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A Business SWOT Analysis is a powerful technique for understanding your strengths and weaknesses and for looking at the opportunities and threats you face. A business SWOT analysis is used in a business context. The business SWOT analysis helps you carve a sustainable niche in your market.

What makes the Business SWOT Analysis particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well placed to exploit. By understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares.  More than this, by looking at yourself and your competitors using the Business SWOT Analysis, you can start to craft a strategy that helps you distinguish yourself from your competitors, so that you can compete successfully in your market.

How to Use the Tool

To carry out a Business SWOT Analysis, it is as simple as making a request.    CLICK HERE FOR FREE BUSINESS SWOT ANALYSIS. Another option is to do the Business SWOT Analysis yourself. As a part of this process in reviewing your business answer the following questions:

Strengths:

· What advantages does your company have?

· What do you do better than anyone else?

· What unique or lowest-cost resources do you have access to?

· What do people in your market see as your strengths?

· What factors mean that you “get the sale”?

Consider this from an internal perspective, and from the point of view of your customers and people in your market. Be realistic: It’s far too easy to fall prey to “not invented here syndrome”. (If you are having any difficulty with this, try writing down a list of your characteristics. Some of these will hopefully be strengths!)

In looking at your strengths, think about them in relation to your competitors – for example, if all your competitors provide high quality products, then a high quality production process is not strength in the market, it is a necessity.

Weaknesses:

· What could you improve?

· What should you avoid?

· What are people in your market likely to see as weaknesses?

· What factors lose you sales?

Again, consider the Business SWOT Analysis from an internal and external basis: Do other people seem to perceive weaknesses that you do not see? Are your competitors doing any better than you? It is best to be realistic now, and face any unpleasant truths as soon as possible.

Opportunities:

· Where are the good opportunities facing you?

· What are the interesting trends you are aware of?

Useful opportunities can come from such things as:

· Changes in technology and markets on both a broad and narrow scale.

· Changes in government policy related to your field.

· Changes in social patterns, population profiles, lifestyle changes.

· Local events.

A useful approach when doing the Business SWOT Analysis is to look at your strengths and ask yourself whether these open up any opportunities.  Alternatively, look at your weaknesses and ask yourself whether you could create opportunities by eliminating them.

Threats:

· What obstacles do you face?

· What is your competition doing that you should be worried about?

· Are the required specifications for your job, products or services changing?

· Is changing technology threatening your position?

· Do you have bad debt or cash-flow problems?

· Could any of your weaknesses seriously threaten your business?

Carrying out this analysis will often be illuminating – both in terms of pointing out what needs to be done, and in putting problems into perspective.

Strengths and weaknesses are often internal to your organization or small business. Opportunities and threats often relate to external factors. For this reason the Business SWOT Analysis is sometimes called Internal-External Analysis and the SWOT Matrix is sometimes called an IE Matrix Analysis Tool.

You can also apply the Business SWOT Analysis to your competitors. As you do this, you’ll start to see how and where you should compete against them.

In my last post on How to Write a SWOT Analysis I discussed the short and long answer to the How To.  The next step in the quest on How to Write a SWOT Analysis is to take each of the four areas of the SWOT analysis – Strengths, Weaknesses, Opportunities, and Threats – and expand upon them.  These four areas are the foundation of the building.  If we do not take the time to develop a strong foundation our business or building will crumble or will not have the strength to withstand the hurricane force winds of adversity that any business encounters.  It is important to understand how to write a SWOT Analysis so that we have a firm foundation.

Consider the four main areas and expand upon those to have an Expanded SWOT Analysis.

Do not be lazy in constructing your foundation.  There are additional steps beyond a traditional “text book” SWOT analysis that you can do by delving deeper into industry dynamics. A more in-depth SWOT analysis is just one of the steps that can help you better understand your company’s competitive situation.

One way of the many ways to step beyond a traditional SWOT analysis is to include in the analysis more detailed competitor information. This detailed information can include activities that are internet related, such as participation in trade organizations, search engine inclusion, and outside links to the sites. This type of an analysis will better help you spot opportunities for your company and threats to your company.

You can also take a closer look at the business environment. Opportunities can come about as a result of a changing business environment. Some examples are:

A new trend develops for which demand outstrips the supply of quality options. Early on, the trend toward healthy eating coupled with an insistence on good-tasting food produced a shortage of acceptable natural food alternatives, for example.

