Almost every business includes a SWOT analysis template tool in a standard set of company essential analysis tools. It is one of the best tools that is used for multiple reasons in almost all types of businesses.
Usually, every business considers it as a specific tool for their business. However, it fits best for each business to perform a set of analyses. Moreover, the outcomes of SWOT analysis provides such useful information that it can decide about the growth and survival of a business.
In this article, a brief introduction to the SWOT analysis template will be provided. Also, the important, applications, and steps to conduct the analysis will be explained. You may also like Gap Analysis Template.
SWOT is an acronym of strengths, weaknesses, opportunities, and threats. So, it is used in projects and businesses to find out the strengths, weaknesses, opportunities, and threats.
The application of this analysis can be seen at different stages at a different level of a company. However, the most common use of SWOT analysis is in the gap analysis that assesses, plans, and bridges the gap between the current and desired state of a business.
The project managers and entrepreneurs add the SWOT analysis tool in the starter pack kit. So, the feasibility of a business model or project can be assessed before heading towards the implementation. Moreover, it evaluates the business or project and nullifies the likelihood of failure. You should also check the Maintenance Checklist Template.
Components of SWOT Analysis Template
As discussed earlier, the SWOT analysis template is a collection of 4 dimensions of a business. These involve the internal as well as the external analyzation. Let briefly discuss each of the factors.
Strengths: Strengths are the positive attributes of a business that takes part in the growth and success. It is an internal factor that assesses the plus points of a business over its competitors.
Managers can brainstorm to enlist the core competencies of a project or business. It can include both tangible and intangible factors that directly or indirectly take part in business wellbeing. You may also see Business Memo Template.
For example, a good technical team, brand loyalty, a unique selling strategy, and a technological advantage over the competitor can be referred to as the strengths of a business.
Weaknesses: Weaknesses are also the internal factors of a business. These are the negative attributes of a business that requires immediate attention and action.
A weakness is any factor of a business that pushes the business toward a decline or a project towards failure.
For example, a shortage of resources, unavailability of the funds, technological deficiency, and clashes between the teams.
Opportunities: Opportunities are the favorable conditions that take part in the growth and success of a business. Market analysis strategies are useful to find opportunities for business growth.
For example, business interest events, technological up-gradation, brand loyalty, and positive changes.
Threats: Threats are the external factors that aren’t in the control of businesses. A business can only plan as best as possible to minimize the impact. Therefore, in projects and businesses, risk management approach is used for identification, assessment, and mitigation of the risks.
For example, unstable political situation, financial instability, rapidly changing technology, and anything that can jeopardize the success.