How to perform a SWOT Analysis

In this article we will explain in a simple way how a SWOT analysis should be developed in a company.

1.- Create a matrix of four boxes, with a box that represents one of each of the categories of the SWOT analysis - strengths, weaknesses, opportunities and threats.

2.- Hold a brainstorming meeting with other strategic planners and spend 10-15 minutes creating ideas to put in each category.

3.- Observe the results of the brainstorming and write two or three things that represent the most important ideas in each category. For example, a good brand, customer relationships, intellectual property rights, and access to the supply chain are great strengths. If the company is deficient in any of these areas, these strengths could turn out to be major weaknesses. Opportunities often include things like new customer niches that can be take advantage of, new products and technologies, or new laws that are beneficial for the business. Threats can be unfavorable technologies, a close substitute for your product or service, unfavorable policies, or bad publicity.

4.- In the following brainstorming, you should make the most of the time to improve each of these important areas. For each of the strengths (strengths), we think or ask ourselves the following question: “How can we make the strengths be even stronger? " For weaknesses, we have to try to find ways to reduce defects, or turn weaknesses into strengths. For opportunities, we have to think about how the opportunities can be taken advantage of and turn them into strengths. Lastly, think of ways to eliminate threats, or turn them into opportunities. It is best to use people from different departments, such as finance, human resources and marketing, the legal area. The more diverse the range of professionals who attend meetings, the more valuable brainstorming. Experts in each area will also know better how to implement plans to take advantage of the SWOT results.

5.- Finally we can conclude that the results of the SWOT session should be used to guide the strategic decisions of the company. Over time the SWOT results change as the business environment changes, so it can be helpful to hold new brainstorming sessions on a regular basis.