SWOT Analysis was originally coined by a management consultant named Albert Humphrey at the Stanford Research Institute. He recognised that corporate planning had met with little success, and so developed the SWOT Analysis as a central framework for medium and long-term planning efforts. Its popularity has soared ever since its conception in the 1960s.
It can be difficult to integrate an effective business strategy into a company, especially when the day-to-day activities of a small or medium enterprise are taxing. Using the SWOT analysis framework, a business can easily spearhead a business strategy. Whether there’s a need for a more effective marketing strategy or a need to revaluate product lines, the SWOT analysis strategy is a well recognised framework to achieve results. A SWOT analysis is used to identify the positive and negative aspects of a businesses and find opportunities and threats outside of the company.
SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
Strengths – What is the business doing well? What products are selling? What is your brand recognised for? In essence, identifying your company strengths should help refocus efforts on what a company is good at.
Weaknesses – What are the businesses’ weaknesses? Is our marketing strategy not paying off? Which product lines are we not making it off the shelves and out of the stock room? What assets does a company have or offer, that are not being taken advantage of? Identifying key weaknesses can assist decision making when it comes to scrapping the unsellable products, or a trying a different approach to push forward.
Opportunities – What is happening now outside of the company that could be advantageous? What opportunities lay out their for the taking? What trends offer a chance for growth and increased market share? The Assembly of Solutions ltd is centrally focused on sustainability efforts because of consumers ongoing demand for environmentally friendly products and process, these trends offer businesses an opportunity for the taking if current trends are realised and capitalised on to fuel growth.
Threats – What is happening outside of the company that could be disastrous? What government policies could cause a problem for a company? and how can the company minimise these problems? Are there other companies in the market that are making it saturated, and affecting business growth? How can a company get ahead of these threats and minimise their potential damage to a company?
All of these questions are the right kind of questions when using a SWOT analysis strategy to move your enterprise forward. Identifying the strengths, weaknesses, opportunities and threats is the first step forward, the second is how you can minimise or maximise these weaknesses or strengths. The Assembly of Solutions will endeavour to keep you up to date with opportunities and threats in the member’s portal, but individually integrating this knowledge into your business model, new ideas, marketing strategies etc., is key to market growth and increased profitability.