What is the SWOT Analysis Matrix and how to do it? Practical Example for Company
first thing you need to know before doing an analysis of the SWOT matrix is: That this will be the ABC that will govern your company. That is why the whole company should know it as the Our Father, the Catholics. Otherwise there is no point in doing so.
This business strategy must have a clear and simple foundation, so that all employees of the company can implement it from the very first minute, speaking clearly, from the very first moment they step into the office.
This matrix is almost as important for an employer as it is for a worker to know how to make a resume.
The SWOT analysis matrix, also known as SWOT or DOFA, comes from the Spanish acronym for the words Weaknesses, Threats, Strengths and Opportunities.
And it is nothing else than to write these points down on paper first, and then transmit them to the workers of your company in a clear and graphic way.
The purpose of this is to capture and identify the company’s strengths and weaknesses. The results of this analysis will allow us to have a clear diagnosis of the current situation of the company, and will help us make decisions based on the marketing strategy that suits us best and that we want to follow.
Always based on the SWOT Analysis matrix.
Table of Contents
How is the SWOT Analysis Matrix of a Company done?
Although it may seem a priori complicated, the reality is that it is an extremely easy task. There are only three fundamental steps to take to start creating your own analysis matrix. The steps consist of:
Internal Analysis | Strengths and Weaknesses of the Company
At this point the company should focus on identifying the strengths and weaknesses that can be positive to differentiate itself from the competition. Many times we believe that either all is right or all is wrong within a company. The truth is that it is not so. In all companies, there is a good and a bad part. Depending on where the balance sheet is tilted, the company will be profitable, or not.
That is why it is just as important to highlight the good things to keep doing them the same or better, as it is to detect the bad things to correct them. These factors need to be taken into account in order to complete our SWOT matrix analysis:
The Production. Production capacity, costs, reinvestment and depreciation.
Marketing Campaigns. Our product, image improvement, where we want to position ourselves, market share, ROI, advertising, online marketing, etc..
Optimize Company. Structure, backbone of the company or horizontal.
Financing. Money to credits, debt restructuring, self-financing with profits, etc.
External Analysis | Threats and Opportunities
In the second part of the SWOT matrix analysis you will have to be able to detect possible threats to your company.
On the other side of the coin you will also have to look at possible niches and opportunities.
To achieve this you will have to take the following factors into account:
Market. You have to define the target you are targeting. Size and market segment, evolution of demand, consumer desires.
Sector. Try to foresee the trends in your sector, go ahead and be the first to reach them. He who strikes first, strikes twice.
Competition. Watch the competition and try to differentiate yourself from it. You can be inspired by what they do well, but always try to give your focus. Make your brand stand out.
Environment. Seek to control everything, even your environment. Although this is the most difficult point, since it does not depend on you, but on third parties, great professionals manage to get ahead of people’s movements to succeed. The main factors of this point are: economic, political, legal, sociological, technological, etc.
Define your Strategy | Make the SWOT Matrix
The SWOT or SWOTMatrix will help us to realize our weaknesses and threats, and will give us a clear vision of our strengths and opportunities. It’s up to us to take advantage of it, or not.
To face this dilemma, there are several strategies that I will detail below and allow you to choose the one that best suits your company’s situation.
After you have set your objectives, both short and long term; measured, quantified and real. It’s time to move on to examples that you can implement in your company:
Example of SWOT or SWOT Matrix
Examples of SWOT Analysis Matrix (SWOT) for Companies
Let’s review possible strategies with examples:
1 SWOT Defensive Strategy:
It is when the company fully anticipates the threats and manages to anticipate and protect itself from them. If your product is not the first in your sector, try to have something that is different and characterizes it. If you do this, when there is less market share in your sector, customers will remember you for differentiation.
2 SWOT Offensive Strategy:
The company has to focus on expanding and growing. Most likely customers will detect your strengths, which will make you stand out. Now is the time to promote your services above your competition, highlighting your strengths (Example: 95% of the market prefers our services).
When your product stagnates, look for another new product to repeat the growth curve, and keep the previous product as long as possible on the leverage curve, when it decreases, lower the price, sell it as a promotion, and take out the new product.
3 SWOT Survival Strategy:
This option is optimal when you are faced with external factors, but you do not have the internal capacity to deal with them (economic, capacity, personnel, etc.). Try to get through most of the storm before you move and lose your resources in the first onslaught.
It is time to reduce costs as much as possible and seek self-financing without incurring credits. Once the bad streak is over and you start selling again, it’s time to invest the resources you have left in your project.
4 SWOT Reorientation Strategy:
When opportunities pass before you but for lack of training or information you do not see them coming, and you miss the train. You need to take stock and set goals that you can meet. If it’s because of lack of training, look for courses to learn about the subject you think you could be making money from, but don’t manage perfectly.
Remember that once you do well, many competitors will come out, and you need to be trained to take advantage of any advantage on the field.
What is Personal SWOT Analysis (SWOT)?
The personal SWOT analysis is, as in a company, a strategy that will help you to find your strengths and weaknesses. Personal SWOT analysis is linked to personal self-realization and the well-being of people.
Therefore, you need to apply all of the above to the more emotional (and rational) aspects of your being.
The purpose of SWOT analysis is to get to know yourself personally, and to determine where you want to see yourself in the future (both in the short and long term). By means of the achievement and analysis of the variables indicated above (in the companies). You must set yourself short and long term goals, which you must fulfill until you reach the final goal (self-realization). The study of this subject in recent years has been carried out by coaching professionals (the real ones).
In short, The Personal SWOT Matrix is nothing more than applying all of the above to a person’s personal environments. Both in the short and long term.
This SWOT matrix can really help you to organize your life, detecting your strengths and weaknesses, and emphasizing the negative and positive aspects, which you improve and empower yourself.
What is the SWOT Analysis Matrix and how to do it? Practical Example for Company5 (100%) 44 votesDani ColladaGrowth
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