A customer segment is becoming more predominant, but their specific needs are not being fully met by your competitors. An example of this is the Hispanic population, which underwent a growth surge in the late 1990′s and early 2000′s.

A customer, competitor, or supplier goes out of business or merges with another company. With the demise of many pure- play “dot coms”, examples of this abound. As each went out of business, opportunities arise to gain the customer base of the now defunct business.

You can also expand the reach of a SWOT analysis through surveys. You can learn more about your own as well as competitor’s sites and businesses. Areas that you should consider researching include 1) customer awareness, interest, trial, and usage levels, 2) brand, site, and/or company image, 3) importance of different site or product attributes to your customers, and 4) product and/or site performance.

Whether using a basic or more advanced approach to SWOT analysis, you are sure to come away with new found insights. Use the SWOT analysis to increase your company’s profitability, effectiveness and as input into your business or marketing plan.

The strong foundation that is created as we answer How to Write a SWOT Analysis is well worth the time expended.  The Business Plan and SWOT Analysis will fortify your business to meet the challenges that come to any business.  If you still do not understand how to write a SWOT Analysis you should contact the experts who can help you.

You can contact these experts
by simply clicking here.

The SWOT Analysis would seem fairly easy since there are only four main factors to examine.  A SWOT Analysis Example however shows the SWOT Analysis can become extremely detailed.  Once you understand how detailed the SWOT Analysis can become you will start to see the synergy between the Business Plan and the SWOT Analysis and why you need to use both in your small business.

Michael McCarty gives an excellent SWOT Analysis Example, parts of which follow.  Many people desire to establish their own food related business.  Mr. McCarty examines a Subway ® franchise through the use of a SWOT Analysis Example.

“The United States fast food market has seen a healthy rise in growth within the last three years which forecasts can be sustained. The fast food market is forecast to maintain its current growth expectations, with an anticipated Compound Annual Growth Rate (CAGR) of 2.3% for the five-year period 2005-2010. This is expected to drive the market to a value of $57.6 billion by the end of 2010. Drivers of growth include increasing numbers of Americans in the workplace, which reduces the amount of time spent on preparing meals at home. In 2010, the United States fast food market is forecast to have a value of $57.6 billion, an increase of 12.1% since 2005.

Forecast Volume

In 2010, the United States fast food market is forecast to have a volume of 37 billion transactions. This represents an increase of 5.3% since 2005. The CAGR of the market volume in the period 2005-2010 is predicted to be 1%.

Success Factors

Success factors for fast food franchisees will include products and marketing targeted to healthier menu selections, brand consistency, low start-up costs, franchisee support, and consumer convenience. Subway ® represents a poignant example of a fast food franchisee ready for success in the future fast food market. Their strategies transcend the fast food market and apply to many other markets and products.

SWOT Analysis

Subway sandwich shops are well positioned to leverage their strengths and address reasonable threats, weaknesses, and opportunities. The table below highlights these Strengths, Weaknesses, Opportunities, and Threats.

Strengths

• Size and number stores and channels
• Menu reflects demand for fresh, healthy and fast.
• Use of non-traditional channels.
• Partnering with the American Heart Association.
• Worldwide brand recognition.
• Customizable menu offerings.
• Low franchisee start up costs.
• Franchisee training is structured, brief and designed to assure rapid start-up and success.

Weaknesses

• Décor is outdated.
• Some franchisees are unhappy.
• Service delivery is inconsistent from store to store.
• Employee turnover is high.
• No control over franchise saturation in given market areas.

Opportunities

• Continue to Grow Global Business.
• Update décor to encourage more dine-in business.
• Improve Customer Service Model.
• Continue to expand channel opportunities to include event wagons.
• Improve franchisee relations.
• Experiment with drive-through business.
• Expand packaged dessert offerings.
• Continue to revise and refresh menu offerings.
• Develop more partnerships with movie producers and toy manufacturers to promote new movie releases through children’s menu packaging and co-branding opportunities.

Threats

• Franchisee unrest or litigation.
• Food contamination (spinach).
• Competition.
• Interest Costs.
• Economic downturn.
• Sabotage.
• Law Suits.

Competitive Analysis

Subway is not without competitive pressures. Chief competitors include Yum! Brands, McDonalds, Wendy’s, and Jack in the Box. Yum! Brands are the world’s largest, with 33,000 restaurants in over 100 countries. Four of the company’s highly recognizable brands, KFC, Pizza Hut, Long John Silver’s and Taco Bell, are global leaders of the Mexican, chicken, pizza, quick-service seafood categories. Yum! has a workforce of 272,000 employees and is headquartered in Louisville, Kentucky.

