Do you know what a Swot analysis ? It is the essential strategic tool to identify strengths, weaknesses, opportunities and threats.
Discover its definition, concrete examples and download your own ready -to -use swot matrix for free!
Definition of SWOT analysis
The SWOT matrix is a strategic analysis tool that makes it possible to establish both an internal diagnosis and an external diagnosis of a company, a product or even a project.
His interest? Identify the axes to be developed in your marketing strategy And take stock of the targeted market.
She is based on four pillars which give her her name:
- Strengths (forces);
- Weaknesses (weaknesses);
- Opportunities (opportunities);
- Threats (threats).
The SWOT finds its place in many important documents such as the Business Plan or the marketing plan.
Let us dissect each of its dimensions to help you effectively carry out your own analysis through many examples of SWOT as well as a Virgin matrix to fill (see below).
SUMMARY :
SWOT matrix: internal analysis
The internal diagnosis is the first major step in a Swot analysis: we will be interested here in the elements inherent in the company – and therefore independent of the external environment.
Forces (Strengths)
Forces are all intrinsic factors that have a positive impact : they can take multiple forms and vary largely from one case to another.
The forces of a company could be:
And for a product:
- Superior quality;
- An accessible price;
- Innovative features …
List forces is certainly the simplest step of a Swot matrix, which does not prevent it from being completely necessary: it allows to become aware of the intrinsic qualities of the company and to rely on it.
Weaknesses (weaknesses)
If it is always pleasant to display your strengths, take stock of its weaknesses is not easy:
This requires taking a step back from your activity and being as objective as possible to See what's wrongbecause nothing is ever perfect …
Some examples of weaknesses for a company:
For a product:
- A low notoriety;
- A product benefiting from a limited distribution;
- A dated, cheesy product …
By examining the strengths and weaknesses, we can perform a internal diagnosis which consists in particular in comparing the number forces to the number of weaknesses identified.
You can learn important lessons on:
- The tracks of improvement to follow;
- Good practices to perpetuate.
Swot matrix: external analysis
Now is the time to rub the external diagnosisthe second part of the Swot matrix, which is interested in the environment of the company.
Opportunities (opportunities)
We live in a world that is constantly evolving.
Every day, something moves in the environment of a business: everything is whether it can take advantage of it.
The objective of this case of the SWOT matrix is to identify The opportunities offered by your environment.
They can take multiple forms:
- A change in legislation favorable to activity;
- The development of internet sales for a product category;
- Opening up to competition from a public market;
- The bankruptcy of a competitor;
- The economic opening of a country (leading to new potential markets) …
To identify these opportunities, a constant watch is essential, whether at legal level or economically.
Threats (threats)
Everything is not rosy in the environment of a company, and if your market is full of opportunities, it probably contains a number of threats.
Here are some examples:
- A rapidly growing competitor who gains market share;
- Consumers who evolve (ex: the rise of veganism is a threat to meat producers);
- A drop in purchasing power of buyers (in the event of an economic crisis, for example);
- Binding legal or political measures …
THE external diagnosis thus makes it possible to paint a portrait of its environment, its market, its competitors…
Good to know: external diagnosis can also be deepened and improved thanks to the realization of Pestel analysis.
Example of a swot matrix
An example of a Swot matrix will explain to you better than long explanations. Here's what it can look like for a business.
Download your virgin swot matrix to fill out
By relying on these elements, it is now time for you to make your own Swot matrix.
To simplify your life, you just have to Download the free table Below and fill it with the strengths, weaknesses, opportunities and threats that you have identified for your own activity.
The strategies to be implemented using your SWOT matrix
Based on the results of internal and external diagnostics, we can set up different “crossed” strategies to solve business problems and develop it, in particular:
- Exploit its forces to seize opportunities
- Use his forces to fight threats
- Fill its weaknesses by taking advantage of opportunities
- Protect its weaknesses from surrounding threats
Understand the Swot matrix on video
If you prefer a quick video summary of what a Swot matrix is, do not miss this very good marketing strategist video on the subject:
Make your Swot analysis with a freelance marketing consultant
You now have all the keys in hand to carry out a Swot analysis worthy of the name and control your strategy in the right direction.
However, to develop a solid strategy and boost the growth of your business, it may be necessary to receive an expert opinion: Find a freelance marketing consultant on Coder.com.