What Is SWOT Scanning And Its Importance To The Company?
A SWOT analysis is a strategic tool that allows business leaders and managers to ensure the feasibility of a project and identify possible points to work on. Whether it is to develop a new product or service, or to tackle a new market, SWOT analysis makes it possible to draw up a roadmap. Why choose a SWOT analysis? How to proceed? Here’s everything you need to know.
What Is A SWOT Analysis?
SWOT analysis is a powerful strategic tool that offers the possibility for different managers to evaluate the success of a project and develop the right marketing strategy. To do this, several parameters are studied. Among them, there are assets, defects, competitors or markets.
To perform this analysis, it is important to use a matrix, which is called a SWOT matrix. This takes the form of a table with several entries that allows to have a global vision of the study. At the same time, each parameter is studied in depth.
The goal of SWOT analysis is to identify all the positives and negatives of a company. Assets, in other words strengths and opportunities, need to be strengthened. Weaknesses and threats must be identified and solutions must be found.
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Why Do A SWOT Analysis?
Doing a SWOT analysis is an approach that is necessary when a company or a professional embarks on a new project. The strategic tool makes it possible to set up a roadmap. As a reminder, a roadmap is a list of steps that makes up a strategy or action plan.
Performing a SWOT analysis can be done in different situations. Here is a non-exhaustive list.
- Start a business
- Launch a new product
- Launch a new service
- Propose a new graphic charter
- Targeting a new market
- Targeting an international market
- Launch an online store
- Open a new point of sale
In all these situations, it is necessary to ensure the feasibility of the project by studying the strengths, weaknesses, opportunities and threats. In other words, you have to do a SWOT analysis.
How Do I Perform A SWOT Analysis?
Study internal resources
To perform a SWOT analysis, as much data as possible must be collected. As a first step, it is necessary to focus on internal data. Easy to collect, they make it possible to take stock of the company’s resources. These can be financial, human, material and immaterial.
It is at this point in the study that we look at production capacity, manpower, the necessary budget or any patents or authorizations to be provided. Finally, it is interesting to take stock of consumer satisfaction and expectations. In swot analysis, internal resources are represented by strengths (strengths) and weaknesses (weaknesses).
Study external data
After the internal analysis, it is necessary to study the external data. To achieve this, we must look at opportunities and threats. These elements will have a direct impact on the feasibility of a project but also and above all on success.
External data include the study of the competition which makes it possible to take stock of the products and services offered by other companies as well as on the tariffs. Comparing yourself to competitors allows you to better position yourself.
During this key stage, it is also possible to take an interest in communication campaigns, the workforce or the equipment present on the sites. The study of competition is supplemented by an environmental analysis. For example, a company that wants to market bicycles will have to look at bike path networks.
Strengths, Weaknesses, Opportunities, Threats: Asking The Right Questions
For each of the parameters of a SWOT analysis, you have to ask yourself the right questions and try to answer them. The approach makes it possible to identify the strengths and areas of work that will maximize the success of the project.
- What are the company’s specialties?
- What is his expertise?
- Is the new project compatible?
- Is it innovative?
- Does it add value?
- Does it allow the company to evolve?
- Is it compatible with the quality and/or environmental approach in place?
- Isn’t the project too close to the current services?
- Can the possible lack of expertise be corrected?
- Is the project compatible with production capacities?
- Should we invest or train?
- Will the project make it possible to evolve the company?
- What are the benefits of the project for turnover and employees?
- Is the project different? Is it an exclusive?
- Is it compatible with the environment?
- What are the risks of the project?
- What does the competition do?
- Does the project depend on an authorization?
Who Does The SWOT Analysis?
To perform SWOT analysis, two solutions are available to companies and professionals. The latter can call on an external service provider who will study the project and carry out the study of strengths and weaknesses, opportunities and threats.
Delegating SWOT analysis is beneficial because companies can have a wrong view of their data. It is also possible to do the analysis internally. Several employees then participate in this study according to their expertise. Less expensive, this approach allows you to start working on the project. Of course, it is possible to use an external service provider and work with them to have a more complete SWOT analysis.
The Importance Of SWOT Analysis
Performing a SWOT analysis is a very important step that significantly reduces the failure rate when launching a new project. Thanks to it, weaknesses are corrected and threats are understood and circumvented.
SWOT analysis is different from market research. The latter makes it possible to ensure that a project is economically viable in order to find financing. Market research also helps determine how to sell and to whom. It can be part of the SWOT analysis which is a more complete and comprehensive study.
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