El SWOT analysis or also known as SWOT analysis, is a tool for analyzing the situation of a company, observing its internal characteristics (Weaknesses and Strengths) and its external situation (Threats and Opportunities). In essence, it serves to know the real situation in which a company finds itself, in order to make future strategic decisions. It has a certain relationship with the PESTEL Analysis, so it's also interstellar to know it.
How do you do a SWOT analysis?
Due to the large versatility of SWOT Analysis, this can be applied to any sector or business activity. The most important thing is to monitor current activity for the day that changes are made to the company's strategy, actions can be measured and the benefits that have been achieved can be quantified.
The information obtained gives a picture of how the company is doing today and what its health is. It is vitally important to set both short and long term objectives. And which of these are they going to see main and secondary objectives. This is very important when it comes to account for the KPIs of the actions which are carried out both internally and externally.
Internal Analysis: Weaknesses and Strengths
In internal analysis, the main objective is to find the weaknesses and strengths that can be located in the company. Weaknesses must be corrected and improved, on the other hand, the strengths should be focused on them to enhance them. Variables are involved in this area, ranging from the production of our product or service, to marketing and the financial department.
It is advisable to have in-depth knowledge of all areas of the company to make it easier to identify strong and weak links. As the saying goes:”The strength of a chain is measured by its weakest link“, so we cannot lose focus on those aspects that can shake the future of the company.
To give a concrete example, in the marketing department A company works both online and offline campaigns: positioning on the internet, sales, distribution of products or services, customer service, setting prices, advertising and so on.
External Analysis: Threats and Opportunities
The external analysis refers to the the company's business environment. It includes all those aspects that do not depend directly on the company but that to a certain extent do affect it. These points are very important when it comes to landing the different strategies to combat threats and take advantage of opportunities.
The areas covered by external analysis are the market in general, ranging from the sector where the company operates to the environment and competition. When we talk about the market, it includes agents such as the State and consumers, their behavior, as well as the elasticity of demand. All this information must always be kept in mind to analyze the different types of experience that may affect the company: tax variations, technological innovations of the competition or the Incorporation of new Players To the market.
As for the sector, the object of study focuses on the detection of trends that allow obtaining new business opportunities. To do this, we must keep both companies and suppliers, manufacturers and customers on the radar. The analysis of the competition allows us to position the company on the map and find out how it is positioned compared to other companies. Bencharks are a good way to see how a company is doing in relation to its sector. At IZO, for example, we have the BCX o Best Customer Experience, an index that measures the quality of the service that companies provide to their customers.
Do you want to know how the best companies in Ibero-America manage the customer experience? Do you want us to include your company and your competition in this analysis? Request a free demo or more information about BCX in this email: bcx@izo.es.
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