SWOT Analysis

Process of Conducting SWOT Analysis with Example

by Tabassum Nusrat Soti

Process of conducting SWOT Analysis is the fundamental path of any research work. It utilizes data from both internal and external factors to evaluate a business or project. Generally, a SWOT analysis comprises four main elements that can be classified into two distinct categories: internal and external factors. The methodology for conducting a SWOT Analysis is relatively straightforward. This article will explore the most effective way to run a SWOT Analysis using the traditional research methodology and the most commonly used SWOT table framework.

A Quick Overview

SWOT analysis refers to a business analytical framework that assesses the current condition of any organization on four scales. Strengths, Weaknesses, Opportunities, and Threats. These help the researcher (organization management) to understand their present state and prospect, then set feasible goals and objectives to improve.  Usually, project managers, CEOs, and researchers/developers use this particular framework. It gives a clear idea of the market, company abilities, and the economy around it.

Process of Conducting SWOT Analysis with Example

It is a five-tiered process. It uses real-time organization data, related industries, attested markets, and economic factors.

  • Set A Distinct Objective
  • Collect Data
  • Sort Data into Categories
  • Assess elements: Strengths, Weaknesses, Opportunities & Threats
  • Refine & Conclude

Set a Distinct Objective

Before conducting a SWOT analysis, it is crucial to identify the purpose of the analysis. It is essential to be specific about the objective of the SWOT analysis. Otherwise, the study may become overly broad, resulting in analysis paralysis during the evaluation process. A SWOT can be broad. However, more value will likely be gained if the analysis is directed toward an objective. For instance, a SWOT analysis might focus solely on whether or not to launch a new product.

Collect Data

The information required for the SWOT analysis is derived from internal and external resources, such as financial sources, market surveys and performance indicators, and competitors’ performance statistics. The directly collected data from individuals and groups are referred to as “primary data“, and all statements, reports, news, and reports are considered “secondary data”. Data analysis is the process of collecting and analyzing data derived from either primary or secondary sources.

Sort Data into Categories

Sorting is a common approach to visualizing SWOT research data in a format that facilitates a better understanding of the data’s narrative. Step 3 of SWOT research data sorting involves categorizing the data into four distinct categories: Strengths, Weaknesses, Opportunities, and Threats; Strengths and Weaknesses are related to internal issues within an organization or city; whereas Opportunities and Threats are external factors outside the organization or city which cannot be directly monitored. Internal and external data must be separated, time-documented, and logically arranged for practical evaluation. Spreadsheets can be used to track data and organize it into these four categories for finalization and further analysis.

Assess The Elements

Strengths

What are the strengths of your SWOT analysis? Strengths are the attributes within your organization that are essential to your project’s success and, ultimately, your business’s success.  Strengths can include all the resources and capabilities you have at your disposal to give you an edge over your competitors. Answering the following questions about your organization would give you a good idea of your strengths.

  • What are we good at?
  • What aspects of our business have our clients or partners praised?
  • What areas do we excel in compared to our rivals?
  • What distinguishes our company, its goods, or its services?
  • What resources (cash, capital, and intellectual property) do we possess?
  • Is it easy to spot and know?
  • Even if you don’t have many followers, is it popular with a specific group?
  • Then, think about how your process works – is it efficient and creative?
  • Do you have good communication between your marketing and sales teams?

Weaknesses

The term “weaknesses” refers to areas where an organization does not perform optimally. This section is not about focusing on negative aspects; it is essential to anticipate any potential barriers that could impede your progress. When determining weaknesses, focus on areas of your business that are least profitable, areas where you lack specific resources, or areas that cost you the most in time and money. Input from employees across different departments is beneficial as they will likely identify weaknesses you may have yet to consider. You may want to ask yourself the following questions:

  • What can we change for the better?
  • What are our customers or partners complaining about?
  • How do our rivals perform better than us?
  • Where do we need to increase our expertise or resources?
  • what obstacles are preventing you from achieving your objectives?
  • What are your competitors offering that continues to challenge you?
  • What would stop customers from purchasing this product or engaging with my company?
  • What do you foresee as the biggest obstacle to my employees’ productivity or ability to complete the task effectively?

