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<\/p>\nFrom small-scale projects to your organization as a whole, a SWOT analysis can be a highly effective and valuable tool for virtually any application. Offering a detailed picture of both potential and performance, it can be a smart method of evaluation for many different purposes.<\/p>\n
If you\u2019ve spent some time working in a corporate office environment, you may be familiar with the term \u201cSWOT analysis;\u201d otherwise, it may be a completely foreign concept to you. But don\u2019t assume that the concept of conducting a SWOT analysis is one that should stay within the four walls of a corporate office.<\/p>\n
Actually, just about anyone in a leadership position (for a company, department team, or even a short-term project) can put a SWOT analysis to excellent use.<\/p>\n
For the V Digital Services team, SWOT analyses are a major part of how we do our work and tackle projects of all sizes and types. And for many of our clients, a single SWOT analysis has proved to be a key to unlock a better plan for future growth and success.<\/p>\n
But before you can start using this tool for your own business or project, you\u2019re going to need to know more about it. First, we\u2019ll start with the basics of what a SWOT analysis actually is, and then we\u2019ll cover how to do a SWOT analysis and even walk you through some SWOT analysis examples. By the time you\u2019re done reading this guide, you\u2019ll be well-prepared to put everything you\u2019ve learned into practice.
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First and foremost, let\u2019s get the most important question out of the way: what is a SWOT analysis?<\/p>\n
A SWOT analysis is a specific technique you can use to assess a project or even your organization as a whole. Its purpose is to determine the Strengths, Weaknesses, Opportunities, and Threats (SWOT) of whatever you are assessing.<\/p>\n
Because a SWOT analysis is such a flexible concept, it can be applied in many different scenarios. One of the most common ways to use a SWOT analysis is to evaluate a business at the organizational level as a means of measuring how closely it is aligned with its success benchmarks and growth trajectories.<\/p>\n
However, it\u2019s an equally-productive tool for measuring the performance of a specific project, such as a digital marketing campaign, comparing it to initial goals and projections.<\/p>\n
We\u2019ve covered that SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats, but what do each of those actually mean? Understanding the larger concept of SWOT analysis means grasping each element on an individual level, so let\u2019s take a deep dive into each of the four parts now.<\/p>\n
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The very first piece of a SWOT analysis is Strengths, which is fairly self-explanatory. The Strengths captured in a SWOT analysis could be of the more abstract variety (such as your organization\u2019s well-established brand attributes) or something more concrete (like the attractive value proposition of a new product).<\/p>\n
Other examples of Strengths for a SWOT analysis include:<\/p>\n
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After determining what you\u2019re good at, it\u2019s time to take a closer look at the parts that could use some work: weaknesses. This is perhaps the piece of a SWOT analysis that is the most challenging because it requires a certain level of honesty and self-awareness. However, it\u2019s also a vital part of making the most of the tool. Weaknesses can include budgetary constraints or even broad organizational challenges such as untrained staff.<\/p>\n
Other examples of Weaknesses for a SWOT analysis include:<\/p>\n
![\"subheader-opportunities\"](\"https:\/\/www.vdigitalservices.com\/wp-content\/uploads\/2021\/07\/subheader-opportunities-1024x212.jpg\")
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Once you\u2019ve covered Weaknesses, it\u2019s time to take a turn towards the positive. Look for growth opportunities, like a soon-to-be debuted marketing strategy that will help you reach new markets. Another opportunity could be an unmanageable number of leads coming in from successful marketing efforts. In some cases, Opportunities are disguised as challenges \u2013 but they\u2019re actually chances to increase success, grow the company, or advance your organizational goals.<\/p>\n
Some other examples of Opportunities for a SWOT analysis include:<\/p>\n
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<\/h3>\nThe final category or element of a SWOT analysis encompasses anything that could pose a risk to your company or its success: Threats. The various ways in which Threats take shape can vary, depending on a multitude of factors. But ultimately, the one thing all Threats have in common is the potential to jeopardize your vision for the future.<\/p>\n
A few examples of Threats for a SWOT analysis include:<\/p>\n
Although the four parts noted above are the typical foundation of all SWOT analysis, many organizations also choose to be even more specific by organizing the elements into two separate categories: Internal and External.<\/p>\n
Strengths and Weaknesses are most commonly placed under the umbrella of Internal factors because they are usually the direct result of decisions within the control of your team or organization. For example, if one of your SWOT analysis Weaknesses is a high churn rate, that is within the Internal category because your organization can control it. In contrast, a Threat such as an emerging competitor is usually outside your realm of control, making it External.<\/p>\n
The basic breakdown of Internal vs. External looks like this:<\/p>\n
Frequently, an organization will develop strategies to cover the overlaps between Internal and External factors. For example:<\/p>\n
SWOT analyses are also referred to as IE matrices or Internal-External Analyses. You aren\u2019t necessarily required to put the primary elements into subcategories, and a SWOT analysis can still be extremely helpful without this step. However, it can be a useful method for establishing strategies for moving forward, as well as pinpointing exactly how much control you can exercise over a specific problem.<\/p>\n
Now that you\u2019re prepared with a basic understanding of the definition of a SWOT analysis, you\u2019re ready for the next step: learning how to conduct a SWOT analysis.<\/p>\n
