By Anna Ribas, on 9 March 2022
In every business, it is important carry out internal and external evaluations. This not only helps when it comes to developing marketing strategies, but also when setting objectives, facing challenges, and looking for new opportunities. Understanding what is working well and what can be improved is crucial, and the SWOT analysis chart is a great tool for this.
What Is a SWOT Analysis Chart?
The acronym, SWOT, stands for strengths, weaknesses, opportunities, and threats. You can conduct a SWOT analysis to help you break down the important factors and actions to take in order to improve your business.
A SWOT analysis involves evaluating your organization's performance in the marketplace and is used to develop effective business strategies. It gives you a clearer picture of what you are doing well, what is lacking, what new opportunities exist for your brand and, of course, what risks or threats you need to be aware of.
Companies can carry out an extensive SWOT analysis to make both internal and external improvements. This type of analysis provides you with a factual, data-driven picture of where your organization is and how you can take it to the next level.
Let’s break down the four elements of the SWOT chart.
Strengths
These are the things that set you apart from your competition and that you know you do well. This can include a wide variety of factors like the resources at your disposal, customer loyalty, your unique selling proposition, the technology you use or have created, etc.
Weaknesses
These are factors that limit your business development and that are in any way detrimental when it comes to executing your objectives. Identifying your weaknesses along with your strengths can give you a good idea of what your company needs to work on in order to stay competitive.
Opportunities
These are any factors that favor your brand's development or that you can implement in order to thrive. For example, Covid-19 evidenced how many of us can work from home as effectively as in an office, thereby cutting expenses. Opportunities can allow you to rearrange your business model and adapt.
Threats
These are any factors that impede the execution of your business strategy or endanger the viability of your business. They can range from increased costs to increased competition to changes in consumer behavior, etc.
How to Create a SWOT Analysis Chart
An overall evaluation of SWOT will highlight key elements that can help you develop effective strategies for both internal and external improvements. But how can you create this chart and how should you proceed? We have a few tips and steps for you to follow!
Gather Your Team
While writing down ideas on your own can work, the more people participate in the process, the better. Think of at least one team member from each area of your business and invite them to get involved in the process. It is necessary for all teams in your organization to get involved to ensure that the analysis is complete.
Draw the Chart
SWOT analyses are a visual representation of strengths, weaknesses, opportunities, and threats divided into four separate blocks. A SWOT matrix, as it is sometimes called, is a great way to gather information and take decisions with everything on the table.
A SWOT chart is actually quite simple to make. Just divide your document into four parts and start brainstorming. You can opt for columns, horizontal sections, more of a matrix, or another format that allows you to clearly organize the information.
Once you've done this, start asking questions and writing them down in each block. Here are some possible questions:
- Strengths: what do we do best? Where do we excel? Why are our customers happy with our services?
- Weaknesses: how can we improve X (be specific on what you are seeking to improve)? What do our competitors do better? What is preventing us from reaching our objectives or continuing to grow?
- Threats: is there something that may affect our company in the near future? What is our competition doing that could take business away from us? Is there a lot of competition and how strong is it? Are there any new regulations that could disrupt our business?
- Opportunities: What opportunities are available to us? How can we take advantage of them? Do we have the resources to take advantage of upcoming opportunities?
These questions will help you define where you are and how to proceed.
Overview
After writing down questions, make sure to give an overview of each SWOT element. This will help you define and summarize the content. Then, think of your objectives, what you want to achieve from each, and prepare the ways to proceed.
Also, be sure to take into account the feedback from customers as they can provide great insights for your SWOT analysis. Feedback is essential, so do not underestimate it.
Prioritize Your Objectives
Determine which elements you want to address first and which are not so urgent. For example, if you find your business has issues delivering products, you should focus on resolving this quickly. On the other hand, if you find you have many strengths and there is barely a weakness in sight, you can focus more on new opportunities.
Get to Work!
Once you have everything clearly defined, the best way to know if this system works is to put in into practice. Remember to involve your coworkers and employees if you feel that a part of the process should be improved or changed. Transparency and feedback are not only good for B2C, but also within a company.
