The SWOT analysis (known in Spanish as DAFO, FODA or DOFA) is perhaps one of the techniques that has stood the test of time as an evaluation or research tool. The acronym stands for Strengths, Weaknesses, Opportunities and Threats.
It’s quite common for anyone who has worked in digital marketing or at a digital marketing agency, and it’s also very well known to those who studied communication or human resources.
It’s quite simple, easy to do and gives good results when it comes to understanding a brand’s current situation or making decisions for the future.
What matters here, and perhaps the key to doing it right, is being very objective and realistic and understanding clearly what a strength, a threat, a weakness or an opportunity really is.
Some people divide these characteristics into internal and external to better clarify the 4 sections. Seen this way, strengths and weaknesses are internal, and threats and opportunities are external.
This means that the company can work on its strengths and weaknesses from the inside. However, it can’t fully control threats and opportunities, because they depend on external factors.
Let’s go a little deeper into each of these parts with some examples.
Examples of a SWOT analysis
1. Weaknesses
Here we’ll list all the elements, situations or lack of resources a company has internally. For instance:
● Few human resources
● A small budget to invest
● No follow-up on tasks
● An unfavorable geographic location
● Slow production times
With these examples, we can see that they’re all things the company can fix. It’s up to the company to get more human resources, make investments that generate a higher return so it can be self-sustaining, and appoint someone responsible for following up on tasks.
Even getting a better location is an internal task for the company, however external it may seem. There are millions of options out there, but the change really depends on the time, effort and money the company invests in it.
Likewise, production times, which are surely affected by the lack of staff, will improve once one point is fixed.
2. Threats
Threats, although they have a negative connotation like weaknesses, are things the company doesn’t actually control. A great, very current example is the COVID-19 pandemic.
Other examples could be:
● Delays from distributors
● Problems legalizing documents or completing procedures
● Rising raw material costs
● Lots of competition in the industry
Here we see aspects that are beyond the company’s control and that it has to adapt to. However, it’s important to have action plans so you’re better prepared for any possible threat.
That’s exactly why you do a SWOT analysis: this way you can have a contingency plan and be somewhat prepared to weather threats with as little damage as possible.
Likewise, keep in mind that, just as nobody was prepared for something as big as a global pandemic, it’s hard to be sure you’ll be able to cover every threat. But if you have a few aces up your sleeve, it will undoubtedly be easier to face any adversity that may arise.
3. Strengths
These are the flip side of weaknesses: the good side of the company’s internal aspects. Some of the most common examples are:
● Good financial capital
● A solid market presence
● High levels of credibility
● Excellent production times
● Optimal return on investment
● High-performing teams
● Up-to-date technology
You can surely find many strengths, but this is where objectivity plays a key role. Because you may think you have the best team or the highest-quality product, but is that your decision or your customers’?
That’s why, when researching your strengths, it’s important to have the perspective of everyone involved and your customers’ backing that the information is correct.
4. Opportunities
Finally, for opportunities, it’s very important to keep in mind the current situation of the market in general and of your competitors, because this is where you’ll really find out what your chances are.
Some specific examples could be:
● High demand for your products or services
● Seasonal sales increases, such as winter-summer, Christmas, New Year, etc.
● Low raw material and distribution costs
● Competitors moving or closing down
Anything that happens externally that benefits you or gives you a window for growth should be listed among your opportunities.
Now, let’s talk about the types of SWOT analysis you can carry out, or how to apply them depending on the context you need. Because the truth is that they need to be updated from time to time, especially if you’re going to launch something new or different.
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Types of SWOT matrix
One of the advantages of this tool is that you can also adapt it to your company’s needs at any given time.
You can do a SWOT analysis if you need to hire new staff, if you’re going to open a new branch of your business or if you’re going to take your product international.
We could say there are professional and personal SWOT matrices. What we’ve discussed in the previous paragraphs is more professionally oriented, but what if you want to analyze the profile of a job applicant or a team member?
You can also use the benefits of this tool to get to know that person in more depth and find out whether they’re aligned with the company, meet what you really need and can bring you what you’re looking for.
Let’s say you need someone as a content creator; some of the strengths you should look for are:
● Writing and spelling skills
● Good use of SEO
● Experience with the topics you’ll cover on your platforms
● Productivity levels
● Time management
● Research skills
For weaknesses, you can focus on the ones you know can improve within your company or with your resources. For example, if they need better equipment to work faster and you can provide it, that’s a weakness you can improve.
Or if they don’t have much experience in one of the topics you need, you can create learning opportunities or assign someone to help them fill in the gaps.
As for threats, you can keep in mind that many companies are currently looking for content creators for their brands, since content marketing has become a fundamental pillar. This will increase the competition when it comes to hiring this person.
Another threat could be the salary offers the person receives. If you don’t have the best salary to offer compared with others, try to make up for it with other benefits the applicant will find interesting and useful.
As for opportunities, having someone specialized in what you need, who arrives with fresh eyes and new ideas, will always be valuable for your company.
In addition, when someone new joins a team, they arrive without the bad habits some colleagues may already have, and they change the atmosphere by bringing something new.
So, with the help of your SWOT analysis, you’ll be able to tell whether it’s really a good idea to invest in this person or not, or perhaps adjust a few things to keep them and beat the competition.
If you need a salesperson, it’s better to have one excellent one than 3 who don’t meet expectations. Or if you need a designer, it will be much more cost-effective to invest in a very good one with quality equipment than to try to do what you need yourself with some online program.
Always use a SWOT analysis to find out the strengths, weaknesses, opportunities and threats of any aspect of your business you’re going to invest effort, time and money in.
That way, you’ll be more confident in the decision you make and prepared for eventualities beyond your control, as is the case with threats and opportunities.
Because although opportunities have a positive connotation, or we believe they’re windows to success, if we’re not prepared to seize them, we can lose them and, with them, let go of options that may have been exactly what we needed.
If you still feel you need more information about SWOT analyses, you can find thousands of examples online of how to do them or of what elements to consider when defining your strengths, weaknesses, opportunities and threats.
You can even find ones for huge brands like Disney, Coca-Cola or Airbnb, which will give you a broader view of how large companies operate and of the elements you might need to keep in mind in the future.
Finally, we’d like to invite you to share this information with your team leaders or with those who become your right hand when making decisions.
This article will help you work hand in hand with the same information and steer your efforts in the same direction.
A SWOT analysis is usually supported by a good marketing information system, and its conclusions feed directly into your strategic marketing.