Opportunities

To effectively run a firm, taking advantage of the current situation is essential. Opportunities for you and your rivals are comparable, if not identical. Before the competition, you must identify them and take advantage of them. Determining opportunities can be accomplished by assessing the needs and problems of the environment, considering advice from various sources, coming up with a creative solution, and so on. Below you’ll find further details on appropriately conducting an opportunity analysis.

  • What emerging trends can we take advantage of?
  • Which of our strengths is valuable to potential partners?
  • What adjacent markets can we tap into?
  • Are there locations or spaces with less competition?
  • Can we share our stories or successes with the world?

Threats

Threats are external elements that can have a detrimental effect on a firm. Threats are something that both you and your rivals face, similar to opportunities. For instance, a particularly damaging PR crisis caused by a disgruntled consumer can be specific to an organization. It is crucial to understand ways to lessen these hazards and stop them from worsening in the future.

  • How can our weaknesses make us vulnerable?
  • What economic or political events could affect our business?
  • What market trends could become a problem?
  • Who are our competitors?
  • Are we in complete control of our supply chain and pricing?
  • Is payment behavior affecting our cash flow?
  • Have we had any bad press or media coverage we can’t control?
  • Could future tech, regulations, or environmental changes change how we do business?

Refine and conclude

Once each element has been identified with distinct data/concepts about the real-time risks, opportunities, strengths, and weaknesses, the next step is to refine the ideas to use for decision-making. Refining the ideas that the analysis participants have shared will allow the company to concentrate on the most attractive ideas or the most significant risks to the company.

This stage may involve a significant amount of discussion among the participants in the analysis and may require the involvement of senior management to help prioritize precedence. SWOT analysis allows decision-makers to evaluate a company’s standing in a competitive landscape and what measures are required for future strategic development, thus offering a road map for the company’s future.

Example of the Process of Conducting SWOT Analysis with Example – Coca-Cola

A Distinct Objective: understanding customer satisfaction rates and how to improve them.

Collect Data: customer feedback, reviews, and surveys—financial statements, quantitative and qualitative data, reports (internal, external sources), etc.

Sort Data into Categories: all sales, feedback, responses and review data are periodically aligned. All numeric data are sorted relevantly for further analysis.

Assess elements: (by answering the distinctive questions)

Strengths

  • Strong and recognized global brand
  • Extensive distribution network and global presence
  • Diverse product portfolio
  • Effective marketing and advertising strategies
  • Strong supplier and distribution relationships

Weaknesses

  • Dependence on carbonated drinks
  • Negative health perception and potential impact on demand
  • Limited product diversification

Opportunities

  • Growing demand for healthier beverages
  • Expansion into emerging markets
  • Innovation and product development

Threats

  • Intense competition from global and local beverage companies
  • Government regulations and taxes on sugar-sweetened beverages
  • Changing consumer preferences toward healthier and premium options

Refine & Conclude

They refined the data assessment by checking the facts in the market context. And mass production of more affordable and convenient size of packaging and the introduction of vegan and healthy diet-friendly products is their best play to induce customer satisfaction.

Bottom Line

After studying the process of conducting SWOT Analysis, we know that a crucial step in the process of strategic planning is the SWOT analysis. It is used to assess internal and external elements and pinpoint opportunities, dangers, strengths, and weaknesses. This knowledge can then inform the creation of strategies and strategic decisions. Individuals and organizations can align resources and set realistic goals by using their strengths and weaknesses, dealing with opportunities and challenges, and minimizing risks. Collaboration and inclusion and frequent updates and revisions to ensure flexibility and adaptation in the face of constantly changing situations all contribute to the SWOT analysis’s effectiveness.

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