What is a SWOT Analysis? – Definition, Templates and Examples
In today’s post, you will find out what is a SWOT analysis, its definition, examples, importance and I will also provide you swot analysis templates in Word format so that you can download them to make changes.
The SWOT is an acronym for Strengths (positive critical factors), Opportunities (positives that we can take advantage using our strengths), weaknesses (negative critical factors ) and Threats ( external negatives that could hinder the achievement of our goals).
It can also be found as “Matrix analysis” or “SWOT Matrix.”
SWOT: Strengths, Weaknesses, Opportunities, Threats.
The SWOT Matrix is an analytical tool that can be applied to any situation, person, product, company, etc. from the point of, which is acting as an object of study in a given moment of time.
It in from the point of the particular situation that this study was taken.
The analyzed variables and what they represent in the matrix are particular to that time. After analyzing them, they must make strategic decisions to improve the current situation in the future.
SWOT analysis is a tool that helps build a picture of the current situation of the study object (person, company or organization, etc.) thus enabling accurate decisions consistent with the objectives and formulated policies.
After completing the first analysis it is advised, successive analysis periodically taking as reference in order to know if we are meeting the goals that are outlined in our strategic development.
This is advisable because the external and internal conditions are dynamic and some factors change over time, while others suffer minor modifications.
The frequency of these analyzes update depends on the type of object of study which is concerned and in that context we are analyzing.
In terms of the marketing process, we say that the SWOT matrix is the link that allows us to move from analysis of the internal and external environments of the company towards the formulation and selection of strategies to follow in the market.
The primary objective of SWOT analysis is to draw conclusions about the way the studied object will be able to cope with change and turbulence in the context (opportunities and threats) from its internal strengths and weaknesses.
That is the essential first step for a correct analysis, the next is to determine the strategies to follow.
To start a analysis should make a crucial distinction between the four variables separately and determine which elements correspond to each.
In turn, at every point of time when the analysis is done, it would be advisable not only to build the SWOT matrix for the present but also project different future scenarios with consequent SWOT matrix and propose alternative strategies.
Both are internal strengths and weaknesses of the organization, so it is possible to act directly on them, Instead the opportunities and threats because they are external.
What is a SWOT Analysis?
They are the special abilities available to the company, and allows you to have a privileged position against the competition. Control resources, skills, and abilities that are possessed, and activities that develop positively, etc.
They are those factors that are positive, favorable, exploitable, to be discovered in the environment in which the company operates, and enable competitive advantages.
They are those factors that cause an unfavorable position against the competition, resources are lacking, not possess skills, activities that do not develop positively, etc.
These are the situations that come from the environment and can reach even attempt against the permanence of the organization.
SWOT Analysis Examples
Below different examples of variables that must take into account when analyzing the strengths, weaknesses, opportunities, and threats are listed.
Examples of Strengths
- Good working environment
- Proactive management
- Market knowledge
- Large financial resources
- Good quality of the final product
- Opportunities to access credits
- Art equipment
- Experience of human resources
- Technical and administrative quality processes
- Special features of the product they offer
- Qualities of service that is considered high level
Examples of Weaknesses
- Low salaries
- Old equipment
- Lack of training
- Quality Problems
- Reactive management
- Poor financial situation
- Inability to see errors
- Working capital misused
- Poor management skills
- Little ability to access credit
- Lack of motivation of human resources
- Product or service without differentiating features
- Weak competition
- Favorable regulation
- Underserved market
- Need Product
- No competition
- Favorable market trends
- Strong purchasing power of the target segment
Examples of Threats
- Union conflicts
- Unfavorable regulation
- Changes in legislation
- Very aggressive competition
- Increased price of inputs
- Market segment contracted
- Unfavorable trends in the market
- Competition in the market consolidated
- No competition (do not know how the market will react)
If you find swot analysis example section useful please let me know i will add more on demand.
