Business needs to be constantly improved and adapted to changing market conditions. But before making changes, it is necessary to analyze - to identify strengths and weaknesses, threats and opportunities for development.

Many entrepreneurs do not pay enough attention to analyzing their company. They believe that to obtain analytics it is necessary to spend a large number of time, money and effort. However, this is not always the case.

SWOT analysis will help you cope with this task. You will only spend a few hours on it. And, as a result, you will receive data that will allow you to formulate a development strategy for at least the next six months.

From the article you will learn in detail how to check your business for strengths and weaknesses, threats and opportunities for development.

What is SWOT analysis

SWOT analysis is one of the most common and easiest to use types of business analysis. With its help, you can identify internal and external factors that influence the success of the company.

SWOT analysis of a business allows you to evaluate the company’s activities based on four factors:

S - strength ( strengths). Competitive advantages of your enterprise. For example,

• low production costs,
• a close-knit community of brand fans,
• high KPIs for email campaigns.

W - weakness (weaknesses). Internal factors that hinder business growth reduce your competitiveness. For example,

• insufficient number of support staff,
• lack of configured trigger mailings,
• high cost of attracting a client.

O - opportunities. External factors that can positively affect business growth. For example,

• improving the site’s position in organic search results,
• “exit” of a competitor from the market.

T - threats. Negative external factors that may adversely affect the further development of the enterprise. For example,

• reduction in market size,
• entry of a major competitor into the market with many advantages,
• tightening of business conditions on the part of the state regulator.

Who can benefit from a SWOT analysis of a company?

SWOT analysis of an organization is suitable for absolutely all types and sizes of businesses.

With its help, startupers and owners of new businesses will be able to take into account all the risks and draw up a development strategy in such a way as to become competitive even in the first stages after launch and, soon, overtake competitors.

For existing companies, it is important to conduct a SWOT analysis of the enterprise at least once a year, even in cases where things are going well.

The analysis will help determine the company's development strategy in accordance with current market conditions.

Important!

After conducting the analysis, you can transform it into a marketing strategy for the company’s growth for the next period (6 months/1 year). By knowing your strengths, your marketing messages will be more accurate.

At the same time, knowing your weaknesses, you can make every effort to level them out.

Advantages

The popularity of SWOT analysis is due to several factors.

Versatility

Regardless of what market share you own, whether you are in manufacturing or retail, online or offline, this method of analysis is applicable to all businesses. It can also be used to evaluate the effectiveness of specific departments of the company.

Simplicity

A SWOT analysis of a brand can be carried out by the owner or manager of the enterprise. To carry it out, you do not need to resort to complex calculations and conduct extensive research. It is enough just to be aware of the real state of affairs in the company and on the market as a whole.

A complex approach

During the SWOT analysis, both external and internal factors affecting the company's activities are taken into account. Therefore, the results of the analysis will help to understand the real state of affairs, and will not show only one side of the coin.

Flaws

Even though SWOT is a very effective and convenient way of doing analytics, it does have some disadvantages.

Subjectivity

There is no standard set of indicators that need to be taken into account when conducting an analysis. You have to rely on the personal opinion of analysts about the company and its position in the market.

Blurry results

Very often it is impossible to evaluate the factors of analysis in quantitative indicators. Therefore, SWOT analysis helps to form a general idea of ​​the enterprise and its position in the market, but does not allow assessing and comparing the influence of various factors.

How to use analysis

When starting a SWOT analysis, you need to clearly define the main goals of your organization. In order to analyze the advantages, disadvantages, opportunities and risks in application to the implementation of the assigned tasks.
When carrying out the analysis, take into account only significant factors. For example, a delivery price that is 5 UAH lower than that of competitors should not be considered one of the company’s advantages.

5 Rules for Effective SWOT Analysis

1. Conduct research on each market segment, department, product to get more objective results.
2. Don't confuse opportunities with advantages and threats with disadvantages. Advantages and disadvantages are internal factors of the enterprise. You can control them. Opportunities and threats are external factors beyond our control.
3. Identify strengths and weaknesses from the buyer's perspective. To verify your assumptions, conduct interviews or surveys among clients.
4. Use precise, unambiguous language.
5. For each factor of disadvantages and risks, try to find ways to eliminate or minimize them. For advantages and opportunities - ways to strengthen and use. Record all data in the decision matrix.

