Building a swot analysis. What is a SWOT analysis for?

SWOT analysis is an intermediate link between the formulation of the mission of the enterprise and the definition of its goals and objectives. Everything happens

in this order (see figure 1):

1. You have determined the main direction of the development of the enterprise (its mission)

2. Then you weigh the company's strengths and assess the market situation to understand whether it can move in the indicated direction and how best to do it (SWOT analysis);

3. After that, you set goals for your enterprise, taking into account its real possibilities.

SWOT analysis helps to answer the following questions: - Are the company's weaknesses its vulnerabilities in competition and / or do they prevent it from taking advantage of certain favorable circumstances? What weaknesses require adjustment based on strategic considerations?

What opportunities give the company a real chance of success when using its skills and access to resources?

What threats should the manager be most concerned about and what strategic actions should he take to protect himself well?

So, after conducting a SWOT analysis, you will have a clearer idea of ​​the advantages and disadvantages of your enterprise, as well as the situation in the market. This will allow you to choose the best development path, avoid dangers and make the most of the resources at your disposal, while taking advantage of the opportunities provided by the market.

Even if you are sure that you are already well aware of everything, it is still better to conduct a SWOT analysis, since in this case it will help to structure the available information about the enterprise and the market and take a fresh look at the current situation and the prospects that are opening up.

In addition, the results of the analysis and the decisions made on its basis should be recorded and accumulated, because the accumulated structured experience (“knowledge base”) is the basis of the management value of any company.

Correctly and timely made strategic decisions today play a key role in the successful operation of the organization. Ultimately, it is they who have a decisive influence on the competitiveness of products and the enterprise as a whole.

Methodology for conducting a SWOT analysis

In general, conducting a SWOT analysis comes down to filling in the matrix shown

in Figure 2, the so-called "SWOT Analysis Matrix". In the corresponding cells of the matrix, it is necessary to enter strong and weaknesses enterprises, as well as market opportunities and threats.

Strengths enterprise - something in which it excels or some feature that provides additional opportunities. The strength may lie in the existing experience, access to unique resources, the availability of advanced technology and modern equipment, highly qualified personnel, high quality products, brand awareness, etc.

Weaknesses enterprise is the absence of something important for the functioning of the enterprise or something that the enterprise has not yet succeeded in comparison with other companies and puts it in an unfavorable position. As an example of weaknesses, one can cite a too narrow range of manufactured goods, a bad reputation of the company in the market, lack of funding, low level of service, etc.

Market Opportunities-- these are favorable circumstances that the company can use to gain an advantage. As an example of market opportunities, one can cite the deterioration of the positions of competitors, a sharp increase in demand, the emergence of new production technologies, an increase in the level of income of the population, etc. It should be noted that the opportunities from the point of view of SWOT analysis are not all the opportunities that exist on the market, but only those that can be used by the enterprise.

Market Threats- events, the occurrence of which may have an adverse effect on the enterprise. Examples of market threats: new competitors entering the market, tax increases, changing consumer tastes, declining birth rates, etc.

It should be noted that the same factor for different enterprises can be both a threat and an opportunity. For example, for a store that sells expensive products, the growth of household income may be an opportunity, as it will lead to an increase in the number of customers. At the same time, for a discounter store, the same factor can become a threat, as its customers with rising wages can move to competitors offering more high level service.

SWOT analysis should be carried out with the participation of all the most important members of this organization. This concerns the general identification of weaknesses and strengths, which should be clearly visible within the organization. However, this analysis should be as broad as possible. The most difficult thing is to determine the weaknesses of the organization, which may later appear in the attacks of competing organizations. Members of the organization speak about them rather reluctantly.

SWOT analysis can be performed using brainstorming techniques. However, if the task is to evaluate the leadership of the organization, this technique will be ineffective, since members of the organization may be afraid to express their real views in the presence of others. It follows that it is also necessary to apply other techniques that ensure the anonymity of specific authors of the analysis. To this end, it is possible, first of all, to collect the analysis performed by each member of the organization, and then submit the results of a general verification and discussion. Each of the points in all four directions of analysis can be evaluated by ordinary members of the organization according to the scheme: "yes", "no", must be corrected (how?).

The quality of the analysis can be improved by involving people outside the organization in its conduct. True, they can only perform auxiliary functions, since they do not know the organization enough to independently distinguish between its weak and strengths. However, due to the fact that they are not involved in the internal “layouts” of the organization, such persons can act as impartial arbitrators who are able to evaluate proposals, and also, by posing specific questions, provoke the organization to a more thorough rethinking of its positions and actions. Of course, these persons must enjoy the indisputable trust of the members of the organization, because during the analysis, facts may be discovered that can be very dangerous to publicize.

When conducting a SWOT analysis, and in particular an analysis of chances and threats, previously conducted public opinion surveys should be used. Associating an organization with a specific problem, issue, attributing competence to it in any area can be a good chance for it. However, from an organization's point of view, assessing certain actions as highly unpopular can be a significant threat. Public opinion surveys can also confirm the conclusions of the analysis regarding weaknesses and strengths. Even if the organization has a strong leader, but this person is very unpopular in society, it is difficult to attribute his presence to the strengths of the organization. It may turn out that such a leader leads the organization very well (and in this sense this is a strong point), but it is his low popularity that is a threat to the organization.

