What Is a SWOT Analysis (And What Are Its Benefits)?
"SWOT" is a fancy abbreviation for a method that takes a closer examination of your company's as well as your brand's strengths, weaknesses, threats, and opportunities. You're likely aware of the various aspects of however breaking this information into manageable points will give you a fresh view.
Through an extensive SWOT analysis, you will be able to gain valuable insights like:
Which business opportunities are ready to be capitalized on?
What aspects of your business require an overhaul?
Which competitor represents the greatest threat to your business?
This technique can be applied to specific areas of your company - for example, developing your strategy for marketing or your products or even to your brand in general. In either case, in order to make the most of a SWOT assessment, you must dig deeper. If you concentrate on the superficial issues, or do not involve those who are relevant to the process, you'll not benefit from it.
How to Conduct a SWOT Analysis of Your Brand (In 4 Steps)
Step 1: Break Down Your Strengths
Every company has at least one aspect that gives it an advantage over its competition regardless of how small it may be. Knowing the advantages is essential to be in a position to take advantage of opportunities when the moment is the right time.
It's crucial to ensure that the strengths you recognize will be unique to the business and not areas that your competitors are also successful in. Also, don't forget to take into account other factors such as the availability of resources and efficient and efficient methods.
To show how SWOT analysis works in practice, we'll focus on an actual business case that is Netflix. It's the biggest streaming company online however it doesn't mean that the business does not have weaknesses or aren't in danger.
The strengths of Netflix include:
Advantage of the first mover over streaming competitors
Huge swaths of information about the content and services its users love
The capability to create content in a rapid manner and other streaming platforms haven't been able to compete.
Worldwide availability
Great brand recognition
Step 2: Lay Out Your Weaknesses
Identifying your brand's weaknesses isn't an exercise in self-doubt. What it ought to serve as is research of self-reflection, which allows you to identify the ways in which your company is at risk.
The areas you should be looking at are processes that are inefficient and other elements of your brand that could stop leads from becoming customers. Be honest about it, because not being honest will cause you to lose money over the long term.
In the present, Netflix commands a 19 percent share of the world streaming market. In the US the company is in the top spot with 87 % share. These two figures paint positive pictures, but as you get closer the flaws become evident like:
The company is burning through funds at a remarkably fast pace to keep their production going
It is having trouble renewing the licenses of key properties
The content library of the channel varies in quality, based of the area you're viewing from
It's not the only feasible option in the world of streaming
Its interface is subpar
Step 3: Define Your Opportunities
The initial two phases of a SWOT analysis are an exercise in reflection. Once you've got that information, you are able to begin to develop strategies around it, beginning with growth opportunities.
Opportunities may include the latest products and technologies. But, keep an eye out for new prospective customers and little advantages that you can capitalize on and increase as well as solutions to your shortcomings.
Looking at Netflix's strengths as well as its weaknesses, the possibilities for it include:
Making new movies and shows at a cost that competitors cannot compete with
Utilizing its vast database of information to produce highly-targeted content improve the satisfaction of its users
Make sure to redesign the interface of their library to make it easier to navigate the library and search for information
In areas that other streaming service providers don't have a presence yet to build their market share
Step 4: Consider Your Threats
Remember when we spoke about roadblocks at the start in this piece? In the context of a SWOT assessment, the roadblocks are referred to as "threats".
To identify your risks, you must pay careful consideration of your entire industry. The emergence of new competitors, the changing consumer behavior and trends as well as the viability of your procedures, and the development of new technologies are all aspects to take into consideration.
While Netflix is still in a good position but the company is in the midst of certain obvious risks, like:
New streaming services are constantly coming into the field
Other well-known players are beginning to invest huge amounts of cash into original content
Customers who don't like the idea of having to pay to pay for multiple services
There is a chance for stagnation if the company can't keep up with its prolific content creation
Conclusion
Every company has its own strengths and weaknesses. Knowing these is essential to take advantage of opportunities and analyze risks effectively. The more you understand your brand name, the better items and solutions you'll have the ability to offer.
The idea behind a SWOT analysis is straightforward and requires only four steps:
1. Find your strengths.
2. Write down your weak points.
3. Determine your options.
4. Think about your risks.
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