It is generally accepted that business owners of any size have many chances to succeed, and no chance is lost: if even one of them is missed, a competitor will find it. A detailed analysis of his place in the market, surrounded by all positive and negative factors, helps an entrepreneur to build a correct, competent strategy of behavior in a market economy. Swot analysis becomes a universal tool in such work.
Instructions
Step 1
The abbreviation swot is four English words: strengths - strength; weakness - weakness; opportunities - opportunities; threats - threats. These words are placed in the table of contents of four cells (cells) of the swot-analysis table according to the scheme: strengths, opportunities, weaknesses, threats.
Step 2
When conducting a swot analysis, note for yourself: strengths and weaknesses include internal factors, i.e. factors that the management team of the enterprise can influence while remaining within its structure. Opportunities and threats are identified in the area of external factors, i.e. factors, the action and influence of which is directly and completely not subject to direct and operational management and regulation.
Step 3
Be clear about what can be measured as the strengths of your organization? The list is individual. Strengths include, for example:
- availability of sufficient financial resources for development;
- availability of our own technological developments;
- significant practical experience in the chosen field of business;
- low cost of products (services);
- the presence of unique qualities (traits) in products (services) in comparison with competitors;
- high professional level of personnel;
- technical and human resources to improve the organization of production;
- reliable partners;
- competent management, etc.
Assess all your advantages and add them to the table.
Step 4
Objectively make a list of those positions that, in your opinion, can be attributed to the weaknesses of your business. It can be:
- lack of resources (equipment, premises);
- poorly placed management;
- unstable financial position;
- imperfect technology of production of goods (organization of the provision of services);
- lack of experience in the field of creating a client base, production and placement of advertising, sales organization, etc.;
- lack of clear competitive advantages in goods (services), in the sales promotion system;
- lack of a clear marketing policy;
- higher, in comparison with competitors, the cost of products (services);
- deterioration in health (in the case of a sole form of doing business), etc.
Step 5
Evaluate all the "positive" in the prospects for the development of the company (own business) in clear formulations of the concept of "opportunity". The options are:
- the emergence of an additional group of consumers;
- an increase in the demand for products (services) due to an increase in purchasing power;
- the possibility of improving the qualifications of personnel;
- strengthening support for entrepreneurship in the region by local government bodies;
- favorable demographic changes in the region;
- access to new technologies;
- access to concessional lending;
- the opportunity to take part in competitions, auctions, tenders, etc.
Step 6
Make a list of potential threats to the viability and successful development of the enterprise. The reasons for instability in the future may be:
- the emergence of new strong competitors;
- growth in sales of analogue products;
- slowdown in the rate of market growth;
- instability of the state economy as a whole, economic crisis, inflation;
- strengthening the dictates of suppliers;
- changing the needs, tastes, priorities of the buyer;
- increased tax burden, etc.
Once you have a swot analysis matrix, use it in developing your company's strategy. It should be systematically subordinated to compensating for weaknesses, using opportunities at the expense of strengths, and neutralizing threats.