Preparing for analysis

Before carrying out the analysis, it is necessary to study the market in which the company operates. Special attention worth taking the time to research your target audience, in order to clearly understand the “pain” of a potential client and orient your business to meet the needs of the user, and not just sell him your product. This is a key factor in building long-term relationships with clients.

Identify your main competitors and analyze their companies from the point of view of a potential client. Based on this, you can highlight your strengths and weaknesses.

Step-by-step algorithm for doing SWOT analysis

There is a special technique for conducting SWOT analysis to obtain the highest quality results. It consists of 5 stages.

Step 1: Identify questions for analysis

The following questions need to be answered. They will help you highlight the most important information and get ready for further work.

Examples of questions to identify strengths:

• What is our main competitive advantage?
• How are we superior to our competitors?
• What benefits do our employees have?
• What resources do we have?
• What makes us unique?
• Why do clients use our services?
• What assets do we have?

Questions to identify weaknesses:

• What is the competitive advantage?
• What are our competitors doing better than us?
• What are our clients not happy with?
• What resources are we lacking?
• What are our employees complaining about?
• What are the disadvantages of the product?
• What factors prevent you from making a better product?
• What internal processes can be improved?

Questions to identify enterprise capabilities:

• How can the current political and economic situation support business growth?
• What external resources can be attracted to accelerate development?
• How can current market trends benefit us?
• Are the opportunities permanent or temporary?

Examples of questions to identify threats:

• Which new market participants are potentially dangerous for us?
• How can the political and economic situation worsen our effectiveness?
• What new products and technologies may be more attractive to users than ours?
• Could market trends adversely affect our business?

Step 2. Create a SWOT analysis table

Using a table (matrix) you can structure all the information received. It consists of four parts: strengths, weaknesses, opportunities and threats. All identified factors must be entered into the SWOT matrix in the appropriate blocks, sorted by importance.

Step 3: Finding Strengths and Weaknesses

Identify the main internal factors influencing the company's success. Factors that are better than competitors are strengths, those that are worse are weaknesses.

Sort the data received so that at the top of the list are those factors that affect the final profit to the greatest extent.

Step 4: Find Growth Opportunities

Step 5. Search for business threats

Determine what could reduce your company's income. At the same time, never forget that threats refer to external factors. They are not under your control - you cannot influence them.

Quantitative method of analysis

In practice, a quantitative method is often used. Its essence is that after identifying all the factors, you evaluate them on a point scale. Thanks to this, the results of the analysis will become more clear, as they provide an understanding of how important a particular factor is.

Carrying out a full-fledged quantitative SWOT analysis requires a lot of time. But there is an alternative method, which is almost as accurate as the classical one and requires less time.

SWOT analytics using the example of an online store

Let's consider compiling a SWOT analysis table using the example of an online store of household appliances.

The factors in the table are sorted by level of importance. The following conclusions can be drawn from the most important criteria:

• It is worth continuing to engage in search engine optimization because it is the most effective traffic channel.
• The mobile version of the site is definitely worth updating. This is guaranteed to impact your mobile conversion rate and overall purchases.
• You shouldn’t go offline, because the market is developing steadily.
• If the dollar rate rises, you will have to raise prices in the store.

5 examples of solutions based on SWOT analysis

The main goal after SWOT analysis is to correctly interpret the data obtained. This will help overcome difficulties and ensure further business development. Let's look at 5 examples of problems with potential solutions.

1. Marketing department employees do not complete assigned tasks within the deadlines set by the department head.

Solution: hire a project manager. It will help you correctly set tasks, prioritize them and correctly estimate the time to complete them.

2. Rent for offline stores is growing, while income from them is steadily declining.

Solution: create an online store and start moving sales online.

3. Declining living standards have a negative impact on sales of premium clothing.

Solution: increase the share of products for the middle class.

4. 65% of organic traffic comes from a corporate Youtube channel. If the channel is unexpectedly blocked, most of the traffic will be lost.

Solution: start developing other traffic sources. For example, do search engine optimization or develop a corporate Facebook page.

5. On manufacturing plant When manufacturing polyethylene products, the old extruder often breaks down, and there is no money yet to buy a new one.

Solution: find partners whose equipment you can use to produce products, giving them a portion of the profits.

conclusions

A SWOT analysis of a small business or large enterprise allows you to identify weaknesses and threats, as well as strengths and opportunities for development. Thanks to this, you will be able to organize the company’s activities in such a way as to effectively counter external threats, successfully compete in the market and steadily increase the efficiency of your business.

