to?
• What other people think is yours strong point?
• What accomplishments are you most proud of?
• What values ​​do you believe in that others do not believe in?
• Do you have connections with important people?

This list of questions is quite objective, because it takes into account not only your opinion, but also the opinion of others. Knowing your strengths makes a person happier and allows you to apply them in your work.

If you are having trouble identifying your strengths, write down a list of your personal characteristics. Some of them will be your strengths. Especially appreciated are those that others do not have. For example, if you know her very well and are surrounded by people who know her even better, this may not be your strong point. But if you are the kindest and most tactful among all your friends (and they confirm this), then it's them.

Weak sides

• What tasks do you most often avoid because you feel insecure?
• What exactly do people around you consider your weaknesses?
• Are you absolutely confident in the usefulness of your education and skills? If not, what are you weakest at?
• What are your negative work habits? For example, you are often late, disorganized, short-tempered, or unable to cope with.
• Do you have character traits that constantly hold you back and prevent you from progressing? For example, it could be a fear of speaking in public, even though this is your main responsibility.

Again, weaknesses are seen not only from your point of view, but also from the point of view of others. Listen to what is being said about you. Even if people are wrong, you are perceived that way, which means they will treat you accordingly.

Opportunities

• What new technologies will help you? What can you find on the Internet from what you need?
• Is your industry growing? What advantage can we get from this?
• Do you have strategic contacts with other people who will help you?
• What trends and patterns do you see in the world or your company that will help you in the future?
• Have your competitors failed trying to achieve something important? If so, what conclusions can you draw to avoid their mistakes?
• What does your company need?
• What are your customers and suppliers complaining about? What can you offer them?

You may find the following options useful:

• , courses, conferences.
• A new role in a company or project can enhance your existing skills and acquire new ones.
• Learn English in order to have more business opportunities.

Re-examine your sides and think about how to use them most effectively in order to open up new opportunities.

Threats

• What difficulties do you face at work?
• Are there colleagues who compete with you?
• Does the essence of your work and the requirements for it change?
• Is the development of new technologies a threat to you and your profession?
• Can your weaknesses become a threat to your future?

It is important to know what threats you face or will face in life, because being aware of them will help you figure out which strengths to develop and which weaknesses to get rid of.

Example

Here's what your SWOT analysis might look like:

Strengths

• I creative person. I often surprise clients and boss with new ideas.
• I can communicate with people and convince them.
• I have the ability to ask the right questions.
• I can think and often make the right conclusions.

Weak sides

• I have an impulsive need to complete the things on my list as quickly as possible. This affects the quality of work.
• I lose myself in stressful situations.
• I have a fear of public speaking.

Opportunities

• I'm organizing a conference next week. This is a great chance to meet new and important people.
• Our art director is going on maternity leave soon. This is a great opportunity to develop my skills.

Threats

• I work too hard, so my creativity drops.
• A fall in the level of the economy can lead to a fall in our market.
• My colleague, who knows how to speak in public, and in general is more sociable than me, is applying for the position of art director.

By learning the four components, you can find the solution and be successful. Remember that the model itself is not capable of doing miracles, it only indicates and hints to you what needs to be done.

SWOT analysis is a great way to find a starting point and explore yourself. It allows you to face the truth, albeit sometimes unpleasant. SWOT empowers you to focus on strengths, minimize weaknesses, avoid threats, and seize opportunities.

We wish you good luck!

SWOT is an acronym for Strengts (strengths), Weaknesses (weaknesses), Opportunities (opportunities) and Threats (threats). Interior setting firm is reflected mainly in S and W, and external - in O and T. SWOT analysis is a development stage

The SWOT analysis methodology involves, firstly, identifying the internal strengths and weaknesses of the company, as well as external opportunities and threats, and, secondly, establishing links between them.

SWOT analysis helps answer the following questions:

Does the company use internal strengths or differentiating advantages in its strategy? If the company does not have distinctive advantages, what potential strengths could be?
- Are the weaknesses of the company its vulnerabilities in competition and / or they do not give the opportunity to use certain favorable circumstances? What weaknesses require adjustment based on strategic considerations?
- what are the opportunities that give the company a real chance of success when using its skills and access to resources? (opportunities without a way to implement them are an illusion, the strengths and weaknesses of the firm make it better or worse adapted to exploiting favorable opportunities than other firms).
- what threats should the manager be most concerned about and what strategic actions should he take for a good defense?

The table provides examples of the main factors that should be taken into account in a SWOT analysis.

Potential internal strengths(S):	Potential Internal Weaknesses(W):
Clearly demonstrated competence	Loss of some aspects of competence
Adequate financial sources	Unavailability of funds needed to change the strategy
The high art of competition	Market art is below average
Good understanding of consumers	Lack of analysis of consumer information
Recognized market leader	Weak market participant
Clearly articulated strategy	Lack of a clearly defined strategy, inconsistency in its implementation
Use of economies of scale in production, cost advantage	High cost of products in comparison with key competitors
Own unique technology, best production capacity	Outdated technology and equipment
Proven reliable management	Loss of depth and control flexibility
Reliable distribution network	Weak distribution network
High art R&D	Weak position in R&D
The most effective advertising in the industry	Weak promotion policy
Potential External Opportunities(O):	Potential external threats(T):
Ability to serve additional consumer groups	Weakening market growth, adverse demographic changes entering new market segments
Expanding the range of possible products	Increasing sales of replacement products, changing tastes and needs of customers
Complacency of competitors	Raging competition
Reduction of trade barriers in entering foreign markets	The emergence of foreign competitors with low-value goods
Favorable shift in exchange rates	Unfavorable shift in exchange rates
Greater availability of resources	Strengthening supplier requirements
Relaxation of restrictive legislation	Legislative price regulation
Easing business volatility	Sensitivity to instability external conditions business

The classic SWOT analysis involves identifying strengths and weaknesses in the company's activities, potential external threats and favorable opportunities and scoring them relative to industry averages or in relation to data from strategically important competitors. The classic presentation of the information of such an analysis was the compilation of tables of strengths in the activities of the company (S), its weaknesses (W), potential favorable opportunities (O) and external threats (T).

