What Is a SWOT Analysis?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Therefore, evaluating these four characteristics of your business is known as a SWOT analysis. SWOT Analysis in market research is an ideal tool to assess what your company does best in present circumstances and based on that plan a strategy for future growth. It also identifies the factors that are not allowing you to grow which helps immensely in market research. Using SWOT you can also protect yourself from your competitors who could exploit you knowing your vulnerability.
SWOT Analysis can help you analyze both internal and external factors of your organisation. Some factors are within the control that are mostly internal and some that are external are mostly out of control. So, it is vital to identify the maximum factors to help you take the wisest action for your business.
Here, through this post, we will try to understand the importance of SWOT analysis in market research, and how to use the findings for the benefit of your business.
Why Is SWOT Analysis Important?
SWOT Analysis helps in questioning risky speculations about your business and also finding out the vulnerable spots in your company’s performance. If you make use of SWOT very attentively and make your entire team collaborate in the process, it can come out with new understandings and give you an idea about where your business stands currently. It also facilitates developing the right approach for any circumstance. That is, unless you know the weaknesses of your organisation, it won’t be easy to realize how unreliable strengths can be in many cases.
Similarly, you may be considerably worried about your business weaknesses but, the analysis may help you find opportunities that you were not able to find earlier.
How to Do a SWOT Analysis?
If you plan everything depending on your imagination, you may go wrong. You cannot run your business efficiently with the help of assumptions. Therefore, it is necessary for you to either build a team to make observations for your organisation or hire experienced SWOT analysis experts to make observations for you.
It is essential to keep records of your strengths, weaknesses, opportunities, and threats. This will help you reach a plan of action.
Let us understand every factor in detail and decide what is right for your business.
Strengths
Your business strengths are the skills of your people, your company infrastructure & technology, years in business, marketing aptitude, operational process, your network, etc. These are the aspects that make your organisation strong. These specialities also help you stand out among your competitors. Identify the advantages your business has over other companies in your sector. Your strengths can be a motivating factor for your employees.
Your strengths are part of your organisation, as they keep you ahead of the competition. So, it is vital to find out what things you do better than others in the industry. What are the values that drive you? Additionally, identify your company’s unique selling proposition (USP), and add it to the list of strengths.
It is also important to find out how your competitors see you and what factors they consider as your strengths. What helps you in your sales is also very important to find out.
You should be aware that only the factors that benefit your business are your strengths. Strengths are something that distinguishes you from your competitors.
Weaknesses
Just like strengths, weaknesses are internal factors of your organisation. You will need to figure out whether your people, infrastructure, technology, resources, and processes are up to the mark or deficient. Once you know your weaknesses, you will have to think about how to improve, and what to avoid to convert your weaknesses into strengths.
Also, try to check how your competitors and others in the market see your weaknesses. Take time to understand why your competitors are performing better than you. Find out the areas where you are lagging.
Do not input wrong information. SWOT Analysis will be helpful only if you record correct information, even if unpleasant, and ensure you do not tamper with data to feed your false ego.
Opportunities
Opportunities are prospects that you can claim and make your own. It is an external aspect, and you will need to see it very closely to understand what might happen in the future. Factors like market trends, changes in customer behavior, developments in the industry, government policies, and innovations in the technology you use can bring positive results for your business. So, you can make a big impact by using good opportunities in your organisation. It can help you take the lead in your market.
Many times even a small change can bring in a huge transformation in your business.
Threats
Threats too are external factors and can impact your business from outside. Anything that impacts your business negatively is a threat. Things like supply-chain problems, change in market demands, or a shortage of resources may badly affect your business operations. It is essential to anticipate threats so that you can take action on time and prevent them before you become a victim.
Identify the areas or things that create hurdles for your business operations, processes, and other necessary activities. The opportunities can turn into threats if you do not upgrade yourself on time and as per the need of the market. Do compare yourself with your competitors but do not copy them. Things that may be right for them may not be right for you. Bad debts and cash flow problems too can lead you to vulnerable situations.
These types of threats can severely hurt your business. So ensure you are keeping yourself informed all the time.
Conclusion
SWOT Analysis is a beneficial tool for all organisations in understanding companies’ strengths, weaknesses, opportunities, and threats and further making future business plans. It is also a great evaluation technique that can be very helpful in market research studies to understand business feasibility, If you are looking for a SWOT analysis expert or market research company for your business then make sure you hire experienced and adequately qualified professionals from the industry.