To ensure the most complete and reliable data in SWOT analytics, conduct analysis not only for the entire company, but also for specific departments and products. At the same time, try to get the opinion of as many knowledgeable people as possible in order to obtain objective data. Thanks to this, you will be able to make the right and effective decisions in developing your business.

Any head of an enterprise should know the strengths and weaknesses of a SWOT analysis, because he must be prepared for unexpected and not always pleasant surprises, and respond quickly and clearly to them. For these purposes, SWOT analysis technology is provided.

Knowing the strengths and weaknesses of SWOT analysis through the practical use of marketing research this kind, an entrepreneur will always be able to find the best solution in any situation.

SWOT analysis, general concept

The concept of “SWOT” is borrowed from the English language and is essentially an abbreviation of English words:

• S – Strengths – talking about the strengths and advantages of the enterprise;
• W – Weaknesses (weaknesses) – shortcomings, weak points;
• О – Opportunities (favorable opportunities) – we mean opportunities from the outside, due to which, if favorable conditions arise, there is a high probability of creating additional advantages in the company’s activities;
• T – Threats – circumstances that have the potential to cause harm to the organization.

By conducting a SWOT analysis of the strengths and weaknesses of an enterprise, it is possible to clearly clarify whether the company (even) uses its internal strengths to the fullest, and also identifies positions that can become strong, those that need to be adjusted, etc.

Why do you need a SWOT analysis?

A standard SWOT study aims to analyze the strengths and weaknesses of an enterprise, assess risk (including) and best opportunities. It is important not only to obtain the information of interest, but also to compare the results of the study with the indicators of the most important competing companies.

The conducted SWOT analysis allows us to answer important questions, namely:

1. Are personal strengths fully utilized by the firm?
2. What distinctive features does the enterprise have in implementing its own strategy?
3. Are there any weak points and how should they be corrected?
4. Which opportunities are most likely to lead to success.
5. What potential threats should a manager take seriously? features of the actions taken in this case.

The most optimal time for SWOT analysis is the period when the direction in accordance with which further business development is planned is being formulated.

What rules should you follow when conducting a SWOT analysis?

When performing a SWOT analysis of the strengths and weaknesses of an enterprise, it is important to adhere to well-known rules.

1. The research vector must be clearly specified. When analyzing the entire business as a whole, the results will be very generalized and will be completely useless. Therefore, it is recommended to conduct a SWOT analysis in specific areas.
2. All concepts of SWOT analysis must be clearly understood.
3. Conducting assessments from a market perspective. When carrying out the analysis, it is necessary to use the strengths and weaknesses as they appear to competitors and consumers. After all, strengths will be such only if they are visible from the market position.
4. Put objectivity first. Input information must be diverse. Research should not be carried out by just one person. The possibility of in-depth analysis is allowed only if the assessment is given by a group.
5. The wording must be clear. Avoid lengthy and ambiguous phrases. The result depends on their accuracy.

How SWOT analysis works

The principle of operation of SWOT analysis is simple and comes down to a certain scheme.

The first is the identification of strengths and weaknesses by experts. These characteristics are internal.

Here the strong and weak elements characteristic of the company are identified. In many ways, this depends on the literacy of drawing up a long-term plan.

To compose expert opinion, it is enough to arrange a survey with the management of the enterprise.

The assessment of strengths and weaknesses should be carried out in at least three different areas:

When analyzing internal factors, such a model can be applied. Rate vectors:

• how much marketing activities the firm responds to its external environment;
• degree of adequacy of the sales system to the marketing channel;
• whether the organization of production processes corresponds to the adequacy of the market products;
• how are they organized logistics processes and whether they are adequate to the marketing channel;
• how consistent are financial position the company to its tasks;
• whether the administrative system corresponds to the quality of business process administration.

The second is a description of opportunities and threats.

This includes external factors, situations emerging outside the company, and the company’s business environment.

The threats are usually the same. They are:

1. Analysis of the strengths and weaknesses of the enterprise, assessment of opportunities and threats depending on the degree of impact on the company.
2. A SWOT matrix is ​​compiled, where all information is summarized in the form of tables.
3. The impact of factors is analyzed.
4. After completing the description and conducting marketing analysis, a strategy is determined that is based on the results of the descriptions proposed above, using strengths and compensating for weaknesses.