The resulting SWOT matrix looks something like this:

At the intersection of SW with OT, an expert assessment of their mutual influence in points is put down. The total score for rows and columns shows the priority of taking into account one or another factor in the formation of a strategy.

Based on the results of the SWOT analysis, a matrix of strategic measures is compiled:

SO- activities that need to be carried out in order to use the strengths to increase the company's capabilities;
WO- activities that need to be carried out, overcoming weaknesses and using the opportunities presented;
ST- activities that use the strengths of the organization to avoid threats;
wt- measures that minimize weaknesses to avoid threats.

Rules for conducting a SWOT analysis

In order to avoid possible mistakes in practice and get the most out of a SWOT analysis, you need to follow a few rules.

1. If possible, specify the scope of the SWOT analysis as much as possible. When conducting an analysis covering the whole business, its results are likely to be too general and not useful for practical application. Focusing the SWOT analysis on the position of the company in the context of a specific market/segment will give much more useful results for practical application.
2. Be correct when assigning one or another factor to strengths/weaknesses or opportunities/threats. Strengths and weaknesses are internal features of the company. Opportunities and threats describe the situation on the market and are not subject to the direct influence of management.
3. SWOT analysis should show the real position and prospects of the company in the market, and not their internal perception, therefore, strengths and weaknesses can be considered as such only if they (or their result) are perceived in this way by external buyers and partners. They must correspond to objectively existing differences between the company's products and competitors. It is necessary to rank strengths and weaknesses in accordance with their importance (weight) for buyers and only the most important ones should be included in the SWOT analysis.
4. The quality of a SWOT analysis directly depends on objectivity and the use of diverse information. It is impossible to entrust its implementation to one person, because the information will be distorted by his subjective perception. When conducting a SWOT analysis, the points of view of all functional divisions of the company should be taken into account. In addition, all identified factors must be confirmed by objective facts and research results.
5. Long and ambiguous wording should be avoided. How more specific wording, the clearer will be the impact of this factor on the company's business now and in the future, the more practical the results of the SWOT analysis will be.

SWOT Analysis Limitations

SWOT-analysis is only a tool for structuring the available information, it does not give clear and clearly formulated recommendations, specific answers. It only helps to visualize the main factors, as well as to evaluate, as a first approximation, the mathematical expectation of certain events. Formulating recommendations based on this information is the job of an analyst.

The simplicity of the SWOT analysis is deceptive; its results are highly dependent on the completeness and quality of the source information. SWOT analysis requires either experts with a very deep understanding of the current state and trends of the market, or a very large amount of work in collecting and analyzing primary information to achieve this understanding. Errors made in the formation of the table (inclusion of unnecessary factors or loss of important ones, incorrect assessment of weight coefficients and mutual influence) cannot be identified in the process of further analysis (except for very obvious ones) - they will lead to incorrect conclusions and erroneous strategic decisions. In addition, the interpretation of the resulting model, and therefore the quality of the conclusions and recommendations, is highly dependent on the qualifications of the experts conducting the SWOT analysis.

History of SWOT Analysis

A pioneer in the direction of strategic analysis aimed at finding a balance between the resources and capabilities of the firm with factors and conditions external environment, Kenneth Andrews is considered (. He developed a model that became the prototype of the SWOT analysis. This model is based on four questions:

1. What can we do (strengths and weaknesses)?
2. What would we like to do (corporate and personal values)?
3. What could we do (opportunities and threats of external environmental conditions)?
4. What do others expect of us (intermediary expectations)?

The answers to these four questions served as the starting point for the formation of the strategy.

SWOT analysis in its modern form appeared thanks to the work of a group of scientists from Stanford Research Institute(Stanford Research Institute - SRI): R. Stewart (study leader), Marion Dosher, Otis Benepe and Albert Humphrey (Robert Stewart, Marion Dosher, Dr Otis Benepe, Birger Lie, Albert Humphrey). Exploring the organization of strategic planning in companies from the Fortune's 500 list (the study was conducted from 1960 to 1969), they eventually came to a system that they called SOFT: Satisfactory, Opportunity, Fault, Threat. Later, the model was modified and renamed to the above SWOT.

1. Product (What do we sell?)
2. Processes (how do we sell?)
3. Buyers (to whom do we sell?)
4. Distribution (how does it reach customers?)
5. Finance (what are the prices, costs and investments?)
6. Administration (how do we manage it all?)

Based on the factors identified during the analysis, strategic decisions were further made.

