SWOT analysis is a powerful tool that allows you to assess the prospects of a project or idea, generate new solutions or justify them. Despite the fact that SWOT was introduced into practice back in the middle of the 20th century, it is still quite popular among managers and marketers to this day. The essence of the method is to divide the significant factors into several categories: strengths and weaknesses, as well as opportunities and threats.
Instructions
Step 1
Decide on the strengths of the project. This category will include all those qualities, features and differences from competitors that favorably distinguish an idea or product from a number of analogues. It is worth looking at your "brainchild" through the eyes of a potential consumer and find out what can attract him. A well-known name or a fairly long stay on the market can act as a strength, because consumers are already familiar with it and they do not need to be convinced that the product deserves attention. Another argument in your favor is scientific evidence of the effectiveness of the product or the use of the opinion of an expert, a well-known and respected person. The price can also be attributed to the same category if it is lower than the price of competitors. However, there are a number of fashion products for which the advantage is, on the contrary, a higher price. The strengths include the high quality of the products or the originality of the idea.
Step 2
Weaknesses, on the other hand, prevent you from effectively selling a product or idea. Please note that those factors that are strengths in one case may appear in this column in another. For example, if a product has been known for a long time, but the opinion is not the best about it, it can be very difficult to change the situation. A low price can be considered a sign of poor quality and arousing suspicion. The weak side is too narrow a group of potential buyers. Products that are rarely used can be difficult to sell, especially if they are expensive. The same applies to new products: consumers have no experience with this product, hence the level of trust is very low.
Step 3
Opportunities, like threats, are external factors. They depend on the market situation, competitors' actions, etc. This can include an increase in potential consumers: an increase in fertility if you sell products for children, the growing popularity of environmental movements if you position your product as environmentally friendly.
Step 4
Threats are likely negative scenarios for the development of events. The growing popularity of a product could lead to an increase in the number of competitors who are likely to offer a similar product or service for less money. Or, for example, a downturn in the economy predicted by experts, a crisis that may hinder successful sales.
Step 5
By comparing all four categories, it is much easier to assess the prospects of an idea or project. Knowing its strengths and weaknesses, you will be able to develop a strategy for bringing the product to the market, correctly beat the shortcomings and even turn them into advantages. Having analyzed the probable threats, it is much easier to prepare in advance for the worst development of events. At the same time, having evaluated the future possibilities of the project, one can choose the correct line of its development.