SWOT Matrix

All received information is entered into a special table consisting of 4 fields. Such a table is called the SWOT Analysis Matrix.

How to analyze the effect of factors

In accordance with the information received, an analysis is made and a conclusion is drawn regarding how much the “strengths” of the enterprise are capable of realizing the company’s capabilities in achieving certain planned goals.

The SWOT analysis matrix after filling out the necessary data will look something like this:

Strategy MatrixSWOT analysis

Finally, a matrix of SWOT strategies is drawn up. This, in fact, is what everything was started for.

All data obtained as a result of the SWOT analysis is used to develop certain directions of the strategy, along which subsequent work will be based.

As a rule, the organization carries out work in several directions at once, namely:

• realizing strengths;
• correction of weaknesses;
• taking measures to compensate for threats.

Based on the results of the analysis of tabular data, a matrix of activities aimed at correcting shortcomings in the company’s activities is compiled. All information is recorded in one table, represented by four fields:

After analyzing all the information presented in the table, a list of probable actions is compiled, the so-called “marketing plan”.

Strengths and weaknesses of SWOT analysis

A SWOT analysis of the strengths and weaknesses of an enterprise has both positive aspects and disadvantages.

StrengthsSWOT analysis:

• makes it possible to judge the strengths and weaknesses of the organization, as well as to initiate the likelihood of threats and opportunities;
• is easy to use and quite effective;
• draws a relationship between the potential and problems of the company, compares strengths and weaknesses.
• extensive data is not required for analysis;
• selects options under which the institution will exist with dignity;
• helps install promising direction company development;
• allows you to evaluate the profitability indicator and compare it with similar data from competitive organizations;
• creates conditions for assessing the existing resources of the institution;
• by analyzing the strengths and weaknesses of the project, management receives a warning about what problems may arise;
• the management team has the opportunity to expand and strengthen competitive advantages;
• thanks to SWOT analysis, a clearer picture of the market situation is formed;

SWOT analysis of the strengths and weaknesses of an enterprise helps to avoid troubles, dangers and choose the most favorable development path.

SWOT analysis and its weaknesses:

SWOT analysis is a simple tool aimed at providing structuring of information. This procedure does not offer any specific answers, quantitative estimates or clear recommendations.

The role of such an analysis is to obtain an adequate assessment of the main factors and, with a certain percentage of probability, to predict the development of specific events. The analyst should put forward appropriate recommendations.

In addition, it is only at first glance that the analysis procedure seems simple. In fact, the objectivity of the result is determined by how complete and high-quality the information was provided.

To obtain data as close to reality as possible, you will need to involve an expert who will assess the current state and determine the probable vector further development market.

If errors were made when filling out the matrix table, it is not possible to identify them during the analysis process. Therefore, if any extra factor is added, or, conversely, there is a loss of an important element, the conclusions may be erroneous.

An analysis of the strengths and weaknesses of an enterprise, carried out using SWOT analysis, allows an entrepreneur to choose the most correct direction for the development of his business. That is why it is necessary to approach the organization and conduct of such a procedure extremely responsibly.

SWOT analysis. Part 1 - Strengths and weaknesses

SWOT analysis- one of the most common methods that comprehensively evaluate internal and external factors influencing the development of a company. This is an analysis of the strengths and weaknesses of the organization, as well as opportunities and threats from external environment. “S” and “W” refer to the state of the company, and “O” and “T” refer to the external environment of the organization.

SWOT analysis is preliminary research stage when compiling strategic plans, development of strategic goals and objectives of the company.

The term SWOT was first used by Kenneth Andrews in 1963 at Harvard at a business policy conference.

Term on English language: SWOT analysis.

Main parameters of SWOT analysis

Strengths– strengths,

Weakness- weak sides,

Opportunities- possibilities,

Threats– threats.

According to the results situational analysis it is possible to assess whether the company has internal forces and resources to realize existing opportunities and counter external threats. Accordingly, an analysis of the internal and external situation is necessary.

When assessing external situation worth considering:

• legislation and political climate,
• expected or possible changes that may affect the operation of the company. (Example: changes in customs legislation);
• economic situation of the country, region (changes in GNP indicators, possible major changes in the economy potentially affecting the company, expected inflation);
• socio-demographic factors;
• changes in technology (waiting for technical innovations);
• ecological environment.

During the analysis internal situation the company's resources and business processes are assessed, and competitiveness is analyzed.