An excerpt from the book by ID Peter "A Practical Guide to Market Segmentation"

A3.1. Introduction

Any segmentation begins with a comprehensive study of the market situation in which the company operates, and an assessment of the types of opportunities and threats that it may face. The starting point for such an overview is the SWOT analysis, one of the most common types of analysis in marketing. Simply put, SWOT analysis allows you to identify and structure the strengths and weaknesses of the company, as well as potential opportunities and threats. This is achieved by the fact that managers must compare the internal strengths and weaknesses of their company with the opportunities that the market gives them. Based on the quality of compliance, a conclusion is made about the direction in which the organization should develop its business and, ultimately, the distribution of resources by segments is determined.

This chapter will look at the strengths, weaknesses, opportunities and threats in relation to the segments or markets being studied. Determining the relative importance of each of the listed SWOT components requires an extensive range of inputs. After studying this chapter, you will build a SWOT analysis for each of your segments.

Objects within each element (for example, strengths) will be ranked in order of importance: the most important strength will come first, then the second, and so on.

A3.2. Rules for conducting a SWOT analysis

The simplest form of presenting the results of a SWOT analysis is shown in fig. A3.1: list strengths, weaknesses, opportunities and threats. Due to its conceptual simplicity, SWOT has become easily applicable to managers and just as susceptible to misapplication. It does not require extensive databases or formal training. Anyone with even a little knowledge of the company and an understanding of the market can put together a simple SWOT. On the other hand, the inherent simplicity of analysis can lead to hasty and meaningless conclusions, full of such vague and ambiguous concepts as "product performance", " modern equipment”, “prices”. In addition, users sometimes forget about objectivity and rely on outdated or unreliable information.

Rice. A3.1. SWOT analysis

To avoid these mistakes and get the most out of your SWOT analysis, follow these simple rules.

Rule 1 Carefully define the scope of each SWOT analysis. Companies often spend general analysis covering their entire business. Most likely, it will be too general and useless for managers who are interested in opportunities in specific markets or segments. Focusing the SWOT analysis on, for example, a specific segment ensures that the strengths, weaknesses, opportunities, and threats that are most important to it are identified.

Rule 2 Understand the differences between SWOT elements: strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal features of the company, therefore, under its control. Opportunities and threats are related to the characteristics of the market environment and are not subject to the influence of the organization.

Rule 3 Strengths and weaknesses can only be considered as such if they are perceived as such by buyers. Only the most relevant strengths and weaknesses should be included in the analysis. Remember that they must be determined in the light of competitors' offerings. A strong side will only be strong when the market sees it as such. For example, the quality of a product will only be a strength if it performs better than competitors' products. And finally, there can be a lot of such strengths and weaknesses, so you won’t understand which of them are the main ones. To avoid this, strengths and weaknesses should be ranked according to their importance in the eyes of buyers.

Rule 4 Be objective and use versatile input information. Of course, it is not always possible to conduct an analysis based on the results of extensive marketing research, but, on the other hand, one cannot entrust it to one person, since it will not be as accurate and deep as an analysis carried out in the form of a group discussion and exchange of ideas. It is important to understand that a SWOT analysis is not just a listing of managers' suspicions. It should be based as much as possible on objective facts and research data.

Rule 5 Avoid long and ambiguous statements. Too often, SWOT analysis is weakened precisely because it includes such statements, which most likely mean nothing to most buyers. The more precise the formulations, the more useful the analysis will be. This is confirmed by Fig. A3.2. To note buyers will perceive as an ill-defined, meaningless statement. This element needs to be broken down into several components that are more significant from the point of view of the buyer: modern equipment ...

In a similar way, one can analyze other statements from Fig. A3.2. Some of the components received will be relevant to buyers, some will not. The bottom line is that you need to include only those that are perceived by the market and buyers as important.

Rice. A3.2. An example of a bad SWOT analysis

A3.3. Elements of the internal environment: strengths and weaknesses

Under strong and weaknesses can hide a wide variety of aspects of the company. The categories most frequently included in the analysis are listed below. Each SWOT is unique and may include one or two of them, or even all at once. Each element, depending on the perception of buyers, can be either a strength or a weakness.

• Marketing.
  Product
  Pricing
  Promotion
  Marketing Information/Intelligence
  Service/staff
  Distribution/Distributors
  Trademarks and positioning
• Engineering and development of new products. The closer the connection between marketing and technical department becomes, the more important these elements will be. For example, a strong relationship between the new product development team and the marketing department allows direct use feedback from buyers in the design of new products.
• Operational activity.
  Manufacturing/engineering
  Sales and marketing
  Processing orders/transactions
• Staff.
  Research and development
  Distributors
  Marketing
  Sales
  After-sales service/service
  Service/customer service

This includes skills, wages and bonuses, training and development, motivation, working conditions of people, staff turnover. All of these elements are central to the successful implementation of a customer-focused marketing philosophy and marketing strategy.

• Management. Sensitive and often controversial, but sometimes requiring changes, management structures directly determine the success of the implementation of a marketing strategy. Such aspects should be reflected in the analysis.
• Company resources. Resources determine the availability of people and finance, and thus affect the company's ability to capitalize on specific opportunities.

