A strategic ally that companies have is the SWOT analysis. This administration tool allows you to find and know exactly the internal and external elements that surround the organization.
Therefore, when looking for situations that help to make decisions, SWOT is a very useful functional element. This will allow you to set goals more realistically.
For you to become an expert in strategic analysis, we have prepared this article for you. We will teach you all the information related to a SWOT analysisfrom its characteristics to the steps you must take to create a correct analysis.
What is a SWOT and what is it for in the business field?
SWOT is the acronym for Strengths, Weaknesses, Threats and Opportunities. that a person or a company has in a certain situation with respect to a market in which it moves. Namely, It is a technique that is used to know exactly the context that surrounds an individual or organization. When it is possible to know all the variables that exist, The company manages to set the objectives more accurately in order to achieve them.
This will make it possible Create a work plan in which you take advantage of the opportunities you have, defends against threats, fortifies its weaknesses and takes advantage of its strengths to obtain the greatest amount of participation in the target market. The SWOT will make it possible for them to take loans in investment projects with more security and analyze the internal rate of return or IRR more accurately. Establishes the parameters and general conditions of the patrimonial structure to carry out the project.
SWOT objectives What is the main intention of carrying out this analysis?
The main reason why a company should carry out a SWOT analysis is because from this information you will be able to obtain correct answers to certain parameters. This is without neglecting the general objectives that we have mentioned in the previous paragraphs. For example, if sales have fallen you can tell from the threat structure if there is a new competitor or substitute item that has entered the market and the company has not noticed.
Another of the objectives pursued by the SWOT it is know the limitation barriers that a market has to access it. At this point it could also be analyzed if the company has a weak infrastructure to enter. So that The objective in this case is to find the reasons why a company is not suitable to develop in the target market. that has been raised
When the analysis results are established SWOT they can be implement policies to make decisions correctly and thus find the best path. It should not be forgotten that a company’s resources are very valuable, so it is necessary to move forward without compromising the future.
What are the most important advantages of doing a SWOT in your Social Media plan?
When a SWOT analysis is carried out, the following benefits are achieved:
- are known precisely What is the capacity of the company to face or maintain strategies commercials in a certain target.
- It allows know the resources available that the company has, so that more demanding objectives can be set.
- is also achieved establish the circumstances by which sales have decreased or costs have increased. In this way it is possible to modify the degree of profitability that shareholders want to obtain and thus establish a certain price.
- Not only can factors related to financial results be analyzed, but also study the resources that represent threats for the general control of the organization.
- By knowing the weaknesses that a company has, it also allows decisions to be made to correct them and thus turn them into opportunities that improve the company’s situation compared to the competition.
- technological changes that exist in the market can be known with greater precision when an analysis is carried out SWOT. Therefore, this technique allows finding opportunities that help improve computer systems.
- An important advantage of an analysis SWOT it is make the most of external situations that occur in the market. For example, when there are short-term breaks in the economy or in population health, the company can produce different elements that will help the country’s inhabitants.
- with a studio SWOT can know the movements made by competitors in the marketas well as the existence of complementary or substitute products that threaten the articles themselves.
Pairs of a SWOT What are these variables and what are they for?
The SWOT analysis is done by a 4 element matrix in which all the situations that are involved in each of the variables of the method must be included. Therefore, different types of decisions can be made according to the place that an element occupies in two SWOT variables. This set is called peers.
We will see below which are the pairs that are formed in a SWOT matrix:
success pairs
When an item is found in the quadrant of strengths and in the quadrant of opportunities, it is an ideal situation. The company must take actions to develop the product, strongly consolidate the business model or adapt the different items to this new situation. The company can also make decisions to increase its presence in different geographical areas adapting to each of them. This will allow increase income and therefore, obtain higher profitability.
adaptation pairs
The pairs of adaptation refers to the decision-making that the managers of a company must face when a situation presents itself as a weakness What does the company have? but at the same time it is an opportunity to develop new paths. In this case, it is recommended to obtain the best advice from professionals to reorient the line of action that the organization had been taking up to that moment.
reaction pairs
when they exist strengths within the company, but at the same time that same situation represents a threat For the company, it is necessary to face the risk based on internal resources. For this, it will be convenient to have defensive professional suggestions that generate corrective actions in the shortest possible time.
risk pairs
In this case, a weakness of the company is also a threat found in the market.. To solve these problems it is necessary to act quickly to turn weaknesses into strengths and thus be able to survive external obstacles. After this, it will be necessary to adapt to be able to combat the threats.
Learn step by step how to do a SWOT like a marketing expert
The steps you must take to make a SWOT without errors are:
Identification of internal and external elements
The first thing you should do when you want to perform an analysis SWOT is studying all the elements that you have within your company. To do this, you will need to survey all internal areas to find out how human resources are made up, what their tasks are and what positions they occupy. You will have to compare these results with the organizational culture that you intend. This will help you correct deviations and take into account criteria that you could incorporate.
What you will have to do now is see specifically the production departments and the commercial area. This will help you understand the manufacturing process that raw materials have to become finished products. Next, You will study the procedure that is carried out to sell, from taking orders to their effective delivery to the customer. When you have performed this deep inspection of all your internal components you will realize that there will be things that you must change.
So that you will have to make decisions to make them effective. Then, you will know that there are operations that you must maintain, since you are doing it well and you have the correct infrastructure. So the benefits you get will help you carry out the objectives set. After the first stage, you will have to start studying the market in which you move or to which you want to reach. For this, the first thing you should know is the level of billing and production that it has.
This will help you determine the size of the client group and so you can compare it with your productive capacity. Once you are clear on what the size is, You are going to have to analyze the competitors that are in it. In this case, you should know what their strengths and opportunities are.
Also, you will have to inspect all substitute products on the market. When you have this information, you will realize that there will be opportunities that you should take advantage of, as well as threats that you should take advantage of. You must make decisions so that they do not affect your company.
peer grouping
What you should do now is to introduce all the elements that you have identified, both internal and external, from the previous step and place them in the SWOT matrix. This will help you find the pairs that will be associated with success-based decision making, adapting to reactive tasks, and risk taking.
Strategy planning
Once you have grouped the elements in pairs, you will have to carry out a strategic planning that will allow you to carry out the objectives set. For this you will have to project for each of the deviations that you have found the execution time and the tasks that must be carried out. Later You will have to analyze those situations that you do not have to change and that represent a strength of your company.
For this case, You will have to plan how you are going to advance in decision-making without affecting these areas are working well. Finally, you will have to choose all those activities that will help you avoid threats that exist in the market and that put your company at risk. When you have all these elements ready, you will have to assign them to the different departments which will have a person in charge for each plan.
Next, you will have to carry out the execution and at the same time you will have to control that execution. Keep in mind that there will be deviations between the actual and the planned. Therefore, you will have to consider processes to correct these deviations. You can do this with the creation of areas that help you quickly reach the objectives set and stay in the market as a leader.
Tips to make a more effective SWOT for your company or personal brand
Pay attention to the following tips that will help you carry out a more effective SWOT, either for your company or personal brand:
Try to be as objective as possible
Do the SWOT analysis with your head and not with your heart. Although this is difficult for an owner, since he has emotions deposited in a way …
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