Step 1. Determining the strengths and weaknesses of the enterprise

The first step in a SWOT analysis is to assess your own strengths. The first stage allows you to determine what are the strengths and weaknesses of the enterprise.

In order to determine the strengths and weaknesses of the enterprise, you need to:

1. Make a list of parameters by which the enterprise will be evaluated;

2. For each parameter, determine what is strong point enterprises, and what - weak;

3. From the entire list, select the most important strengths and weaknesses of the enterprise and enter them into the SWOT analysis matrix (Figure 2).

Let's illustrate this technique with an example.

To assess the enterprise, you can use the following list of parameters:

1. Organization (here the level of qualification of employees, their interest in the development of the enterprise, the presence of interaction between departments of the enterprise, etc. can be assessed)

2. Production (production capacity, quality and wear and tear of equipment, quality of manufactured goods, availability of patents and licenses (if necessary), production cost, reliability of supply channels for raw materials and materials, etc.) can be assessed.

3. Finance (production costs, availability of capital, capital turnover rate, financial stability of your enterprise, profitability of your business, etc. can be estimated)

4. Innovation (here, the frequency of introducing new products and services at the enterprise, the degree of their novelty (minor or cardinal changes), the payback period for funds invested in the development of new products, etc. can be assessed)

5. Marketing (here you can evaluate the quality of goods / services (how this quality is assessed by consumers), brand awareness, completeness of the range, price level, advertising effectiveness, enterprise reputation, the effectiveness of the sales model used, the range of additional services offered, the qualifications of the attendants).

Next, you should fill in table 1. This is done as follows: the first column contains the evaluation parameter, and the second and third columns contain the strengths and weaknesses of the enterprise that exist in this area. Table 1 provides some examples of strengths and weaknesses in the Organization and Production dimensions.

Table 1. Determining the strengths and weaknesses of your enterprise

After that, from the entire list of strengths and weaknesses of the enterprise, it is necessary to select the most important (the strongest and weakest aspects) and write them down in the appropriate cells of the SWOT analysis matrix (Figure 2). Optimally, if you can limit yourself to 5-10 strengths and the same number of weaknesses, so as not to experience difficulties in further analysis.

For the strategic perspective of the company, strengths are especially significant, since they are the cornerstones of the strategy and the achievement of competitive advantages should be built on them. In the same time good strategy requires intervention in weaknesses. The organizational strategy should be well tailored to what needs to be done. Of particular importance is the identification of the distinctive advantages of the company. This is important for strategy development because:

Unique opportunities give the firm a chance to take advantage of favorable market conditions,

Create competitive advantages on the market,

Potentially can be the cornerstones of the strategy.

Step 2. Identify market opportunities and threats

The second step of the SWOT analysis is a kind of "reconnaissance" - market assessment. This stage allows you to assess the situation outside your enterprise and understand what opportunities you have, as well as what threats you should be aware of (and, accordingly, prepare for them in advance).

The methodology for determining market opportunities and threats is almost identical to the methodology for determining the strengths and weaknesses of an enterprise:

1. A list of parameters is compiled, according to which the market situation will be assessed;

2. For each parameter, it is determined what is an opportunity, and what is a threat to the enterprise;

3. From the entire list, the most important opportunities and threats are selected and entered into the SWOT analysis matrix.

Consider an example.

The following list of parameters can be taken as a basis for assessing market opportunities and threats:

1. Demand factors (here it is advisable to take into account the market capacity, the rate of its growth or contraction, the structure of demand for the company's products, etc.)

2. Factors of competition(one should take into account the number of main competitors, the presence of substitute goods on the market, the height of barriers to entry and exit from the market, the distribution of market shares among the main market participants, etc.)

3. Sales factors (it is necessary to pay attention to the number of intermediaries, the availability of distribution networks, the conditions for the supply of materials and components, etc.)

4. Economic factors (taking into account the exchange rate of the ruble (dollar, euro), inflation rate, changes in the level of income of the population, tax policy of the state, etc.)

5. Political and legal factors(the level of political stability in the country, the level of legal literacy of the population, the level of law-abidingness, the level of corruption in power, etc.) are assessed.

6. Scientific and technical factors(usually takes into account the level of development of science, the degree of introduction of innovations (new products, technologies) in industrial production, the level of state support for the development of science, etc.)

7. Socio-demographic factors(you should take into account the size and age and sex structure of the population of the region in which the enterprise operates, the birth and death rates, the level of employment, etc.)

8. Socio-cultural factors(traditions and the system of values ​​of society, the existing culture of consumption of goods and services, existing stereotypes of people's behavior, etc. are usually taken into account.)

9. Natural and environmental factors(taken into account climate zone in which the enterprise operates, state environment, public attitude towards environmental protection, etc.)

