SWOT
(Strengths, Weaknesses, Opportunities, Threats)
Helps you figure out what you're good at, where you're weak, what good things could happen, and what could go wrong, all in one place.
How to implement
Strengths
Identify your internal positive attributes, resources, and advantages that give you a competitive edge.
Weaknesses
Identify your internal limitations, disadvantages, or areas where you need to improve.
Opportunities
Identify external trends, factors, or situations in the environment 1 that you could potentially leverage for your benefit.
Threats
Identify external factors, challenges, or risks in the environment that could potentially harm your progress or success.
Example
Let’s conduct a SWOT analysis for a planned launch of a new eco-friendly cleaning product line:
Strengths:
We have a strong existing brand reputation for quality and a loyal customer base. Our research and development team has formulated a highly effective and truly eco-friendly product.
Weaknesses:
Our production costs are slightly higher than competitors, which might impact our initial pricing strategy. We also have limited experience in the eco-friendly cleaning product market specifically.
Opportunities:
There’s a growing consumer demand for sustainable and environmentally friendly cleaning products. Competitors in this niche often have higher price points, leaving room for us to offer a premium yet reasonably priced option.
Threats:
Major established cleaning product brands might launch their own eco-friendly lines, increasing competition. Fluctuations in the cost of raw, sustainable materials could impact our profit margins.