During the analysis process, the formulation of the company's sustainable competitive advantages is confirmed or changed. Key analysis factors:

Deciphering the method

The main idea of ​​the technique SWOT analysis consists of an attempt to determine by calculation how much each of the possible development paths can influence the success of the current, tactical and strategic business processes of the enterprise. When ranking threats in the SWOT analysis matrix by degree of impact, it is assumed to determine the estimated time at which the enterprise will reach a certain degree of destruction, and the sooner the indicators will worsen economic activity, the more attention should be paid to eliminating this threat. After complete completion of the work, based on a SWOT analysis and associated with identifying the greatest threats to the enterprise’s activities and determining priority areas development that promises the greatest economic effect With the available financial and human resources, the next stage begins to optimize the work of personnel.

The results of the SWOT analysis are entered into tables.

Decisive for success are always specific actions (events) related to specific goals and consistently implemented.

NexterrorsMost often found in SWOT analysis tables:

1. Conducting a SWOT analysis without a pre-established common goal. SWOT is not an abstract analysis; its use involves achieving a specific goal

2. External chances are often confused with internal strengths of the company, while they should be strictly distinguished

3. SWOT analysis is often confused with all sorts of strategies. We must not forget the main difference between one and the other (SWOT analysis describes states, and strategy describes actions)

4. In the process of SWOT analysis, priorities are not identified and specific activities are not named. SWOT-Analysis.

Rules for conducting SWOT analysis

No formal training is required to conduct a SWOT analysis. Any manager who understands the company's affairs and is familiar with the market can draw up a simple SWOT form.
But this simplicity and ease of use also has a downside. There is a risk of misuse, hasty and meaningless conclusions, and the use of vague and ambiguous concepts. In addition, do not forget that for the objectivity of the picture, only relevant, verified and fresh information must be used for analysis, which many users simply forget about.
Here are a few simple rules that will help you avoid such mistakes and get the most out of your SWOT analysis.
Rule 1. For an objective SWOT analysis, a business must be segmented by area or specific market. A general analysis that covers the entire business is inappropriate, as the results will be too generalized and useless. Focusing a SWOT analysis on a specific segment will ensure that the company's most important strengths, weaknesses, opportunities and threats are identified.
Rule 2. We must be aware that the elements of SWOT differ significantly from each other, in particular regarding their origin and spheres of influence. For example, strengths and weaknesses are internal characteristics of the company, therefore, they are under its control. Opportunities and threats are external, objective, independent characteristics of the market environment, and they are not subject to the influence of the organization.
Rule 3. The strengths and weaknesses of a company are subjective concepts. But opinions on these characteristics should not be expressed by managers or even competitors, but by clients, customers, partners, and investors. How they consider and perceive these elements is the way it is. Strengths will be considered as such as long as the market perceives them as competitive.
Rule 4. For objective analysis, diverse input data should be used. Even if it is not possible to obtain the results of extensive marketing research, this does not mean that it is enough to limit oneself to the work of one person. For accuracy and depth of analysis, it is best to organize a group discussion with the exchange of ideas, learn and take into account the points of view of all functional departments of the company. Any information or initial data must be supported by reasoned evidence ( official letters, verified quotes, industry statistics, press reports, dealer information, customer opinions and comments, government publications).
Rule 5. The more precise the wording, the more useful the analysis will be. Therefore, one should avoid broad, vague and ambiguous statements that mean nothing to most buyers.

Pros and cons

SWOT analysis is often criticized. We are talking about a standardized analysis scheme, which is not suitable for all enterprises and firms.

Benefits of SWOT Analysis

• Helps a company leverage internal strengths or differentiating advantages in its strategy.
• If the company does not yet have strong distinctive advantages, you can analyze your potential strengths and use them to achieve marketing goals.
• Analyze all the company’s weaknesses and vulnerabilities to understand whether they affect competition, market position, and whether they can be corrected based on strategic considerations?
• Know what resources and qualifications are best used to maximize opportunities.
• Identify the threats that are most critical to the company and take a series of strategic actions to ensure good protection.

Flaws

• SWOT analysis is simply a tool for obtaining visual structured information; it does not contain clear recommendations or specific formulated answers. Next is the work of the analyst.
• The simplicity of SWOT analysis is deceptive; its results are extremely dependent on the completeness and quality of the source information. An objective SWOT analysis requires experts with a deep understanding of market development trends and its current state, or to carry out a large amount of work on collecting and analyzing primary information.
• During the formation of tables, mechanical errors may occur (loss of important factors or inclusion of unnecessary ones, incorrect assessment of weighting coefficients, etc.). They are difficult to identify, except for very obvious errors, but they affect the process of further analysis and lead to incorrect conclusions and erroneous strategic decisions.