10. And, finally, international factors (among them, the level of stability in the world, the presence of local conflicts, etc. are taken into account)

Further, as in the first case, the table is filled in (Table 2): the first column contains the evaluation parameter, and the second and third columns contain the existing opportunities and threats associated with this parameter. The table provides examples to help you understand how to list the opportunities and threats in your business.

Table 2. Identifying Market Opportunities and Threats

After filling in Table 2, as in the first case, it is necessary to select the most important ones from the entire list of opportunities and threats. To do this, each opportunity (or threat) needs to be assessed on two dimensions, asking two questions: “How likely is it that this will happen?” and “How might this affect the business?”. Those events are selected that will occur with a high degree of probability and will have a noticeable impact on the business. These 5-10 opportunities and approximately the same number of threats are entered into the corresponding cells of the SWOT analysis matrix (Figure 2).

Step 3. Comparison of the strengths and weaknesses of the enterprise with the opportunities and threats of the market

Matching strengths and weaknesses with market opportunities and threats allows you to answer the following questions regarding further development business:

1. How can you take advantage of emerging opportunities using the strengths of the enterprise?

2. What weaknesses of the enterprise can interfere with this?

3. What strengths can be used to neutralize existing threats?

4. What threats, exacerbated by the weaknesses of the enterprise, should be most feared?

To compare the capabilities of an enterprise with market conditions, a SWOT matrix is ​​used, which has the following form (Fig. 3). On the left, two sections are distinguished (strengths and weaknesses), in which, accordingly, all the strengths and weaknesses of the organization identified at the first stage of the analysis are entered. At the top of the matrix, there are also two sections (opportunities and threats), in which all identified opportunities and threats are entered.

At the intersection of sections, four fields are formed: "SIV" (strength and opportunities); "SIS" (force and threats); "SLV" (weakness and opportunity); "SLU" (weakness and threats). In each of these fields, the researcher must consider all possible pair combinations and highlight those that should be taken into account when developing an organization's behavior strategy. For those couples that have been selected from the "SIV" field, a strategy should be developed to use the strengths of the organization in order to get a return on the opportunities that have appeared in the external environment. For those couples who find themselves in the “SLV” field, the strategy should be built in such a way that, due to the opportunities that have appeared, they try to overcome the weaknesses in the organization. If the couple is on the SIS field, then the strategy should involve the use of the strength of the organization to eliminate threats. Finally, for couples in the SLU field, the organization must develop a strategy that would allow it to both get rid of weaknesses and try to prevent the threat looming over it.

For the successful application of the SWOT methodology, it is important to be able not only to uncover threats and opportunities, but also to try to evaluate them in terms of how important it is for the organization to take into account each of the identified threats and opportunities in the strategy of its behavior.

To assess the opportunities, the method of positioning each specific opportunity on the opportunity matrix is ​​used (Fig. 4).

This matrix is ​​constructed as follows: from above, the degree of influence of the opportunity on the organization's activities (strong, moderate, small) is postponed; on the side is the probability that the organization will be able to seize the opportunity (high, medium and low). The ten fields of possibilities received inside the matrix have different meaning for the organization. Opportunities that fall into the fields "BC", "VU" and "SS" are of great importance for the organization, and they must be used. Opportunities falling on the fields "SM", "NU" and "NM" practically do not deserve attention. With regard to the opportunities that have fallen into the remaining fields, management must make a positive decision on their use if the organization has enough resources.

Rice. 3. SWOT matrix

Example:

Microsoft SWOT analysis.

	I. Creation of new software II. Price drop III. Entering other markets	I. Antimonopoly policy II. Competition III. Decrease in demand
1. Reputation in the market 2. Large market share 3. Good staff 4. Secret technologies	I.- 3,4 II.- 2,4 III.- 1,4,5	I.- 2 II.-3,4 III.-4,5
1. Unfinished products 2. Low salary 3. Monopoly	I.- 1 II.- 1,3 III.- 2	I.- 3 II.- 1,2 III.- 1

A similar matrix is ​​compiled for threat assessments (Fig. 5) . Those threats that fall on the "VR", "VC" and "SR" fields pose a very great danger to the organization and require immediate and mandatory elimination. Threats that have fallen into the "BT", "SK" and "NR" fields should also be in the field of view of senior management and be eliminated as a matter of priority. As for the threats that are on the fields of "NK", "ST" and "VL", a careful and responsible approach to their elimination is required here.

Rice. 4. Opportunity Matrix

Rice. 5. Threat Matrix

The threats that have fallen into the remaining fields should also not fall out of sight of the organization's management, their development should also be carefully monitored, although the task of eliminating them as a priority is not set.

