What does a business SWOT analysis example look like? Can you use this tool to assess your personal strengths and weaknesses in order to use your talents to their fullest extent?
Let’s start by answering question no. 2. Yes, you can definitely use a SWOT analysis to identify your hidden talents, understand your weaknesses and uncover opportunities that will help you achieve your goals and dreams.
What is a SWOT analysis?
SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a key ingredient of a business and marketing plan that is not limited to profit-seeking organizations only. A SWOT analysis is an excellent tool that can be used in any decision-making situation. It can be done for a product, a place, for non-profit organizations and/ or governmental units, for individuals and/ or entire industries.
This technique is credited to Albert S. Humphrey, an American business and management consultant who worked for the Stanford Research Institute (now SRI International).
The aim of a SWOT analysis is to identify the key internal and external factors seen as important to achieving an attainable objective.
- Internal factors: strengths and weaknesses
- External factors: opportunities and threats
Sounds quite simple and yet there is a huge pitfall every company and organization should know about.
Proven SWOT Analysis Example
Here’s a great video from the Oxford Learning Lab on how to create a useful SWOT analysis.
Stop creating SWOT analysis for the entire organization or business because they provide only generic results. Focus on market segments. Create a SWOT analysis for each market segment. Analyze your biggest market segments first. Keep the 80/20 principle in mind and prioritize. Effective SWOT analysis must be linked to a market segment!
Further Mistakes to Avoid
There are 2 more mistakes that I have witnessed companies to make when designing their SWOT analysis:
1. The perspective that lies behind the SWOT analysis is not clear.
A SWOT analysis can be drawn from the following perspectives: the company’s perspective, the customer’s perspective, the competitor’s perspective, the retailer’s perspective, the end consumer’s perspective just to name a few.
2. The SWOT analysis is interesting but has no impact.
There are businesses who create excellent SWOT analysis, but the outcomes and the action points are so weak they would have no impact after implementation.
So what about you?
When was the last time you created a SWOT analysis for your business? Did you do an overall analysis for the entire company or did you focus on a particular market segment?
Did you find the SWOT analysis example we picked from the Oxford Learning Lab useful? Looking forward to your insights and feedback in the comments below.