How to Use a SWOT Analysis

One of my pet peeves is how teams present their SWOT analysis. I want to discuss how to build a SWOT analysis and how to use it effectively to support your solutions. Most people understand that strengths and weaknesses are internal factors, while opportunities and threats are external.

The first step in creating a SWOT analysis involves building a list of these components. For example, consider the following:

1. Strengths: Strong relationships with artisans in developing nations and good relations with NGOs.
2. Weaknesses: Reliance on a small group of committed customers and a lack of supply chain logistics in developing nations.
3. Opportunities: Growing interest in ethical consumption and increasing market potential despite economic downturns.
4. Threats: New competitors and emerging causes.

However, the problem arises when teams only present this list without discussing its implications. It’s essential to analyse what these factors mean and how they can inform future strategies.

For instance, internally, you can leverage your strong relationships with artisan communities to develop new product collaborations. Building strategic relationships with local NGOs can help you reach a broader audience. Your presence in the retail community can attract new customers, especially when paired with a well-executed social media strategy.

On the constraint side, addressing the lack of cultural and technological awareness involves establishing partnerships with logistics providers in developing nations to strengthen your supply chain. To counteract the reliance on a core group of customers, you can use that strong community presence and expand your customer base with that new social media strategy.

Externally, it’s important to consider how to capitalise on available opportunities. The growing interest in ethical consumption offers the potential to lead in the development of standards for ethically produced goods. Additionally, with the rise in social media popularity, you can spread your message widely and attract more customers.

While an economic downturn may result in decreased consumer spending, leveraging community relationships can help mitigate the impact of this challenge.

In summary, the main goal is to take those strengths, weaknesses, opportunities, and threats and articulate how you plan to address them. Rather than simply presenting the analysis, focus on insights that guide your strategic alternatives and support your solutions.