As for the specific content of the considered matrices, it is recommended to carry out the identification of opportunities and threats in three directions: market, product and activities for the sale of products in target markets (pricing, distribution and promotion of products). The source of opportunities and threats may be consumers, competitors, changes in macro-environment factors, for example, the legislative framework, customs policy. It is advisable to conduct this analysis by answering the following questions in relation to opportunities and threats in three areas:

1. The nature of the opportunity (threat) and the reason for its occurrence.

2. How long will it exist?

3. What power does she have?

4. How valuable (dangerous) is it?

5. What is the extent of its influence?

To analyze the environment, the method of compiling its profile can also be applied. This method it is convenient to use for compiling a profile separately of the macro-environment, the immediate environment and the internal environment. With the help of the method of compiling a profile of the environment, it is possible to assess the relative importance for the organization of individual environmental factors.

Any head of an enterprise should know the strengths and weaknesses of a SWOT analysis, because he should be ready for unexpected and not always pleasant surprises, respond quickly and clearly to them. For these purposes, the SWOT analysis technology is provided.

Knowing the strengths and weaknesses of SWOT analysis, through the use of marketing research of this kind in practice, an entrepreneur will always be able to find the best solution in any situation.

SWOT analysis, general concept

The concept of "SWOT" is borrowed from in English and in fact is an abbreviation of English words:

• S - Strengths (forces) - talking about the strengths and advantages of the enterprise;
• W - Weaknesses (weaknesses) - shortcomings, weaknesses;
• О - Opportunities (favorable opportunities) - refers to opportunities from the outside, due to which, in the event of favorable conditions, it is likely to create additional advantages in the company's activities;
• T - Threats (threats) - circumstances that have the ability to harm the organization.

By conducting a SWOT analysis of the strengths and weaknesses of the enterprise, it is possible to clearly clarify whether the company (even) uses internal strengths to the fullest, and also identifies positions that can become strong, those that need to be corrected, etc.

What is a SWOT analysis for?

A standard SWOT study aims to analyze the strengths and weaknesses of the enterprise, risk assessment (including) and best opportunities. It is important not only to obtain information of interest, but also to compare the results of the study with the indicators of the most important competing firms.

The conducted SWOT analysis allows you to answer important questions, namely:

1. Does the firm use personal strengths in full.
2. What hallmarks in the implementation of its own strategy has an enterprise.
3. Are there weaknesses and how should they be corrected?
4. What opportunities are most likely to lead to success.
5. What are the likely threats that the manager should deal with seriously. specifics of the actions taken in this case.

The most optimal time for a SWOT analysis is the period when the direction is being formulated, in accordance with which further business development is planned.

What are the rules to follow when conducting a SWOT analysis?

When performing a SWOT analysis of the strengths and weaknesses of an enterprise, it is important to adhere to known rules.

1. The research vector should be clearly specified. When analyzing the entire business as a whole, the results will be very generalized and completely useless. Therefore, it is recommended to conduct a SWOT analysis in specific areas.
2. All concepts of SWOT analysis should be clearly understood.
3. Evaluation from the position of the market. In carrying out the analysis, it is necessary to apply the strengths and weaknesses in the state in which they appear to competitors and consumers. After all, strengths will be such only if they are so visible from the market position.
4. Put objectivity first. The input information must be versatile. Research should not be done by just one person. The possibility of deep analysis is allowed only in the case when the assessment will be given by the group.
5. The wording must be clear. Do not allow lengthy and ambiguous phrases. The result depends on their accuracy.

How SWOT analysis works

The principle of operation of SWOT analysis is simple and comes down to a certain scheme.

The first is the designation of strengths and weaknesses by experts. These characteristics are internal.

Here there is a designation of strong and weak elements characteristic of the company. In many ways, it depends on the literacy of drawing up a long-term plan.

To draw up an expert opinion, it is enough to arrange a survey for the management of the enterprise.

The assessment of strengths and weaknesses should be carried out in at least three different areas:

Carrying out the analysis of internal factors, it is possible to apply such a model. Rate vectors:

• How does the company's marketing activities respond to external environments?
• degree of adequacy to the marketing channel of the sales system;
• whether the organization of production processes corresponds to the adequacy of the manufactured products of the market;
• how logistics processes are organized and whether they are adequate to the marketing channel;
• to what extent the financial position of the company corresponds to its tasks;
• whether the administrative system corresponds to the quality of business process administration.

The second is a description of opportunities and threats.

This includes external factors, situations that are formed outside the company, the business environment of the company.

Threats are usually the same. They are:

1. Analysis of the strong weaknesses of the enterprise, assessment of opportunities and threats depending on the degree of impact on the company.
2. A SWOT matrix is ​​compiled, where all information is summarized in the form of tables.
3. The impact of factors is analyzed.
4. After compiling a description and conducting a marketing analysis, a strategy is determined, which is based on the results of the descriptions proposed above, using strengths and compensating for shortcomings.

SWOT matrix

All information received is entered into a special table consisting of 4 fields. Such a table is called the SWOT Analysis Matrix.

How to analyze the effect of factors

In accordance with the information received, an analysis is made and a conclusion is made as to how the "strengths" of the enterprise are able to realize the company's capabilities in achieving certain planned goals.

The SWOT analysis matrix after filling in the required data will look something like this:

Strategy MatrixSWOT analysis

In conclusion, a matrix of SWOT strategies is drawn up. This, in fact, is what it was all about.