You can take many different approaches to structure a SWOT analysis, but getting started looks the same regardless – with a series of questions. To determine each element of the analysis, you\u2019ll need to work through a variety of questions that help you zero in on the specific topic. We\u2019ll walk you through example SWOT analysis questions for each of the four elements so that you have a helpful framework for your first \u2013 and future \u2013 attempts.<\/p>\n
Strengths can sometimes be the easiest to pinpoint, simply because they are often the most apparent. But even if you think you can quickly list off different strengths, working through some quality questions can help you think on a deeper level.<\/p>\n
Here are a few ideas:<\/p>\n
A similar principle can be used to generate a list of weaknesses.<\/p>\n
Some example questions:<\/p>\n
As you build a list of strengths and weaknesses for a SWOT analysis, you might find yourself thinking that the process is extremely simple thus far. However, this is due in part to the fact that both strengths and weaknesses are internal factors, making them easier to pinpoint. Because opportunities and threats are external factors, finding them often requires increased effort and a greater amount of data.<\/p>\n
That\u2019s not to say that you should feel intimidated to make a move to opportunities and threats. Just be aware that these lists won\u2019t be as quick to construct and that you may want to be prepared to do some in-depth research on industry trends, competitor activity, and other topics.<\/p>\n
The opportunity aspect of a SWOT analysis can often be an uplifting part of the exercise because it starts to uncover the numerous routes your project or organization has towards growth.<\/p>\n
Some of the questions you can ask yourself to determine opportunities include:<\/p>\n
While you can absolutely use thoughtful questions to unearth potential threats, they\u2019re usually not that difficult to identify. In fact, it\u2019s likely that you are already well-aware of the threats facing a project or your business.<\/p>\n
Threats are most commonly external (new competitors), but they can sometimes be internal (high staff turnover).<\/p>\n
When you\u2019re discussing SWOT analysis, you may hear another type of analysis come up as well: the PEST analysis. In terms of SWOT analysis vs. PEST analysis, it\u2019s not necessarily a conversation of one being better than the other. In reality, they are both highly useful tools. However, a PEST analysis can serve as a complementary tool to a SWOT analysis in many cases.<\/p>\n
For example, consider SWOT analysis threats such as market volatility or shifts in regulatory policies. External factors like these are highly nuanced and usually involve a huge number of individual factors. For this reason, a SWOT analysis may not be in-depth enough to assess threats like these. As a result, many organizations conduct PEST analysis alongside SWOT analysis for a more comprehensive result.
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What is PEST Analysis?
\nLike a SWOT analysis, PEST analysis is based on four elements: Political, Economic, Sociocultural, and Technological. But notice that unlike the SWOT analysis, PEST analysis is only concerned with external factors.<\/p>\n
Here are some examples of the factors that can fall under each of the four parts of a PEST analysis:<\/p>\n
Many of the same factors that show up in a PEST analysis can prove to be relevant to opportunities and threats assessed in a SWOT analysis. Additionally, challenges measured in a PEST analysis are typically stretched over a longer timeframe, making them more significant. For these reasons and others, SWOT and PEST analysis are commonly conducted simultaneously.<\/p>\n
While you can construct an immediate, actionable plan using SWOT analysis, a PEST analysis can serve as the basis for long-term strategies.<\/p>\n
At first glance, SWOT analyses might seem better-suited to large corporations, but small businesses and organizations (as well as marketers) can reap equal benefits. There is absolutely a certain level of investment involved in creating a SWOT analysis, but the payoff is usually more than worth it \u2013 even for a very small company.<\/p>\n
First, a comprehensive SWOT analysis is an outstanding way to gain insight into your business operations. For a small business owner, it\u2019s easy to become focused on the day-to-day. But when you\u2019re constantly zeroed in on the minute details, you lose out on the benefits of getting a big picture perspective. With a SWOT analysis, you can take a step back and see a broad view of your business, as well as the place it holds in your industry.<\/p>\n
Additionally, SWOT analysis can also be advantageous for use in smaller-scale scenarios, such as gauging the strengths and weaknesses of an upcoming content project or advertising campaign.<\/p>\n
Finally, the purpose of a SWOT analysis goes beyond listing strengths, weaknesses, opportunities, and threats. It\u2019s also intended to give you a chance to map out tangible strategies for solutions. From understanding hiring needs to constructing budgetary plans, SWOT analyses are a handy tactic for strategic planning.<\/p>\n
Now, you know just about everything needed to get started with a SWOT analysis of your own \u2013 so let\u2019s do a practice run to put your knowledge to the test.<\/p>\n
We\u2019ve come up with a fictional, family-owned restaurant located in an urban community for our example SWOT analysis. Using this imaginary eatery, we\u2019ll walk you through each step of the SWOT analysis, so you can get a minute-by-minute illustration of how a SWOT analysis works.<\/p>\n
You can set up your SWOT analysis however you\u2019d like. However, the most common approach is to outline the analysis in a matrix with four quadrants, one for each of the four elements. Using this presentation makes it easy to see which elements are internal vs. external and also delivers the data in an easy-to-read format.<\/p>\n
Using the matrix approach, here\u2019s an example of a SWOT analysis for our fictional family restaurant:<\/p>\n
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| Strengths<\/b><\/td>\n | Weaknesses<\/b><\/td>\n<\/tr>\n| \n |
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