A3.4. Elements of the external environment: opportunities and threats

Opportunities and threats are outside the organization's control. Thus, they can be considered as external, related to the elements of the market environment. The environmental analysis, which should already be done by now (see analysis 2), can serve as an excellent starting point for this part of the SWOT analysis. Key elements to consider include:

• legislative/regulatory/political forces. The actions of the authorities in the form of policy enforcement, as well as legislative and regulatory requirements that companies must comply with;
• social forces (culture). A company is directly affected when dissatisfied customers put pressure on organizations whose activities are perceived as unacceptable;
• technological forces. Technological abilities that help a company achieve its goals affect the products that are offered to customers and their response;
• economic situation. The influence of the general state of the economy, under the influence of which consumer demand and spending habits are formed;
• competition. The nature and extent of the competitive threat. The following points deserve special attention:

Intensity of competition
The threat of new competitors
Buyer needs in the market
Bargaining power of buyers, distributors, suppliers
Competitiveness
Pressure from substitute products

A3.5. Data logging for SWOT analysis

For each of the markets or segments considered, list the most important (most relevant/affecting the business) elements across all four categories: Strengths, Weaknesses, Opportunities, and Threats (see Table A3.1). In each of them, the wording should be ordered by importance: first comes threat number one, and so on. SWOT should be as focused as possible: for example, if necessary, build a separate table for each new market or group of buyers. It makes no sense to list everything possible and impossible: limit yourself to only those elements that have the greatest impact on your company. Be objective. Can you back up your claims with evidence (quotes, letters, industry statistics, press reports, government publications, dealer reports, customer comments)? Remember that the analysis should be focused on the customer, not inside the organization. As you review your next application, it is helpful to ask yourself the following questions.

• Are we sure that this is actually the case?
• How sure are we?
• How do we know?
• Is it possible that this will change soon?
• Does this statement have any relevance/meaning/meaning to our customers?
• Have we considered this position in relation to competitors?

In practice, a SWOT analysis is often compiled for each leading competitor and for individual markets. This reveals the company's relative strengths and weaknesses, its ability to deal with threats and seize opportunities. This exercise is useful in determining the attractiveness of existing opportunities and evaluating the firm's ability to pursue them.

Table A3.1 SWOT analysis

What should be done:

• Rank statements in order of opportunity.
• Include only major statements/aspects.
• Have evidence to support them.
• Strengths and weaknesses must be considered in relation to competitors.
• Strengths and weaknesses are internal aspects.
• Opportunities and threats are external aspects of the market environment.

What are the main conclusions that can be drawn from this?

A3.6. Summary

In this chapter, we looked at conducting a SWOT analysis for each market or segment under consideration. This approach is simple, yet it allows the company to examine the opportunities in the market and weigh its ability to pursue them. At the same time, threats that can undermine the position of the firm are also studied. Strengths and weaknesses are considered from the perspective of buyers, which brings real basis under resource allocation decisions and helps the company get the most out of its existing capabilities.

Checklist: Strengths, Weaknesses, Opportunities and Threats
We recommend that you read and complete the following checklist.

1. What you need to know
Before moving on to the next chapter, you should complete a SWOT analysis for each market. To do this, it is necessary to study the internal strengths and weaknesses of the company and identify the opportunities and threats that exist in its external market environment. Items in each of the four categories must be ranked. The result of the analysis should be conclusions for the company. If you serve more than one market, you must complete the appropriate forms for each market.

If you have not yet collected the information you need to do this, we strongly recommend that you return to this chapter as soon as possible, and certainly before you select target segments and draw up positioning strategies.

2. The table must be filled
Record your progress: did you complete the table?

A 3.1: SWOT analysis

Be prepared to return to the table if/when more information becomes available.

3. Collected information
This chapter requires the following types of information. Indicate at what stage of collecting relevant information you are.

primary goal SWOT analysis– study of the strengths and weaknesses of the enterprise. An analysis of potential threats from external factors should be carried out, a search and definition of presumable ways for the development of the company should be carried out. In addition, the analysis helps to establish links between these components. The development of the SWOT analysis belongs to Professor Kenneth Andrews. It was he who took up adding factors from the outside and those inside to the matrix in the analysis and, as a result, obtained a visual classification of the definitions of phenomena, projects or organizations to select the main factors that determine the level of success.

Speaking about the name of the analysis, it should be noted that the abbreviation SWOT can be attributed to the names that are often put forward by American business teachers so that aspiring entrepreneurs can more easily remember the fundamental principles.

The name of the analysis called SWOT consists of several values. In this case, S is Strength, W is Weakness, O is Opportunities, and T is Troubles. It is worth noting that this abbreviation really capaciously and fully reflects the main business characteristics that, in combination with each other, constitute the main task of the SWOT analysis idea. This section of analysis is sometimes given the name situational. This indicator sometimes also acts as an independent part of the analysis plan, which is carried out before the goals and objectives are revealed. Below we will consider what types of SWOT analysis are.

What is the strength and what is the weakness of this or that enterprise? The analysis helps to reveal these data. These characteristics can only be controlled by the authors of the analysis project. Strength and weakness in the analysis tell about the features that exist in this moment. Thanks to SWOT analysis, you can get detailed information about these data.

Speaking about the opportunities and problems identified in the analysis, it should be noted that they are characteristics that can affect the outcome, but the entrepreneur cannot control them.

The factors that are considered in the analysis are very diverse. If desired, in the process of SWOT analysis, they can be divided into the following groups: organizational, financial, technical, personnel, marketing. The author of the analysis plan has the opportunity to independently choose what form of ownership the future enterprise will have ( we are talking about organizational factor), use personal funds and own production assets. Personnel factors in the analysis, therefore, can be considered qualifications, skill levels and the number of shortcomings that the staff has. Marketing analyzes are always important aspects of the work, as they relate to the market, competitors, services, product differences.

