SWOT analysis is a potent tool for companies that know how to use it. Focused on discovering your company’s strengths, weaknesses, opportunities, and threats, it can work well to gain awareness.
With this content, we will highlight the 5 most significant benefits of the SWOT analysis:
1st: Know your challenges
Understanding the gaps of your business is empowering. By identifying and starting to work on them, you will be able to steer both your team and your company toward better results.
2nd: Establish new goals
From the SWOT analysis, it is possible to have a clearer view of the positioning of the business and, consequently, to establish new goals that are in accordance with this position. This is essential for the current, and subsequent years.
3rd: Deter possible threats
Just as unidentified weaknesses can affect your business, so can threats. It’s time to use the SWOT tool to forecast and understand your threats and eliminate them. A “Kill the Company” exercise can usually produce some very interesting ideas of how to head off incoming competitors and changes in the market.
4th: Use the opportunities in your favor
Just as we can use the threats to our advantage, we can also use the opportunities. Understanding the opportunities of your business can help you establish medium and long-term goals that are based on a thorough analysis of the current scenario.
Bonus: what is not that good in a SWOT analysis
It’s not all flowers when we talk about SWOT analysis, because it also has its flaws. Therefore, be attentive to:
- It doesn’t offer solutions – you need to find them on your own;
- It can help you to generate ideas, but doesn’t show you which one is the best;
- Not all information provided is useful;
- You can’t control all factors in SWOT analysis (such as opportunities and threats)