Literature and links

This is a preliminary encyclopedic article on this topic. You can contribute to the development of the project by improving and expanding the text of the publication in accordance with the rules of the project. You can find the user manual

You are the head of a company, but do you know everything about it? Are you ready to voice a clear plan for further development? own business? Find it difficult to answer? Then you should definitely put into practice already proven marketing research. They have already helped millions of entrepreneurs like them find the right solution. One of the main technologies is considered SWOT analysis.

What it is?

The acronym SWOT is an acronym for the following English words :

• Strengths – strengths or advantages of the organization;
• Weaknesses - weak points or shortcomings;
• Opportunities - opportunities or external factors that, if properly applied, will create additional advantages for the company;
• Threats – threats or possible circumstances that could harm the company.

A standard SWOT analysis is precisely a comprehensive assessment of the company’s activities, and not only its strengths, but also its weaknesses. But in the terminology adopted in this analysis, they are called sides, respectively, strong and weak. An assessment is made not only of probable external threats, but also of favorable opportunities. In this case, the results obtained must be compared with the indicators of the most strategically important competing firms.

Conducting a SWOT analysis helps answer questions such as:

• Does the company fully use its personal strengths, as well as its distinctive features, in implementing its own strategy?
• Which of the company's weaknesses need to be adjusted accordingly?
• Which potential opportunities offer a real chance of success if all possible resources are deployed and the firm's skills are taken into account?
• What possible threats should a manager pay attention to, and what actions should they take?

Marketers recommend choosing the period for carrying out a SWOT analysis when the direction in which the future development of the business is planned is formulated, and the period for determining the list of goals and setting tasks.

Swot analysis matrix

During the analysis process, specially developed templates are used, which are tables called SWOT matrices. Which one will be used is a purely individual choice. It is worth noting that the results, regardless of the selected template, are completely identical.

Any matrix swot analysis filled out according to a specific pattern. The cells describing the strengths of the enterprise are filled in first. Next we move on to its weaknesses. These two columns help describe the company's microenvironment.

To display the macro environment, you will need to fill in the remaining two columns. In one of them, opportunities should be written down, that is, those probable benefits that the company will be able to obtain in the current market conditions if no significant changes occur. And the last column of the matrix records threats - those factors that can interfere with the development of the company’s strengths and the use of the opportunities provided.

Microenvironment

Strengths include those areas where a company has significantly succeeded and what sets it apart from its competitors. Here you should also describe your competitive advantages, but be objective. These cannot be simply unfounded allegations. They must be confirmed by certain indicators.

These advantages may well include:

• unique company resources;
• personnel with a high qualification level;
• quality products;
• brand popularity.

A company's weaknesses include factors that place it at a disadvantage compared to potential competitors. As an example of the weakness of an enterprise, one can point out a limited range of goods produced or services provided, a not very good reputation, low funding or a relatively low level of customer service.

Macro environment

As you remember, the macro environment in SWOT analysis is presented in the form of probable opportunities or potential threats.

Opportunities include the most favorable circumstances, through which the company receives additional advantages. It is opportunities that contribute to the development of the strengths of an enterprise.

Threats are probable events, in the event of which the enterprise may find itself in not entirely favorable conditions for further development. Examples of such events may be the emergence of new competing companies on the market, increases in tax rates, and changes in demand from buyers.

Additional materials

The swot analysis matrix for more complete and truthful filling will require the presence of additional information. Let's consider this point in more detail. All available data will be required in the following categories:

1. Management

All information related to the organization of the work of the entire company is collected here. These are the qualifications of the enterprise’s employees, connections that determine the level of interaction between all departments, etc.

1. Production

This category is rated production capacity, quality of existing equipment, degree of wear and tear. The quality of manufactured goods, the availability of patent or licensing documentation, if required, and the cost of manufactured goods are also considered. Additionally, the reliability of partners acting as suppliers, level of service, etc. are assessed.

1. Finance.

This is the most important category that requires detailed consideration. It is here that the clearest gradation of the strengths and weaknesses of the business in question is observed. This is a cost production process, availability and speed of turnover of cash capital, stability of the enterprise in financially and its profitability.