SWOT analysis is not limited only to develop four lists. The most important part of this analysis is the evaluation of the strengths and weaknesses, opportunities and threats, as well as drawing conclusions about the attractiveness of the situation under study and the need to take a particular action. Only this type of analysis and SWOT comprehensive evaluation, give us solution so that we will be able to answer questions such as:
- It has the internal strengths and core competence company on which to create an attractive strategy?
- The weaknesses of the company make it competitively vulnerable and disqualifying to look for certain opportunities? What weaknesses need to correct the strategy?
- What opportunities can search the company successfully through the skills, capabilities, and resources that account?
- Our current strategy is working or not?
- What strategies should we adopt?
- How strong is the competitive position of the company?
- What are the strategic issues that we are facing right now?
Importance of SWOT analysis
Decision making is a daily process by which a choice is made between different alternatives for the purpose of solving the most varied situations at labor level, familiar, sentimental, business, etc.
To make a successful decision on a particular issue, you need to know, understand and analyze it, in order to give a solution. It is important to remember that “no problem can not be a solution.”
Therefore, before taking any decision, companies should analyze the situation to find out alternatives. The process that companies should use to know the real situation is the Matrix analysis.
The importance of preparing and working with a matrix of SWOT analysis is that this process allows us to search and analyze proactively and systematically, all the variables involved in the business in order to have more and better information when making decisions.
While the ideal way to capture the mission, vision, goals, objectives, and strategies of a company then correctly performing the analysis will help us to, reordering needs to meet business objectives.
Here is a practical form to make a correct and orderly manner analysis.
Once the form completed with the variables corresponding to each factor, the next step is analyzing them and preparing strategies.
The most successful form of presentation of strategy formulation is as follows:
At the time of writing the different strategies should be placed references of the variables analyzed in the corresponding factors (strengths, weaknesses, opportunities, and threats).
Eg: In the form of analysis some weaknesses are:
D1.- staff listless, little committed to the company results
E1.- (for D1) preparing training programs and staff motivation
SWOT analysis of marketing
- Unawareness of its usefulness as a strategic tool.
- Image deteriorated somewhat.
- Lack of good generalists.
- Lack of marketing culture.
- constant appearance of new concepts with identical earnings.
- It has been hidden by advertising.
- Absence of a superior being.
- direct dependence on telecommunications.
- It is thought that requires high budgets.
- The results are not short term.
- Economic crisis.
- Lack of vision and risk of banking.
- The lack of healthy ambition.
- Too much reliance on perception.
- Intrusiveness in the sector.
- Business difficulty adapting quickly to changes.
- Improvisation is deeply rooted in the country.
- Skepticism and distrust of consumers.
- Tarnished image in the media.
- Atomization of the sector.
- The Internet and new technologies.
- Responsive Politics entrepreneurship.
- Generating tangible benefits.
- Great potential and desire in the professional teams.
- Extended to all sectors.
- His power of influence.
- Total acceptance by youth.
- Possibilities of outsourcing in SMEs.
- Loyalty power.
- business discipline very flexible.
- Creates value.
- motivational image.
- Not expensive.
- New markets.
- Globalization of the economy.
- Greater purchasing power.
- Emerging markets.
- Technological advances.
- Support of the media.
- Better preparation and training professionals.
- Changes in the markets.
- That the public authorities have strategic vision.
- Emergence of new distribution channels.
SWOT Analysis Templates
SWOT analysis template is an essential part of strategic planning and strategic analysis. I will provide you 10 free SWOT analysis templates in Word document format so that you can easily use them. You can use them in your organization to find out weaknesses, strengths, threats, and opportunities.
White and Black SWOT Analysis Template
Green Blue Speech Bubble Analysis Template
Prism SWOT Analysis Template
Arrows SWOT Analysis Template
Purple Blue Swot Template
SWOT Analysis Report – Slides
Now you get clear idea of what is SWOT Analysis and We hope that this material has served to address your concerns and meet your needs of information and knowledge on the subject.
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