All the data obtained as a result of the SWOT analysis is used to develop certain areas of the strategy, according to which the subsequent work will be based.

As a rule, the organization carries out work in several directions at once, namely:

• implementation of strengths;
• correction of weaknesses;
• taking measures to compensate for threats.

Based on the results of the analysis of tabular data, a matrix of measures is compiled to correct the shortcomings in the company's activities. All information is recorded in one table, represented by four fields:

After analyzing all the information presented in the table, a list of possible actions is compiled, the so-called "marketing plan".

Strengths and weaknesses of SWOT analysis

SWOT analysis of the strengths and weaknesses of the enterprise has both positive moments, as well as shortcomings.

StrengthsSWOT analysis:

• makes it possible to judge the strengths and weaknesses of the organization, as well as to initiate the likelihood of threats and opportunities;
• it is easy to use and quite effective;
• draws the relationship between the potential and problems of the company, compares strengths and weaknesses.
• analysis does not require extensive data;
• selects options in which the institution will adequately exist;
• helps to establish a promising direction for the development of the company;
• allows you to evaluate the profitability indicator and compare it with similar data from competitive organizations;
• forms the conditions for assessing the available resources of the institution;
• analyzing the strengths and weaknesses of the project, the management receives a warning about what problems may arise;
• at management team there is an opportunity to engage in the expansion and strengthening of competitive advantages;
• due to SWOT-analysis, there is a formation of a clearer picture of the position in the market;

SWOT analysis of the strengths and weaknesses of the enterprise helps to avoid troubles, dangers and choose the most favorable development path.

SWOT analysis and its weaknesses:

SWOT analysis is a simple tool aimed at providing information structuring. Such a procedure does not offer any specific answers, quantitative assessments or clear recommendations.

The role of such an analysis is to obtain an adequate assessment of the main factors and, with a certain percentage of probability, to predict the development of specific events. The analyst should make appropriate recommendations.

In addition, it only seems at first glance that the analysis procedure is simple. In fact, the objectivity of the result is determined by how complete and high-quality the information was provided.

To obtain data as close to reality as possible, it will be necessary to involve an expert who will assess the current state and determine the likely vector for further market development.

If errors were made when filling in the matrix table, then it is not possible to identify them during the analysis. Therefore, in the event that any extra factor is added, or, conversely, there has been a loss important element conclusions may be erroneous.

An analysis of the strengths and weaknesses of the enterprise, performed according to the SWOT analysis, allows the entrepreneur to choose the most correct direction for the development of his business. That is why, the organization and conduct of such a procedure must be approached extremely responsibly.

SWOT analysis. Part 1 - Strengths and Weaknesses

Strengths and weaknesses of the SWOT analysis: Helpful Tips for conducting

Situational, or SWOT (SWOT) analysis(the first letters of the English words strengths - strengths, weaknesses - weaknesses, opportunities - opportunities and threats - dangers, threats), can be carried out both for the organization as a whole and for individual types of business. Its results are further used in the development of and .

Analysis of strengths and weaknesses characterizes the study of the internal environment of the organization. The internal environment has several components, each of which includes a set of key processes and elements of the organization (types of business), the state of which together determines the potential and the opportunities that the organization has. The internal environment includes financial, production and personnel and organizational components.

Since it does not have a clear manifestation, its analysis on a formal basis is very difficult. Although, of course, one can try to expertly evaluate such factors as the presence of a mission that unites the activities of employees; the presence of certain common values; pride in your organization; a motivation system that is clearly linked to the results of the work of employees; psychological climate in the team, etc.

• S- strenghts - strengths;
• W- weaknesses - weaknesses;
• O- opportunities - opportunities;
• T- threats - dangers, threats;

SWOT analysis is an analysis of the strengths and weaknesses of the company, and an assessment of the opportunities and threats in the way of its development.

SWOT Analysis Methodology involves first identifying strengths and weaknesses, as well as threats and opportunities, and then establishing chains of links between them, which can later be used to formulate organizational strategies.

First, taking into account the specific situation in which the organization is located, a list of its weaknesses and strengths is compiled, as well as a list of threats (dangers) and opportunities.

Next, a connection is established between them. For this, a SWOT matrix is ​​compiled. On the left, there are two sections (strengths and weaknesses), in which, accordingly, all the strengths and weaknesses of the organization identified at the first stage of the analysis are entered. At the top of the matrix, there are also two sections (opportunities and threats), in which all identified opportunities and threats are entered.

SWOT matrix

SIV- Power and opportunity. A strategy should be developed to use the strengths of the organization in order to capitalize on opportunities. For those couples who ended up on the field SLV, the strategy should be built in such a way that, due to the emerging opportunities, try to overcome the weaknesses in the organization. SIOUX(Power and Threats) - develop a strategy that should use the strength of the organization to overcome threats. SLN(Weakness and threats) - develop a strategy that would allow the organization to get rid of weaknesses and prevent the impending threat.