McDonald’s Corporation (McDonald’s) is the world’s largest foodservice retailing chain with 31,000 fast-food restaurants in 119 countries. The company also operates restaurants under the brand names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. McDonalds operates largely in the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people.

Wendy’s International (Wendy’s) operates three chains of fast food restaurants: Wendy’s (the third largest burger chain in the world), Tim Horton’s, and Baja Fresh. Wendy’s operates over 9700 restaurants in 20 countries, has been included in Fortune magazine’s list of top 500 US companies, is headquartered in Dublin, Ohio, and employs about 57,000 people.

Jack in the Box owns, operates, and franchises Jack in the Box quick-service hamburger restaurants and Qdoba Mexican Grill fast-casual restaurants and is headquartered in San Diego, California.

Target Markets

The increase in sales of the sandwiches has been a result of decreases in consumer interest in hamburgers and fries and increases in demand for healthier options. Sales of sandwiches are growing 15 percent annually, outpacing the 3 percent sales growth rate for burgers and steaks.

Current Marketing Program

A new breed of restaurant is making big gains against the market-saturated hamburger establishments. Termed “fast-casual,” these restaurants are dominated by Mexican chains, and sandwich restaurants offering fresh-baked breads and specialty sandwiches.

Responding to evolving consumer expectations for health, fresh, custom-made sandwiches; Subway’s marketing program addresses these expectations through a number of approaches. The most notable were the television commercials featuring Jared. These commercials emphasize the healthy aspects of a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway sandwich diet. Subway also markets through a national sponsorship in events such as American Heart Association Heart Walks and local events such as triathlons, and children’s sports teams.

The Subway example represents marketing and product strategies that are classic examples of focusing on market demand, consumer trends, product leveraging, and innovation. The marketing strategies of creating clear brand recognition, brand and product association, and market demands, have strategically positioned Subway to advance market share into the near future. These marketing strategies are also repeatable fundamental marketing strategies transcending the fast food market. Does your marketing strategy bind brand recognition to products that support your market’s future direction?”

Does this SWOT Analysis Example help you understand better not only why you need the SWOT Analysis, but also why you perhaps will need assistance in the creation of your company?  You are going to spend time, money and effort to develop and run your company.  Take the time at the beginning to ensure that you are properly prepared for your new endeavor.   Consider this SWOT Analysis Example as you begin your business.  If you are like me the idea of a SWOT Analysis may seem intimidating.  Get help with your SWOT Analysis Here.

What is a Business SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? This type of analysis is more than just a WHO.  All small businesses need to include a SWOT in their strategic planning. A Business SWOT Analysis is a key element of successful strategy development.What is a Business SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? This type of analysis is more than just a WHO.  All small businesses need to include a SWOT in their strategic planning. A Business SWOT Analysis is a key element of successful strategy development.The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a Business SWOT Analysis is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. Another reason to use the SWOT is it helps identify and then further, minimize internal weaknesses.  The SWOT Analysis can also help you develop management strategies for these external threats.The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a Business SWOT Analysis is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. Another reason to use the SWOT is it helps identify and then further, minimize internal weaknesses.  The SWOT Analysis can also help you develop management strategies for these external threats.

What is a Business SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? This type of analysis is more than just a WHO.  All small businesses need to include a SWOT in their strategic planning. A Business SWOT Analysis is a key element of successful strategy development.

The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a Business SWOT Analysis is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. It also helps to first, identify and the, second, to minimize internal weaknesses and develop management strategies for external threats.

The most effective use of a Business SWOT analysis is within the planning process. But analysis and plans must be followed with actions. Develop your SWOT and build an action plan that includes who, what, where, when, why and how to deal with the strategies.

The best approach is to include members of your organization who are key, in the process of the creation of the Business SWOT Analysis. If you are a one-person business; then do it on your own or try to do it within your network of business acquaintances.

The Internal Organization: strengths and weaknesses. Ensure that you build on your strengths and manage and control your weaknesses.

External Factors:  The external environment (also known as the macroenvironment) is about the opportunities and the threats that the organization faces. These external factors are not controlled by the business, but we can manage to minimize threats and maximize opportunities. By managing the external environment’s impact on your business you can be successful.  A part of the external factors you must consider includes tracking economic indicators and then understanding how they impact your business and what you need to do about them.