In the process of SWOT analysis, one should consider, first of all, the factors that help to realize the idea. For example, entertainment establishments develop most rapidly in those periods when the number of solvent population grows along with the growth of their income, and this should be taken into account in the analysis. Concerning optimal conditions, into which cars can be imported, then in the process of analysis we can say about the factor that justifies the organization of car park networks.

Opportunities and problems in the analysis can be considered certain properties of the environment, conditions where business is supposed to be done. The economic environment is created by the socio-cultural and political situation, tax legislation, which is important for analysis. From these components, doing business becomes easier or, on the contrary, more difficult. When analyzing, it is worth remembering about technological indicators. For example, about the level of development of telecommunications, as well as demographic factors.

An example of using SWOT analysis: a company case

The editors of the magazine " CEO"considered an example of using SWOT analysis in the company" Avenir ". This method allows the CEO to look at the benefits, opportunities, risks and threats, and decide whether or not to introduce a new contract into the company's portfolio.

Goals of the SWOT Analysis

Leaving behind situational analysis, you can proceed to the designation of tasks and goals. The goal of a SWOT analysis is the level of development you would like to reach in the process of implementing the plan. The beginning of the path to the goal is indicated in the analysis by the awareness of the state of affairs today. Planning helps to start a direction and outline its path - also a kind of analysis. It leads to the implementation of plans.

The goal in the analysis should be achievable, specific and defined so that efforts are concentrated on the main thing. Secondary qualities in the analysis are not so important. However, the scope of the analysis should cover a sufficient area to provide room for development. In addition, the analysis should indicate those special properties that your business has, unlike others.

4 combinations of SWOT analysis factors

1. A development strategy is considered a combination in a SWOT analysis, where there are strengths and opportunities.
2. A strategic development constraint is a combination of threats and weaknesses.
3. Internal transformations must also have a strategy in the analysis. It may have strengths and weaknesses.
4. Potential benefits and their strategy when analyzed are strengths and threats combined together.

What are the types of SWOT analysis

Express SWOT analysis is the most common option that helps in identifying the strengths of the enterprise. It is these parties, identified in the analysis, that are capable of resisting threats in the future, as well as using opportunities from outside. SWOT analysis helps to identify weaknesses. Advantage of SWOT Analysis of this type ease of use and clarity of indicators.

Consolidated SWOT-analysis, where there is a place for the main indicators that determine the performance of the organization today and provide information about the development prospects. The advantage of this type of SWOT analysis is that it can be used to obtain information on the quantitative assessment of factors identified using other methods present in strategic analysis. Another advantage of the SWOT analysis is that it is possible to develop a strategy and other activities focused on achieving strategic goals. Strategic management involves a view from above, when the whole picture is more important than individual numbers. A tool - a strategic map of the company - allows you to build a complete picture.

The tool was developed within the framework of the theory of a balanced scorecard, you can learn how to draw up such a map and use it after passing through the School of the General Director.

A mixed SWOT analysis is a combination of summary and express analyzes. At least three main types of analysis are common in order to combine factors in tables and form a cross matrix. Quantitative assessment of factors, as a rule, does not occur in SWOT analysis. The advantage of a mixed SWOT analysis is that it allows you to analyze the data in depth and get an accurate result.

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What is SWOT analysis used for?

SWOT analysis is used to carry out strategic planning for the development of the capabilities of an enterprise or part of it. However, the use of SWOT analysis is often criticized, which is quite fair. The SWOT matrix contains a visual reflection of the factors that make it possible to form the strategies of firms, since a prerequisite for developing strategies is to take into account the strengths and weaknesses of the company.

When conducting a SWOT analysis, one should focus on maximizing opportunities, attracting the necessary resources for development, which should be accompanied by the development of a plan to reduce threats. At the same time, according to the SWOT matrix, it is impossible to reveal information about the four groups of analysis factors, but it allows them to be clearly demonstrated. By identifying strengths and weaknesses, opportunities and threats, other management tools should also be involved in the analysis process.

SWOT analysis is applicable for:

1. Analysis of competitive environment factors. At the moment, if we take into account the framework of technologies for strategic planning, SWOT analysis is considered as a separate stage in the evaluation and development of an information structure that was assembled based on the classic PEST models, Porter.
2. Planning the implementation of strategies. In order to implement strategies developed taking into account SWOT models, balanced scorecard matrices are used in the analysis. Thanks to this tool, it is possible to identify which areas and performers in strategic development are key.
3. Competitive Intelligence. For competitive intelligence, SWOT analysis is very useful. In more than 50% of cases, SWOT analysis helps to fully explore intelligence information about competing individuals and firms.

Pros and cons of SWOT analysis

The benefits of a SWOT analysis include:

1. The ability to identify and structure strengths and weaknesses, potential opportunities and threats (for this, first of all, a SWOT analysis is needed).
2. Efficient use and ease of implementation (SWOT analysis itself is quite simple).
3. Identification of links in the analysis between the company's capabilities and real problems (a competent SWOT analysis allows you to get this information).
4. Establishing links in the analysis process between the strong and weak sides of the company (this is perhaps one of the main tasks of the SWOT analysis).
5. No need for extensive data for calculations (SWOT analysis requires aggregated data).
6. Determining the prospects for further activities and development of the company using analysis (when real indicators are entered into the SWOT tables, it becomes possible to learn about the future prospects of the enterprise).
7. Calculation in the SWOT analysis of potential options for the effective operation of the enterprise (a competent analysis allows you to get a clear picture of reality).
8. The ability of SWOT analysis to evaluate profitability indicators, to analyze in comparison with competitive information.
9. The ability of management to expand and strengthen the competitive advantages of the company (with the correct application of the analysis and the correct data entered into the SWOT tables).
10. Creation of conditions for assessing the internal potential and resources of the enterprise (many companies use SWOT analysis today).
11. Revealing possible problems, their timely prevention (identifying threats during a SWOT analysis is a useful procedure for any enterprise).
12. The ability of a SWOT analysis to provide a clear vision of the market situation (the analysis provides an opportunity to really assess the picture).
13. The ability to prevent hazards in the analysis, choose the best option.
14. The ability to create a logical and consistent scheme during the analysis, where it is realistic to formulate data on the interaction of strengths and weaknesses, opportunities and threats for the company (SWOT analysis is intended, among other things, for these purposes).