For the successful application of the SWOT methodology, it is important to be able not only to uncover threats and opportunities, but also to try to evaluate them in terms of how important it is for the orientation to take into account each of the identified threats and opportunities in the strategy of its behavior.

To assess the opportunity, the method of positioning each specific opportunity on the opportunity matrix (Table 2.1) is used.

This matrix is ​​built as follows: the degree of influence of the opportunity on the organization's activities (strong, moderate, small) is postponed from above; on the side - the probability that the organization will take advantage of this opportunity (high, medium, low). Within the matrix, the ten opportunity fields have different meanings for the organization. Opportunities that fall into the fields "BC", "VU" and "SS" are of great importance for the organization, and they must be used. Opportunities falling on the fields "SM", "NU" and "NM" practically do not deserve attention. With regard to opportunities that fall into the remaining fields, management should make a positive decision on their use if the organization has sufficient resources.

Table 2.1 Capability Matrix

A similar matrix is ​​compiled for hazard assessment (Table 2.2). Those threats that fall on the "VR", "VK" and "SR" fields pose a very great danger to the organization and require immediate and mandatory elimination. Threats that have fallen into the "BT", "SK" and "NR" fields should also be in the field of view of senior management and be eliminated as a matter of priority. As for the threats that are on the fields of "NK", "ST" and "VL", a careful and responsible approach to their elimination is required here.

Table 2.2 Threat Matrix

It is advisable to conduct this analysis by answering the following questions in relation to opportunities and threats in three areas:

1. Determine the nature of the opportunity (threat) and the reason for its occurrence?
2. How long will it exist?
3. What power does she have?
4. How valuable (dangerous) is it?
5. What is the extent of its influence?

To analyze the environment, the method of compiling its profile can also be used. This method is convenient to use for compiling a profile of the macroenvironment, the immediate environment and the internal environment. Using the method of compiling a profile of the environment, it is possible to assess the relative importance for the organization of individual factors.

The environment profiling method is as follows. Separate environmental factors are written out in the environment profile table (Table 2.3). Each factor is given by expert way:

• assessment of its importance for the industry on a scale: 3 - strong importance, 2 - moderate importance, 1 - weak importance;
• assessment of its impact on the organization on a scale: 3 - strong, 2 - moderate, 1 - weak, 0 - no effect;
• assessment of the direction of influence on a scale: +1 - positive influence, -1 - negative influence.

Table 2.3 Environment Profile

Further, all three expert assessments are multiplied, and an integral assessment is obtained, showing the degree of importance of this factor for the organization. Based on this assessment, management can conclude which of the environmental factors are relatively more importance for their organization and, therefore, deserve the most serious attention, and which factors deserve less influence.

An excerpt from the book by ID Peter "A Practical Guide to Market Segmentation"

A3.1. Introduction

Any segmentation begins with a comprehensive study of the market situation in which the company operates, and an assessment of the types of opportunities and threats that it may face. The starting point for such an overview is the SWOT analysis, one of the most common types of analysis in marketing. Simply put, SWOT analysis allows you to identify and structure the strengths and weaknesses of the company, as well as potential opportunities and threats. This is achieved by the fact that managers must compare the internal strengths and weaknesses of their company with the opportunities that the market gives them. Based on the quality of compliance, a conclusion is made about the direction in which the organization should develop its business and, ultimately, the distribution of resources by segments is determined.

This chapter will look at the strengths, weaknesses, opportunities and threats in relation to the segments or markets being studied. Determining the relative importance of each of the listed SWOT components requires an extensive range of inputs. After studying this chapter, you will build a SWOT analysis for each of your segments.

Objects within each element (for example, strengths) will be ranked in order of importance: the most important strength will come first, then the second, and so on.

A3.2. Rules for conducting a SWOT analysis

The simplest form of presenting the results of a SWOT analysis is shown in fig. A3.1: list strengths, weaknesses, opportunities and threats. Due to its conceptual simplicity, SWOT has become easily applicable to managers and just as susceptible to misapplication. It does not require extensive databases or formal training. Anyone with even a little knowledge of the company and an understanding of the market can put together a simple SWOT. On the other hand, the inherent simplicity of analysis can lead to hasty and meaningless conclusions, full of such vague and ambiguous concepts as " operational characteristic product", " modern equipment”, “prices”. In addition, users sometimes forget about objectivity and rely on outdated or unreliable information.

Rice. A3.1. SWOT analysis

To avoid these mistakes and get the most out of your SWOT analysis, follow these simple rules.

Rule 1 Carefully define the scope of each SWOT analysis. Companies often spend general analysis covering their entire business. Most likely, it will be too general and useless for managers who are interested in opportunities in specific markets or segments. Focusing the SWOT analysis on, for example, a specific segment ensures that the strengths, weaknesses, opportunities, and threats that are most important to it are identified.

Rule 2 Understand the differences between SWOT elements: strengths, weaknesses, opportunities and threats. Strengths and weaknesses are internal features of the company, therefore, under its control. Opportunities and threats are related to the characteristics of the market environment and are not subject to the influence of the organization.

