SWOT analysis is a tool which enables groups or individuals gain a better understanding on the current situation in terms of its strengths, weaknesses, opportunities or threats. Although the most common application of the tool is looking at organisations, it can be used also to look at products, projects, teams, events, … virtually anything.
This simple tool can be a very powerful mechanism for bringing issues out so that they can be addressed. Our preferred approach is to split a large area (flipchart paper or virtual whiteboard) into four (labelling each quadrant as S, W, O or T as per the symbol on the panel) and then getting groups of people to look at the business from different perspectives (for instance market, technology, people, etc.) and place up their views using different colour post-it notes for each perspective. Similarities and differences can then be discussed, prioritised and worked upon.
SWOT Analysis is best undertaken at the start of a project in order to develop a clear understanding of the current situation. Another useful tool for this is DeBono’s Six Thinking Hats.These are just two of many good techniques that can help you build a strong competitive position for your group or organisation.
The following questions help people to think through each of the four quadrants in the SWOT Analysis:
Strengths:
- What are your advantages?
- What do you do well?
- What relevant resources do you have?
- What do other people see as your strengths?
Consider this from your own point of view and from the point of view of the people you deal with. Don’t be modest – be realistic. If you are having any difficulty with this, try writing down a list of your characteristics. Some of these will hopefully be strengths! In looking at your strengths, think about them in relation to your competitors – for example, if all your competitors provide high quality products, then a high quality production process is not a strength in the market, it is a necessity.
Weaknesses:
- What could you improve?
- What do you do badly?
- What should you avoid?
Again, consider this from an internal and external basis – do other people seem to perceive weaknesses that you do not see? Are your competitors doing any better than you? It is best to be realistic now, and face any unpleasant truths as soon as possible.
Opportunities:
- Where are the good opportunities facing you?
- What are the interesting trends you are aware of?
Useful opportunities can come from such things as:
- Changes in technology and markets on both a broad and narrow scale
- Changes in government policy related to your field
- Changes in social patterns, population profiles, lifestyle changes, etc.
- Local Events
A useful approach to looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them.
Threats:
- What obstacles do you face?
- What is your competition doing?
- Are the required specifications for your job, products or services changing?
- Is changing technology threatening your position?
- Do you have bad debt or cash-flow problems?
- Could any of your weaknesses seriously threaten your business?
Carrying out this analysis will often be illuminating – both in terms of pointing out what needs to be done, and in putting problems into perspective.
You can also apply SWOT analysis to your competitors – this may produce some interesting insights!
Clicking the instant template below will open up as a live interactive tool in your browser. Simply copy its URL from the address bar on the page that opens and share it through your meeting chat with your team. They will instantly be able to participate with you by: adding their thoughts via sticky notes; seeing all that’s going on, and moving things around. For more on instant templates, click here.
Track your progress to ensure the efficacy of this strategy.