SWOT analysis also has disadvantages:

1. Lack of temporal dynamics in the SWOT analysis. Since the market situation is rapidly changing, the company's reaction to the emergence of new factors should be swift, as the analysis should warn about. SWOT analysis does not always take into account time factors.
2. The absence of quantitative and evaluative indicators in the analysis, as a result of which the SWOT analysis, despite its simplicity, carries little information. We can say that SWOT analysis is not very informative.
3. The presence of subjective indicators in the SWOT analysis itself.

To do or not to do a SWOT analysis?

Do a SWOT analysis if you need a quick and accumulated statement of facts, the creation of a statistical picture, an initial catalog of questions in order to further consider this data when analyzing it. SWOT analysis for proper conduct gives information about the initial, rough checklist. Analysis is also used for sketching in a notebook during meetings with partners and similar cases. Representatives of business education could deal with SWOT analysis, since most of them are not given FAQ about the main objectives of the industry.

Don't do a SWOT analysis, if you need information about the dynamic changes in the world obtained through analysis. To do this, the SWOT analysis is represented by a primitive matrix. With the help of it, it is really possible to get a static and fragmentary picture - the analysis is intended for this. You can compare SWOT analysis to a picture from the rearview mirror of a car, which often turns out to be wrong.

It should be noted that with a thorough audit (scientific, technical, marketing, organizational, financial), SWOT analysis with its data can significantly lose to other types of analysis. Often, he sins with rough estimates that do not correspond to reality.

An example of a complete SWOT analysis can be downloaded at the end of the article.

How to write a SWOT analysis: step by step instructions

Step 1. Preparing for a SWOT Analysis

To start an effective SWOT analysis, you need to analyze the market, paying attention to Special attention product characteristics and consumer research. The second component of the analysis is conducting a competitive analysis and identifying the main competitors. Strengths and weaknesses in an organization in a SWOT analysis are best identified through comparisons with competing organizations. At the same time, the strengths of the company can be absolutely everything in which the company is superior to competing enterprises, and this can be reflected in the analysis. As for the weaknesses indicated in the SWOT analysis, these are the nuances where competitors are in a more advantageous position.

To identify strengths and weaknesses in a SWOT analysis, you must:

• write out information about internal factors that potentially affect the level of competitiveness of goods manufactured by the company (reflecting it later in the SWOT analysis);
• determine in the process of analysis which factors act as the main ones, and enter the data in the table;
• assess what is your superiority over competitors, and what you lose to them;
• fill in the SWOT-table, indicating the strengths and weaknesses in the analysis process.

It is worth saying a few words about the determining factors that are important for SWOT analysis. It is noted here:

1. Product properties (when conducting a SWOT analysis, they indicate which product characteristics are key for consumers and what needs they can satisfy).
2. The degree of recognition of the product. Awareness of a product or service among the population plays an essential role in the sales process. The more people know about a brand, the higher the level of trust in it. This is important information for SWOT analysis.
3. Consumer loyalty.
4. Brand Perception Metrics. The population may develop certain associations with products, a certain image. Associations are both positive and negative.
5. Consumer properties. In a SWOT analysis, it is important to consider how the consumer evaluates the quality of the product. It's not uncommon to find "super-quality" features that are among the best on the market, but buyers can't rate them the way they want to. These data must be taken into account in the analysis.
6. Design and packaging can also be product strengths reflected in the SWOT analysis.
7. Product price.
8. Range breadth.
9. Availability of technologies and patents.
10. Personnel, intellectual capital.
11. Product location.
12. Distribution - degree and breadth. A company may have a strength in the form of unique access to a particular distribution channel or leadership in multiple distribution channels. The weak side is the presence of failures in the coverage of distribution channels. All this should be reflected in the analysis.
13. Positioning of products on the shelves. Some product categories need proper layout to attract the attention of buyers.
14. Cost benefits.
15. Opportunities to invest.
16. The presence of advertising and effective methods on promotion. What new approaches and directions of development you need to think about in the near future, read the article Trends of 2018: new markets, new ideas, due to which you can grow in the new year.
17. Rapid response to changing market conditions. New technologies, developing rapidly, have increased the rate of change in the market. If a company can quickly adapt to a new environment, we can say that this is its strength.
18. Technologies used by the company. It directly depends on how productive and effective the actions taken by the company will be.

Thanks to the audit of the activities carried out at the moment, it is possible to influence the solution of emerging problems. It should be borne in mind that SWOT analysis information should contain information about both current and predicted trends. This is - necessary condition for an objective analysis and a clear understanding of the organization of tasks, namely: by whom, at what time and in what period they should be implemented. The number of employees participating in this process, their activities depend on what strategic tasks the company sets for itself.

