Market analysis and construction of a smart business plan can serve large companies and small dealers alike. How to do this? 6 words: by examining the strengths, weaknesses, opportunities and threats. In a word: SWOT
SWOT analysis – is an excellent opportunity to raise your head from your desktop and to commit thoughts on where we want to go in business next year. But how to do this properly? There are so many factors that must be taken into account in operating a business as an objective look on the big picture sometimes it seems like an impossible task. For it came to the world of business planning models – this time we focus on the SWOT model.
SWOT analysis is a model of strategic planning and analyzing a company, a product, project or person, having designed to help decision makers to get a clear picture of the economic, financial investigated organ. The name is composed of the initials SWOT Strength, Weaknesses, Opportunities, Threats (strength, weaknesses, opportunities, threats) that “translates” represent strengths, weaknesses, opportunities and threats. The model requires the definition of business purpose and listing internal and external factors tied to the organization, working for or against same objective. The internal factors may be divided into strengths or weaknesses within the organization, while external variables are described as opportunity or external threat.
In most cases that use the SWOT model, set the matrix factor of four quadrants – two rows and two columns. We define each cell of the four matrix of SWOT model and explain how to complete:
Strengths – internal characteristics of the organization or project that give a competitive advantage in the market. When you want to fill the strengths of the grid, ask yourself if you have capabilities that your competitors do not? If you have an advantage in the number or quality of the workforce? If you offer a product at a price more attractive than the competition? Or maybe the product quality is one of your strengths? Any advantage, starting with a geographical advantage, passing through an economic advantage and reach a cultural advantage may serve on the way to “empty”.
Weaknesses – internal characteristics of the organization or project that you analiyari who was in an inferior position compared to competitors. Weaknesses can take the form of financial problems and business flows, which will pressing appointments, lack of labor market positioning problematic, and still others. Despite the difficulties involved in bringing the surface psychological weaknesses, it has aimed to achieve a real picture of the weaknesses of their business in order to make a real analysis of the situation which will decide the strategy.
Opportunities – external variables that will enable the organization to create a competitive advantage for itself. It is important to understand that it’s tangible factors can be identified; otherwise any positive thought that comes to mind would quickly turn into an opportunity. Ask yourself what are the weaknesses of your competitors? If they are new markets that can penetrate? There are market trends or lifestyle that can affect your business better? If there are potential partnerships that can generate additional revenue opportunities or exposure to new markets? If global weather trends are favorable in any of your business goals, and more.
Threats – external variables that could hit your ability to compete in a certain activity. The ticking of threats, ask yourself questions such as: Are there legislative or political factors that can negatively affect business? Area are changes that could do this? Observe if was a decrease of yield or decreased market demand. If new technologies have emerged that solve the same problems as your company or address them more efficiently or cheaper? The answers to all these must be completed within heading threats SWOT matrix.
The SWOT: Excellent for small business
As a small business to consider this an old model? Take, for example, a jeweler who produce exact replicas affordable luxury jewelry handmade. Despite the fact that the business is new and now works only web shop, the owner is involved in jewelry for many years. Currently manipulate single store business site Marmalade, but he hopes to grow, so they can leave work where he works as an employee and to dedicate all his time to his new euphoria. Here here is a simplified SWOT analysis of the company:
- Skill – owner of 20 years of experience in jewelry.
- Lower costs – as a business with one employee who maintains a digital store, running costs are relatively low.
- Inventory – the owner of a large amount of copying designs and precious stones, necklaces, and parts for his work.
- Time – the owner is actually the only employee in the business, and he works part-time.
- Marketing – the business owner has no experience in digital marketing.
- Collaborating with other “players” on the site Marmalade – creating partnerships and offering products complementary to other companies on site Marmalade selling clothing or accessories.
- trainees – Trainees many schools of art and fashion are a cheap and effective workforce.
- A friend flew in Africa – Anonymous, a friend of the owner, flew to Africa and be able to bring cheap gems to return to Israel.
- problems with servers – site Marmalade might collapse due to increasing hacker attacks on Israeli websites.
- potential competition – a company with a large workforce and their physical stores can launch an online store.
- visibility – due to increased competition store may be moved to a better location less Marmalade site, the location that offers less exposure to users.
After I put everything on paper, you can create a potential strategy SWOT analysis as a function of: the business owner should try to exhaust all opportunities available to him as the owner of a shop on site Marmalade. Cooperation with another business owner on site jelly can help address its lack of experience in digital marketing. Thus, the business owner will be able to use digital partner marketing efforts for its needs, or, alternatively, to learn the basic elements of marketing such permission if the partner agrees to hand.
He has extensive experience in the jewelry business owner makes an excellent candidate for recruitment of trainees and apprenticeships develop an effective program can contribute to rapid business growth in a relatively cheap. This will enable financially support parallel marketing efforts.