SWOT Analysis- How It Will Help Your Business

In our business, it is good to review the process every now and then.  Even if the business is running successfully, such a review will bring a few deadly mistakes to our notice.  It becomes necessary to keep analyzing things in business.  A SWOT analysis is one such analysis which can of immense use to your business.  Read on to learn more:

Strengths: Identity what is the major strength of your business.  List of few factors would be the major reasons for profit.  So, finding them out, improving them and protecting them is very essential.  Strengths may be any of the following:

1.    Good product design

2.    Good product quality

3.    Good price value

4.    Reasonable price

5.    Excellent human resource

6.    Availability of resource at low cost

7.    Good profit margin

8.    Well planned marketing efforts

Weaknesses:  Even in a profit-making business there may be weaknesses.  We, humans, are prone to emotions.  We are not like bots used by crypto code to take the right decision each time.  Our weaknesses eventually turn out to be threats and invite troubles.  Weaknesses of your business could be in the following areas:

1.    Poor monitoring

2.    Poor cost control

3.    Poor safety measures

4.    Poor accounting

5.    Weak leadership

6.    Bad planning

Opportunities:  Find out the favorable external factors which can support the growth of your business.  It can be

1.    Change in fashion/lifestyle

2.    Increase in price of a competitor’s product

3.    The decrease in the quality of similar products

4.    Change in demography

5.    Change in government policies

You should plan in advance to use the opportunities wisely.  These opportunities normally bring a hike in sales without any major hike in cost.  Hence the profitability would be more.

Threats:  Threats can be defined as uncontrollable external factors which affect the profitability and very existence of your business.  The fact that these are beyond your control is the major dangerous aspect of threat.  Find the below list of threats:

1.    Competitors who are existing and potential- Their plans

2.    Government’s unfavorable policy like a tax hike

3.    Technology becoming obsolete

Sometimes you can respond to these threats.  For example, when the competitor offers freebies you can offer a price discount and prevent a decline in sales.  Most of the times you need to keep your antenna alert.  You have to think proactively and avoid these in advance.  For example, constant technological upgradation can help you avoiding obsolete status. 

Use this analysis and find out the above four vital signs.  These will help your business survive longer and brighter.