To be successful you must first, understand, and then second identify your organization’s strengths and weaknesses and then finally, know what the opportunities and threats are in your industry. The Business SWOT analysis is used in your small business to give you an added advantage over your competitors.  You should update your Business SWOT Analysis on an annual basis since your business and your external environment is constantly changing and evolving.

If you want to learn more about what a SWOT analysis is watch this FREE VIDEO.What is a Business SWOT analysis (also known very simply as a SWOT) and why is doing one important to your business? This type of analysis is more than just a WHO.  All small businesses need to include a SWOT in their strategic planning. A Business SWOT Analysis is a key element of successful strategy development.

The definition of SWOT analysis is that it is an acronym for the strengths, and weaknesses of the internal organization and the opportunities and threats of the environment external to the organization. The importance of doing a Business SWOT Analysis is that it provides an opportunity for small business owners to identify and analyze the strengths of, and opportunities available to, the business. It also helps to first, identify and the, second, to minimize internal weaknesses and develop management strategies for external threats.

The most effective use of a Business SWOT analysis is within the planning process. But analysis and plans must be followed with actions. Develop your SWOT and build an action plan that includes who, what, where, when, why and how to deal with the strategies.

The best approach is to include members of your organization who are key, in the process of the creation of the Business SWOT Analysis. If you are a one-person business; then do it on your own or try to do it within your network of business acquaintances.

The Internal Organization: strengths and weaknesses. Ensure that you build on your strengths and manage and control your weaknesses.

External Factors:  The external environment (also known as the macroenvironment) is about the opportunities and the threats that the organization faces. These external factors are not controlled by the business, but we can manage to minimize threats and maximize opportunities. By managing the external environment’s impact on your business you can be successful.  A part of the external factors you must consider includes tracking economic indicators and then understanding how they impact your business and what you need to do about them.

To be successful you must first, understand, and then second identify your organization’s strengths and weaknesses and then finally, know what the opportunities and threats are in your industry. The Business SWOT analysis is used in your small business to give you an added advantage over your competitors.  You should update your Business SWOT Analysis on an annual basis since your business and your external environment is constantly changing and evolving.

If you want to learn more about what a SWOT analysis is watch this FREE VIDEO.

There are a myriad of uses for SWOT Analysis.  Uses for SWOT Analysis can include analyzing your entire company, it can be an analysis of a sector of your business, or even you own character.  An example of uses for SWOT Analysis could be as simple as how to make money online.  To determine if the way you have selected will be successful do a SWOT Analysis.  SWOT IS NOT A GUESSING GAME.

An example of uses for SWOT Analysis is blogging.  Everyone wants to make money online, and making money online through blogging is an up and coming trend.  Many of us jump into blogging without realizing the potential of blogging for money. Some people started a blog for fun or to network with friends, while others considered taking it to the next level as an opportunity for an internet business.

You can start a recreational blog then convert it into an internet business opportunity if you plan it right. There are many approaches you can take. By developing a SWOT Analysis it will help you determine if the business scenario that you are examining is viable.  Why do you need to perform a Blogging SWOT Analysis you ask?  First, you need to determine the type of competition and you ability to perform, i.e., develop the blog.  Second, you want to succeed in this internet business so you need to know your strengths, weakness, opportunities and threats!   One you begin to understand the SWOT factors, you would then perform a SWOT Analysis on blogging. An example of such a Blogging SWOT Analysis follows:-  

Strengths

1. Some knowledge in internet business
2. Able to apply SEO technique
3. Some SEM knowledge e.g. article directory, URL submission
4. Have written several articles
5. Some HTML programming knowledge
6. Understand SWOT Analysis template | matrix

Weaknesses

1. Tends to loose focus after a while
2. Weak in article structure to attract search engine
3. Least knowledge in traffic
4. No access to internet line
5. Run out of ideas what to write

Opportunities

1. Sharing of Internet knowledge is increased
2. Less competition with my topic of interest
3. Public WIFI is increasing
4. There are many free articles publishers

Threats

1. Competition is very great on popular topic
2. Webpage ranking is not guaranteed
3. Spamming
4. Duplicate content  

This basic SWOT Analysis of a blogging business is geared to show you one of the uses for SWOT Analysis.  Do not forget that you need to develop a Business Plan as well.  An analysis of using the SWOT and the Business Plan are your THIS.  Do not be swayed by the THAT’S who say these are not necessary for your business.  It is the successful entrepreneur who takes the advice of the experts and not their friends.

Learning SWOT and Business Plans is simple.  CLICK HERE to get your free information.