The Power of SWOT Analysis
Today we are going to talk about something that is familiar to many of us - The Power of SWOT analysis, and in this write up we will explore how you can master your success by understanding the power of a SWOT analysis in business and in life.
I am sure you must have used a SWOT before, but in this write up we will take a deeper dive into how you can use this simple tool in a more effective and dynamic way. First for those of you who may not know what it is, here is a brief definition.
A SWOT analysis is a simple and effective way to look at the Strengths, Weaknesses, Opportunities, and Threats related to a business, project, or even your personal life. It helps you understand both the good and bad aspects, as well as potential chances and challenges you might face. By breaking things down into these four areas, you can create strategies that build on your strengths, improve your weaknesses, take advantage of opportunities, and protect against threats.
Okay so now the big question - how effectively have you been able to apply this simple tool?
Let's start by identifying what we want to include in each quadrant.
Completing the Quadrants
Let's start by completing each quadrant starting with the Strengths.
Strengths are the positive things that give you an edge. These could be your skills, resources, or experiences that help you succeed. But don't just list down things you or your company are good at, list down things you are exceptionally good at, things or capabilities that give you an edge above your competition. Think of your Unique Selling Proposition, what makes you stand out.
For example, Canva's USP is the following,
The simplicity of its product; drag and drop features, ready-made templates, etc. You don't have to be a professional graphic artist to use it
Affordability, and flexible pricing. You don't have to cough out a huge capital outlay to purchase the product and you can pay for what you use.
Team collaboration functionality, you can jointly work on projects and designs with your team.
What is going to make our SWOT slightly different is that we will add reasons /justifications and weightings to each strength you have identified.
One important thing to note is that for each strength, the justification should be matched to some measurable data or metrics. For example, if Canva says that the simplicity of its product is a strength, how can this be measured against other alternative image creating software? This could be the number of customizable templates Canva has against other alternatives, or the number of templates users download monthly etc. The idea is that each strength should be attached to a metric. That way you can put a more realistic weighting based on facts rather than fantasy and it will also enable you to monitor and measure progress.
Do the above for all the quadrants, your weaknesses, opportunities and threats. Remember that what makes this exercise different from your regular SWOT is the deep thinking and research required to put metrics in place.
Other Uses of SWOT
Let's look at some other ways we can apply this tool.
1. For Comparative Analysis
Now that you have a completed SWOT template with weightings, you can use it to track your progress over time. By repeating this process on a regular basis, you can keep track of how effective your strengths are over time, how you have been able to overcome or improve on weaknesses, what opportunities you have been able to exploit and how you have overcome or mitigated against identified threats.
2. For Competitor Analysis
SWOT analysis isn’t just for your own planning; it can also be used to understand your competitors. This time you will complete the template for your competitors and compare the results with yours.
From the results ask the following questions;
How much of a threat does your competition pose?
What can you do to stay ahead?
Which of your competitors' weaknesses can you exploit to your advantage?
Which gaps has your competition left that you can fill?
By looking at your competitors’ strengths, weaknesses, opportunities, and threats, you can gain insights into their strategies. This helps you predict their moves, find areas where you can do better, and identify new market opportunities. Analyzing your competitors using SWOT can help you stay competitive and innovative.
3. Other uses
The SWOT analysis can literally be applied to anything such as;
Project management
Policy development
Strategic planning
Personal development
In summary, a SWOT analysis is a practical tool for planning and decision-making, whether in business or personal life. This tool can help you make informed choices, seize new opportunities, and navigate challenges effectively.
Found this useful? Feel free to share.
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Written by Lady Shayo Imologome FSM, FCA, MBA
Business Coach, Corporate Trainer, and Public Speaker
Inspiring Leaders, Impacting Change, Influencing Tomorrow
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