Step 2. Identify Threats and Opportunities for Business Growth

It is necessary to conduct a SWOT analysis that affects the external factors of the environment, and at the same time evaluate how each factor affects the degree of sales of the company.

The factors of the external environment in the analysis are the possibilities of the organization (O = Opportunities). Due to them, the company can increase sales and increase profits.

The role of environmental factors in the SWOT analysis is the company's threats (T = Threats), which can subsequently reduce sales and reduce income.

To evaluate a company's capabilities, one should focus on a number of analysis factors. This is:

1. Opportunities to expand the firm's sphere of influence (in a SWOT analysis, one can consider the possibility of distributing products in new countries, in new sales markets, in new segments, to determine whether new categories of products or services can be covered).
2. New buyers in a market segment where products/services are already being sold (may be worth thinking about gaining the attention of new target groups).
3. Opportunities aimed at increasing the frequency of use of a product or service by customers who are currently active, as well as increasing the monetary value of the purchase.
4. Expansion of the assortment range, predetermination of the needs of the buyer and their satisfaction.
5. The development of new technologies and the introduction of one or more programs that reduce the costs incurred by the firm.
6. Expectation of weaker government regulation of the industry, the possible introduction of tax incentives and other solutions that can simplify the activities of the firm.
7. Improved economic environment, stability, growth in consumer purchasing power.
8. Creation of more optimal conditions for firms, elimination of serious competitors from the market environment.

When assessing potential threats to a firm in a SWOT analysis, one should focus on factors such as:

1. Changes in lifestyle, consumer desires, which often leads to the fact that groups refuse to offer products (this is important for conducting a SWOT analysis).
2. Deterioration competitive environment the emergence of new competitors.
3. Beginning of tougher regulation by the state, new legal regulations that increase the costs of the company's activities in the industry.
4. Recession in the economy as a whole, reduction in the audience of consumers; increasing sensitivity to the cost of goods, analyzing the likelihood that consumers will refuse goods if they are not priority items.
5. An increase in the cost of production and activities for the sale of products, which is higher than the growth in value.

Practitioner tells

Anton Antich, Senior COO of VeeamSoftware, St. Petersburg

SWOT analysis can be used in the process of studying products manufactured by competitors. SWOT analysis makes it possible to identify strengths and weaknesses based on the main parameters:

• level of functionality;
• product satisfaction;
• distribution channels;
• price;
• degree of customer support.

We will tell you below how to do a SWOT analysis of a competitor.

Step 3. SWOT analysis table

The SWOT analysis table allows you to structure all the information collected. It has four squares that list strengths, weaknesses, potential threats, and opportunities in a clear sequence. Depending on the level of importance, the identified factors are entered into the cells of the SWOT analysis table.

An example of a SWOT analysis of a competitor company

Step 4. Preparing conclusions

In order to draw conclusions from a SWOT analysis, one should consider the actions that are needed to prepare them. Required:

1. Identify, develop, understand what the main competitive advantage is, based on the strengths of the product when conducting a SWOT analysis.
2. Write in the analysis information about the ways in which it is possible, based on the strengths of the products, to develop the capabilities of the enterprise. Also reflected in the SWOT analysis.
3. Describe in a SWOT analysis a way in which weaknesses can be turned into strengths, as well as threats can be converted into opportunities for business process development.
4. If such transformations cannot be carried out, the SWOT analysis should describe ways to help circumvent threats and weaknesses, minimizing undesirable consequences for the company.
5. Tell in a SWOT analysis about turning the identified benefits into obvious ones for the buyer.
6. Describe in a SWOT analysis how to make threats less neutral in a minimum amount of time, and how to take full advantage of opportunities.
7. Describe in the SWOT analysis ways to hide the weaknesses of the product from the buyer.

You can draw conclusions from SWOT analysis based on two methods.

Quick method in 30 minutes. After the SWOT table with strengths and weaknesses has been completed, you can proceed to the formulation of conclusions on the completed SWOT analysis. You should get rid of unnecessary and non-priority areas in each of the table fields and focus on the goals that are really important at the moment. Based on the finished SWOT analysis table, a number of conclusions can be drawn.

In a SWOT analysis, you need to evaluate:

1. Which aspects of the product are strong, what are competitive advantages goods, how they can be developed and strengthened.
2. What strengths, in your opinion, the sides of your company are not obvious to the consumer.
3. What strengths need effective communication.
4. How to realize the potential opportunities of your company in the shortest possible period of time.
5. How to implement the strengths of the product to develop opportunities.
6. How to make the impact of the weaknesses of the product on its implementation minimal.
7. How to neutralize the threats that exist at the moment.
8. How to hide the weaknesses of the product, which cannot be eliminated.
9. How to turn threats to a business process into opportunities for its development and increase in profits.
10. What protective actions can be taken as soon as possible.

In addition, a SWOT analysis should develop an action plan to eliminate the weak links in the company and turn them into strong ones.

Method "SWOT-matrix". In SWOT analysis, such a matrix is ​​the last stage. When analyzing, you can find the right strategies for the growth and development of the company, as well as get reliable data. The SWOT analysis matrix consists of four squares. All these squares in the analysis have tactical actions aimed at improving the competitive qualities of the product, reducing threats from the outside, ensuring the effectiveness of the use of existing methods to increase sales.