1. Innovation.

How often are customers provided with an updated list of products? What is the level of quality and how quickly does the return on capital investments occur? This subparagraph must contain answers to all questions asked.

1. Marketing

• consumer reactions to manufactured goods;
• awareness of your brand;
• the range of products presented by the enterprise;
• pricing policy;
• the effectiveness of advertising campaigns;
• additional services offered by the company.

Rules for performing SWOT analysis

In order to avoid possible mistakes in practice and get the maximum benefit from the marketing research, strict adherence to several rules is required.

As much as possible, try to narrow the scope of the activity in which the analysis will be carried out. If you perform this procedure simultaneously for all activities of the enterprise, the data obtained will be too general and absolutely useless from a practical point of view. Focusing the analytical process on a company's position in a specific market segment will help obtain more specific data.

As you complete the matrix columns in the macro and micro environments, be careful when drawing conclusions regarding the strengths/weaknesses and opportunities/threats of certain factors. Weak or strong qualities are represented by the internal characteristics of the company. Whereas the second pair characterize the situation in a given time period, and cannot be regulated by management.

High-quality analysis is possible only when all the data is completely objective. This strategic analysis should be carried out on the basis of the diverse information presented. The research cannot be entrusted to one specialist, since the information received may well be distorted by his personal subjective perception. In this marketing research it is necessary to take into account the point of view of each functional unit of the enterprise. All data entered into the SWOT matrix must be confirmed by existing facts or the results of previously conducted research activities.

The use of lengthy formulations or the possibility of its double interpretation is completely unacceptable. The more specifically a factor is formulated, the more clear its impact on the company’s activities as a whole will be in the future. And accordingly, the results obtained after completion of the analysis will have the greatest value.

Weaknesses of SWOT Analysis

SWOT analysis is just a simple tool with which information is structured. This marketing procedure does not provide any specific answers or clear recommendations. It only helps to more adequately assess the main factors and predict the occurrence of certain events with a certain degree of probability. Formulating any recommendations based on the data obtained - this procedure is already within the competence of the analyst.

In addition, the apparent simplicity of this strategic analysis very deceptive. The veracity of the result, and accordingly the development of further transformations, is highly dependent on the completeness and quality of the information provided. To truly obtain the most realistic data, it will either require the participation of an expert capable of assessing the current state and the likely path for further development of the market, or it will be necessary to conduct a very hard work to collect and then analyze the information received in order to achieve this understanding.

Errors that may be made when filling out a matrix table are not detected during the analysis process. Therefore, the addition of an extra factor or, on the contrary, the loss of an important one or other inaccuracies lead to an erroneous conclusion, and therefore incorrect development of a further strategy.

SWOT Analysis Example

The given analysis example is for demonstration purposes only. Here is the entire sequence of actions that will help you perform a SWOT analysis.

Determination of strengths/weaknesses (sides)

First of all, analyze everything possible options. Each of the areas must contain at least 3 parameters that helped in assessing the competitive capabilities of the business.

For example, let’s take a direction like “ appearance goods". To analyze it you will need to answer questions such as:

• to what extent is the appearance of the packaging better/worse than that of a competing company;
• the convenience of packaging is better/worse compared to a competing company;
• how much better/worse is the packaging design compared to a competing company, etc.

We check the importance of identified strengths/weaknesses

Not the entire list from the first paragraph will be needed to fill out the matrix. Now you should eliminate the non-essential items. To select the right parameters, you should evaluate the impact of each in terms of satisfaction potential clients, as well as the profit received.

The results of such a check will help eliminate parameters that play a minor role. The final microenvironment rating will be fully prepared.

Identifying likely growth paths

At this stage, you will need to write potential options that can . Two questions will help with this:

1. how a company can increase its sales level;
2. What are the possibilities for reducing production costs?

Compose full list opportunities that will help your business grow. As an example, the following options can be given:

• new sales territory;
• expansion of the range;
• influx of new consumers, etc.

Next, an assessment is made and opportunities that do not have a decisive impact on profits and customer satisfaction are eliminated. Having fully analyzed the entire list received, we cross out opportunities that do not have a strong impact on the profit received and customer satisfaction.

Identifying Potential Threats

This section should list potential threat options. For example, why customers may refuse to purchase a company’s product:

• changing your usual lifestyle;
• decrease in the level of income of the population;
• changed requirements for product quality, etc.

