What is a SWOT analysis?

The SWOT analysis refers to the acronym formed by the crucial elements in any type of evaluation: Debilidades, Tomenazas, Fortalezas and Orpportunities. To understand what is SWOT helps you to have a panoramic view of a given situation. In this way, you'll be able to make decisions based on data and put the eyes on areas that need improvement. ¡Develop a SWOT analysis takes time and dedication strategic!

• – Weaknesses. Are internal areas that need more attention. These weaknesses can be lack of resources, processes with structural deficiencies or inefficiencies in the management, among many others. In short, are all aspects limiting the ability of development.
• – Threats. In this section, we refer to external factors that can jeopardize the progress of your strategy. Changes in the market, new strong competition or major legislative changes, for example, can potentially cause problems. These factors are out of our control, but we must not lose sight of.
• – Strengths. It is understood by those inner qualities that make you stand out. ¡These are the strengths! May include human talent, technological means of the latest generation, a location, a tactic... to Recognize your competitive advantages is key to boosting your position in the context.
• – Opportunities. The possibilities outside that can benefit the set of actions implemented are the opportunities. These can integrate new trends in the sector, access to the best suppliers, or the removal of barriers, among others. Identifying it as soon as possible helps you to act quickly.

Now that you know what is SWOT sure you will find it very easy to understand how it is made. So keep in mind the following steps to do so and will be a simple task!

Step 1. Collection of information. Gathers all the information about your company, competitors and the industry is more significant. Look at trends, technological advances, progress of new markets, strategic partnerships... it also Identifies actions less profitable to avoid them!

Step 2. Performs internal and external analysis. It synthesizes and prioritizes the information from the previous step! Create a list of clear and rigorous with the weaknesses, threats, strengths and opportunities that you might find. To do this you have to look within and out of form criticism!

Step 3. Presents different strategies of action. There are four types of strategy leading that have their focus on two of the axes of the matrix SWOT: defensive strengths and threats), offensive (strength and opportunity), reorientation (weaknesses and opportunities), and survival (weaknesses and threats). Choose your roadmap!

Step 4. Evaluates again. After a period you deem sufficient, you should re-evaluate the information collected. The SWOT analysis is not static, it evolves with time. It reviews the matrix frequently as circumstances change and the environment! In this way, you'll find that your strategy remains relevant.

Perform a SWOT analysis is the key to a better understanding of the situation of a particular company and minimize the risk of their actions. Before embarking on a new strategy, it is convenient to take the pulse of the situation, which will help us to make decisions with reflection and not act on impulse. The SWOT analysis of any company serves to observe the situation from different perspectives!

Among the factors internal analysisinclude the departments of production, human resources, finance or marketing, for example. In terms of an approach with the look at exteriorwe need to consider the sector and the competition in its entirety, as well as to the customers, the market and economic factors, social and political. For a SWOT is useful to you has to be a way impartial and objective the reality of the company. It is for this reason that you have to try to avoid the fact to minimize the weaknesses and threats, as well as underestimate the strengths and opportunities. I understand what is SWOT and how to apply it is essential!

Perform a SWOT comprehensive needs dedication. Don't forget to customize it according to your specific demands, and to identify the key elements of a simple, brief, and direct. I implement the method of SWOT provides very valuable information! It is crucial to have a strategy of action defined. To proceed in a rational and efficient, reducing possible errors. This self-knowledge tool it is mostly used in business field because it facilitates an in depth understanding of external reality and internal of any business. Despite this, keep in mind that there is not a unique way. It is essential that you be aware that there are several alternatives, and many of them equally valid.

To finish explaining what is SWOT, we share a practical example and fictional, with the aim of you know how it can be applied in the real world. Put yourself in situation! Forms part of the management team of a small chain of supermarkets. Gogreen is the name of a supermarket dummy that operates in the food industry, healthy, ecological, and sustainable. We got into a small matrix that reflects the SWOT analysis of a company!