SWOT 101 with helo!
Strengths, weaknesses, opportunities and threats. Four words that, when together, compile a steady basis for improving and understanding one’s self or business. Originating from the 60’s and 70’s, it’s been aiding companies and other institutions for quite some time now and the concept has been widely embraced in schools and universities as well.
In this blog post we’re going to dive into the basics to help you get a better understanding of SWOT and ultimately, a better understanding of yourself or your business.
The Reason
So, what is SWOT exactly and why should you use it? The answer is actually quite simple. It is nothing more than four of your key characteristics put together to define yourself or your business in a clear and direct manner.
Knowing what your strengths, weaknesses, opportunities and threats are equals knowing where you are right now, and what you need to do to be where you want to be.
The Basics
Basically, SWOT can be divided into two sections: internal and external. Strengths and weaknesses belonging to the former and opportunities and threats to the latter. Internally you want to look at your assets and liabilities. For example, how do you handle certain issues? How do the members of your business communicate? Externally is more about what you attract and what is not in your immediate control.
Practicing SWOT can be fun and easy, but it can also be serious and difficult. Depending on the intensity of your analysis you will have different experiences but in any case, the construct of SWOT stays basically the same and revolves around the same four pillar words.
The How
To get started, just write the words down and start defining you or your company in the most honest way possible. A commonly used format is the four square matrix which is a big square divided into four sections but this is not necessary, all you need to do is get the words on paper and start digging your brain!
We encourage you to try and see for yourself how easy it can be, maybe you’ll discover new things or find patterns you haven’t seen before.
The Questions
There are a few questions you need to ask yourself to complete your SWOT analysis.
Strengths
1. What is our competitive advantage?
2. What resources do we have?
3. What products are performing well?
Weaknesses
1. Where can we improve?
2. What products are underperforming?
3. Where are we lacking resources?
Threats
1. What new regulations threaten operations?
2. What do our competitors do well?
3. What consumer trends threaten business?
Opportunities
1. What technology can we use to improve operations?
2. Can we expand our core operations?
3. What new market segments can we explore?