Then we exclude threats that do not threaten the development of the enterprise over the next 5 years.

Filling out the matrix

Now that all the data has been received, we fill out the standard template. In this case, the rating of all indicators is necessarily preserved. Next, based on the SWOT information, recommendations are made for the further development of the enterprise.

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SWOT analysis (translation from English swot analysis)- one of the most effective tools in strategic management. The essence of swot analysis is the analysis of internal and external factors company, risk assessment and product competitiveness in the industry.

Definition of SWOT Analysis

The SWOT analysis method is a universal technique strategic management. The object of SWOT analysis can be any product, company, store, factory, country, educational institution and even a person. There are the following types of SWOT analysis:

• SWOT analysis of the activities of a company or manufacturing enterprise
• SWOT analysis of the activities of a government or non-profit organization
• SWOT analysis of the activities of an educational institution
• SWOT analysis of a specific territory: country, region, district or city
• SWOT analysis of a separate project or department
• SWOT analysis of a specific market or industry
• SWOT analysis of the competitiveness of a brand, product, product or service
• SWOT personality analysis

Companies often conduct a SWOT analysis not only of their products, but also of competitors’ products, since this tool very clearly systematizes all information about the internal and external environment of any organization.

The advantages of SWOT analysis are that it allows a fairly simple, correct look at the position of a company, product or service in the industry, and therefore is the most popular tool in risk management and management decision making.

The result of a SWOT analysis of an enterprise is an action plan indicating deadlines, priority of implementation and the necessary resources for implementation.

Frequency of SWOT analysis. It is recommended to conduct a SWOT analysis at least once a year as part of strategic planning and when forming budgets. SWOT analysis is very often the first business analysis step when drawing up a marketing plan.

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Part one: SWOT analysis, determining the strengths and weaknesses of a product

Elements of SWOT analysis

Explanation of SWOT analysis abbreviations: Strengths, Weaknesses, Opportunities, T=Threats.

S=Strengths

Strengths of a product or service. Such internal characteristics of the company that provide a competitive advantage in the market or a more advantageous position in comparison with competitors, in other words, those areas in which the company’s product feels better and more stable than competitors.

The importance of strengths for a company in strategic planning: due to strengths, a company can increase sales, profits and market share; strengths ensure an advantageous position of a product or service in comparison with competitors. Strengths must be constantly strengthened, improved, and used in communication with market consumers.

W=Weaknesses

Weaknesses or shortcomings of a product or service. Such internal characteristics of the company that impede business growth, prevent the product from leading the market, and are uncompetitive in the market.

The importance of weaknesses for a company in strategic planning: a company’s weaknesses hinder the growth of sales and profits, pulling the company back. Due to weaknesses, the company may lose market share in long term and lose competitiveness. It is necessary to monitor areas in which the company is not strong enough, improve them, and develop special programs to minimize the risks of the influence of weaknesses on the company’s efficiency.

O=Opportunities

Company capabilities are favorable factors external environment, which may influence business growth in the future. Importance of market opportunity for a company in strategic planning: Market opportunity represents the sources of business growth. Opportunities must be analyzed, assessed and an action plan developed to exploit them using the company's strengths.

T=Threats

Company threats are negative external environmental factors that may weaken the company's competitiveness in the market in the future and lead to decreased sales and loss of market share. The importance of market threats for a company in strategic planning: threats mean possible risks companies in the future. Each threat must be assessed in terms of its likelihood of occurrence. short term, from the point of view of possible losses for the company. For every threat, solutions must be proposed to minimize them.

Drawing up a SWOT analysis

It is advisable to adhere to the following sequence of actions when conducting a SWOT analysis:

This SWOT analysis technique allows you to assess the risks and opportunities of the company as fully and in detail as possible, plan a working marketing strategy product:

• An analysis of the surrounding market environment of a product or service is carried out in the context of external and internal factors.
• Based on the analysis, business strengths, business weaknesses, threats and market opportunities for business are formed.
• The obtained parameters are entered into the SWOT matrix for ease of analysis
• Based on the SWOT matrix, conclusions are drawn about the necessary actions, indicating implementation priorities and deadlines.

In the process of conducting a SWOT analysis, involve people interested in making a decision, experts in various issues. An outside opinion will allow you to create a more objective analysis.

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Standard view of a SWOT analysis table

In the SWOT analysis table, it is advisable to indicate factors in order of priority.