Rule 3 Strengths and weaknesses can only be considered as such if they are perceived as such by buyers. Only the most relevant strengths and weaknesses should be included in the analysis. Remember that they must be determined in the light of competitors' offerings. A strong side will only be strong when the market sees it as such. For example, the quality of a product will only be a strength if it performs better than competitors' products. And finally, there can be a lot of such strengths and weaknesses, so you won’t understand which of them are the main ones. To avoid this, strengths and weaknesses should be ranked according to their importance in the eyes of buyers.

Rule 4 Be objective and use versatile input information. Of course, it is not always possible to conduct an analysis based on the results of extensive marketing research, but, on the other hand, one cannot entrust it to one person, since it will not be as accurate and deep as an analysis carried out in the form of a group discussion and exchange of ideas. It is important to understand that a SWOT analysis is not just a listing of managers' suspicions. It should be based as much as possible on objective facts and research data.

Rule 5 Avoid long and ambiguous statements. Too often, SWOT analysis is weakened precisely because it includes such statements, which most likely mean nothing to most buyers. The more precise the formulations, the more useful the analysis will be. This is confirmed by Fig. A3.2. To note buyers will perceive as an ill-defined, meaningless statement. This element needs to be broken down into several components that are more significant from the point of view of the buyer: modern equipment ...

In a similar way, one can analyze other statements from Fig. A3.2. Some of the components received will be relevant to buyers, some will not. The bottom line is that you need to include only those that are perceived by the market and buyers as important.

Rice. A3.2. An example of a bad SWOT analysis

A3.3. Elements of the internal environment: strengths and weaknesses

Under the strengths and weaknesses can hide a wide variety of aspects of the company. The categories most frequently included in the analysis are listed below. Each SWOT is unique and may include one or two of them, or even all at once. Each element, depending on the perception of buyers, can be either a strength or a weakness.

• Marketing.
  Product
  Pricing
  Promotion
  Marketing Information/Intelligence
  Service/staff
  Distribution/Distributors
  Trade marks and positioning
• Engineering and development of new products. The closer the connection between marketing and technical department becomes, the more important these elements will be. For example, a strong relationship between the new product development team and the marketing department allows direct use feedback from buyers in the design of new products.
• Operational activity.
  Manufacturing/engineering
  Sales and marketing
  Processing orders/transactions
• Staff.
  Research and development
  Distributors
  Marketing
  Sales
  After-sales service/service
  Service/customer service

This includes the skills wage and bonuses, training and development, motivation, working conditions of people, staff turnover. All of these elements are central to the successful implementation of a customer-focused marketing philosophy and marketing strategy.

• Management. Sensitive and often controversial, but sometimes requiring changes, management structures directly determine the success of the implementation of a marketing strategy. Such aspects should be reflected in the analysis.
• Company resources. Resources determine the availability of people and finance, and thus affect the company's ability to capitalize on specific opportunities.

A3.4. Elements of the external environment: opportunities and threats

Opportunities and threats are outside the organization's control. Thus, they can be considered as external, related to the elements of the market environment. The analysis of the environment, which should already be carried out by now (see analysis 2), can serve as an excellent Starting point for this part of the SWOT analysis. Key elements to consider include:

• legislative/regulatory/political forces. The actions of the authorities in the form of policy enforcement, as well as legislative and regulatory requirements that companies must comply with;
• social forces (culture). A company is directly affected when dissatisfied customers put pressure on organizations whose activities are perceived as unacceptable;
• technological forces. Technological abilities that help a company achieve its goals affect the products that are offered to customers and their response;
• economic situation. The influence of the general state of the economy, under the influence of which consumer demand and spending habits are formed;
• competition. The nature and extent of the competitive threat. The following points deserve special attention:

Intensity of competition
The threat of new competitors
Buyer needs in the market
Bargaining power of buyers, distributors, suppliers
Competitiveness
Pressure from substitute products

A3.5. Data logging for SWOT analysis

For each of the markets or segments considered, list the most important (most relevant/affecting the business) elements across all four categories: Strengths, Weaknesses, Opportunities, and Threats (see Table A3.1). In each of them, the wording should be ordered by importance: first comes threat number one, and so on. SWOT should be as focused as possible: for example, if necessary, build a separate table for each new market or group of buyers. It makes no sense to list everything possible and impossible: limit yourself to only those elements that have greatest influence to your company. Be objective. Can you back up your claims with evidence (quotes, letters, industry statistics, press reports, government publications, dealer reports, customer comments)? Remember that the analysis should be focused on the customer, not inside the organization. As you review your next application, it is helpful to ask yourself the following questions.

• Are we sure that this is actually the case?
• How sure are we?
• How do we know?
• Is it possible that this will change soon?
• Does this statement have any relevance/meaning/meaning to our customers?
• Have we considered this position in relation to competitors?