S-O actions. When talking about growth strategies in the analysis process, it can be noted that these are activities or programs that involve the use of key product strengths in order to capture every opportunity. To determine these actions, the parties and opportunities reflected in the SWOT analysis table can be considered. Looking at each opportunity in the SWOT analysis, you should have a logical question regarding effective use strengths of products in the process of working with certain capabilities.

W-O action. The analysis is about protection strategies. These are programs or activities that help change or improve, overcome weaknesses in order to take full advantage of identified opportunities. To determine these actions, the weaknesses and opportunities described in the developed SWOT analysis table should be considered. Looking at each described opportunity in a SWOT analysis, what weaknesses need special attention to overcome, ensure coverage, maximize opportunities? How should one act to deal with weaknesses?

S-T action. Speaking about defense strategies in the analysis, it is worth noting that the possibility of threats is quite possible to avoid if you use the strengths of the company. To identify threats in a SWOT analysis, both strengths and threats need to be considered. As you review each threat as you analyze it, ask a question regarding the selection of strengths that can protect the product or minimize risks when threats occur.

W-T action. Protection strategies, or activities that help improve and overcome weaknesses in a product in order to prevent or minimize the risks of threats. Weaknesses and threats should be analyzed to determine these actions. Looking through each threat described in the SWOT analysis, one must ask the question: which of the weaknesses contributes to the growth of the risks of certain threats? What should be done to strengthen the weak side in order to minimize the risks of threats?

To get the most detailed and reliable results, you need to use two methods of SWOT analysis at once.

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Step 5. Make a presentation of the results

Presentation plan:

1. summary. The first section contains the key proposals, the conclusions of the SWOT analysis, presented in a short form.
2. Introduction. Explain what tasks and goals the SWOT-analysis pursues, tell us about the analyzed, reviewed internal and external factors.
3. Remember the basic form of SWOT analysis - a simple matrix that contains four squares containing information about weaknesses, strengths, opportunities and threats. The location of factors in a SWOT analysis should ideally be in order of increasing importance of their priorities. Doesn't need to be specified a large number of factors. 6-8 will be enough key values in each of the categories of the SWOT analysis.
4. Analysis data. Prepare visual images that illustrate the evidence for each factor you have analyzed. This will make it easier to justify the selected factors and priorities in the SWOT analysis.
5. Findings in the analysis.
6. Action plan. When conducting a SWOT analysis, you should suggest options for how to proceed.

Examples of SWOT Analysis

Wall Mart

When conducting a SWOT analysis, it is possible to talk about the strengths of the brand.

1. The brand is known in the modern market, enjoys the loyalty and trust of customers (an important indicator for analysis).
2. A brand can sell its product at an acceptable cost, which retains old customers, increases loyalty and attracts new consumers.
3. Offers a wide range of products grouped into categories. The trade line includes all the major brands on the market. The buyer always has the opportunity to find the product that he needs.
4. Stores are conveniently located and well thought out. The territories in which they are located are very passable, which ensures a stable influx of buyers.

At the same time, the brand also has weaknesses, which should also be reflected in the SWOT analysis, namely:

1. Due to the small geographical expansion commercial network in the international concept, it does not take first place, but is inferior to a number of retail chains.
2. There are quite a lot of Chinese products in the stores. At the same time, the percentage of defective goods is high, which has a bad effect on the company's reputation and reduces customer loyalty.
3. Problems with employees. The organization has gone through a lot in the last few years. conflict situations that were associated with staff. As a result, it became possible to talk about a reduction in the involvement of workers.

Company capabilities:

1. Opportunity to increase sales and generate income through an online store. This helps to expand work in areas where there are no shops.
2. Possibility of substantiation in new markets where the company does not currently exist.
3. The possibility of replenishing the assortment range, adding brands that are not currently sold by the network.
4. Opportunity to use the shaky economic situation. Organization of an advertising campaign with an emphasis on low cost saves the day.

When conducting a SWOT analysis, the following factors were identified that could become a threat to the company. These included the expansion and rapid growth of a number of large-scale chain stores. In addition, there is a barrier to entering a new market. Despite the fact that trademark is widely known, in some countries there are political, social, legal barriers that complicate international expansion.

Donut LLC

The main activity of the company is the sale of equipment made in Russia, as well as baking bakery products from rye flour. By the way, the last activity is a hobby of the owner of the company. The company was founded by an entrepreneur ten years ago, and the businessman was immediately able to establish good and effective interaction with the largest customers.

Strengths of the company	Opportunities of the company in the external environment
The company has spread and today is quite famous. The company has a good service center. The enterprise timely paid attention to the signing of dealer agreements with successfully operating factories. The sales department has a market structure. Some time ago, the HR manager managed to find a competent Sales Director. Within six months, the specialist was able to increase sales by 60 percent. The company has its own platform where specialists can work productively. The company has set up a marketing department. It is headed by a professional. The effectiveness of the marketing information system is observed. The firm organized a department for prospective development. It is led by a qualified specialist who participated in the development of seven new business projects	Improve the quality of service and reduce the time for customer service. Focus on narrow specialization. Develop cooperation with corporate clients and look for new industries of buyers. Integrate with manufacturers. Integrate tightly with factory enterprises and receive significant discounts. Increase production profitability and control costs. Create new business, the main direction of which is the rental of equipment. Implement CRM.
Weaknesses of the company	Threats of the external environment for business
The quality of the products is "lame" and does not even reach the average. The working capital required for the purchase is always in short supply; the competence of the financial director is not enough