In practice, a SWOT analysis is often compiled for each leading competitor and for individual markets. This reveals the company's relative strengths and weaknesses, its ability to deal with threats and seize opportunities. This exercise is useful in determining the attractiveness of existing opportunities and evaluating the firm's ability to pursue them.

Table A3.1 SWOT analysis

What should be done:

• Rank statements in order of opportunity.
• Include only major statements/aspects.
• Have evidence to support them.
• Strengths and weaknesses must be considered in relation to competitors.
• Strengths and weaknesses are internal aspects.
• Opportunities and threats are external aspects of the market environment.

What are the main conclusions that can be drawn from this?

A3.6. Summary

In this chapter, we looked at conducting a SWOT analysis for each market or segment under consideration. This approach is simple, yet it allows the company to examine the opportunities in the market and weigh its ability to pursue them. At the same time, threats that can undermine the position of the firm are also studied. Strengths and weaknesses are viewed from the buyer's point of view, which provides a real basis for resource allocation decisions and helps the company make the most of its opportunities.

Checklist: Strengths, Weaknesses, Opportunities and Threats
We recommend that you read and complete the following checklist.

1. What you need to know
Before moving on to the next chapter, you should complete a SWOT analysis for each market. To do this, it is necessary to study the internal strengths and weaknesses of the company and identify the opportunities and threats that exist in its external market environment. Items in each of the four categories must be ranked. The result of the analysis should be conclusions for the company. If you serve more than one market, you must complete the appropriate forms for each market.

If you have not yet collected the information you need to do this, we strongly recommend that you return to this chapter as soon as possible, and certainly before you select target segments and draw up positioning strategies.

2. The table must be filled
Record your progress: did you complete the table?

A 3.1: SWOT analysis

Be prepared to return to the table if/when more information becomes available.

3. Collected information
This chapter requires the following types of information. Indicate at what stage of collecting relevant information you are.

Business owners make dozens of important decisions every day. Expand your range? Enter a new market? Launch a PR campaign? How not to get confused in the routine and follow an effective development vector?

The only way to be sure that you are moving in the right direction is to look at the business from the outside. This is the point of a SWOT analysis. It will make you look at the potential of the business from a different angle. You will not only study the work of the company, but also evaluate how it will work next week, next month and even next year.

What is SWOT Analysis

Although the acronym sounds intimidating. In fact, SWOT analysis does not involve the use of ingenious algorithms and complex calculations. The name SWOT analysis itself means:

• S- Strengths
• W- Weaknesses
• O- Opportunities
• T- Threats

SWOT analysis demonstrates the impact on the business of positive and negative factors both from the inside and from the outside.

Strengths and weaknesses of the company are internal factors, while opportunities and threats are external. Internal factors are formed on the basis of commercial activities and external ones come from the business environment.

Strengths and weaknesses focus on the present, while opportunities and threats focus on the future. There is a relationship between what is happening now with what may happen in the future.

You can control the strengths and weaknesses of the business. It's hard, but you'll get over it with time. For example, you can influence:

• company reputation;
• customer service standards;
• geography of business presence;
• relationships with partners;
• assortment of goods.

Opportunities and threats are out of your control. You can try to plan and even influence them, but in the end they don't depend on your decisions. An example of factors that are not subject to influence by the company:

• market trends;
• competitive environment;
• political changes;
• currency fluctuations;
• weather.

How to do a SWOT analysis

Because of its conceptual simplicity, SWOT analysis is a versatile tool. It is applicable for both startups and large holdings. To get a reliable SWOT analysis, follow the basic rules:

• Specify the area of ​​study. If you conduct an analysis covering the entire business, then the results will be generalized. Select the direction in which the analysis will be carried out: a separate commodity unit or group of goods, manufacturing process, financial flows, administrative resource, etc. small companies and private entrepreneurs, it is advisable to conduct a SWOT analysis of the entire activity.
• Be objective. Use versatile information, do not rely solely on your own opinion. A strong side will only be strong if the market sees it as such, and not just the business owner. Involve employees and customers in the SWOT analysis. The more abstracts you collect during the brainstorming process, the better.
• State your ideas clearly. Avoid lengthy and ambiguous wording. The simpler the better.

Record the strengths and weaknesses of the company in the table.

Separately fill in the table of threats and opportunities.

• How can strengths be used to take advantage of opportunities?
• How do strengths help neutralize threats?
• What weaknesses prevent you from taking advantage of opportunities?
• How do weaknesses exacerbate threats, what are the risks?

Carefully study the answers received, divide them into groups, highlighting each with a separate color. Why highlight with flowers? To make it easier to work on the project at other stages of planning. For example, when you form the company's budget, you will return to the SWOT analysis and take into account all the factors. related to the financial aspect.

27 SWOT Analysis Questions

Whether you're analyzing your business on your own or as a team, starting research can be a headache. The following questions will help you move forward and make an objective SWOT analysis.

How to use SWOT analysis

Depending on the results obtained, develop a plan to use the advantages and opportunities, as well as eliminate weaknesses and leveling threats. Combinations of SWOT analysis elements form certain strategies. Based on them, choose the desired direction of development.