Understanding of SWOT analysis and how to use it
When you want to start a business, you need planning first. In addition to determining the product, brand name, and budget, it’s good if you also estimate where your position is compared to competitors.
For those of you who have or are studying the world of marketing, maybe you are no stranger to this one analysis technique: SWOT analysis.
Understanding SWOT analysis
SWOT analysis is a simple analysis method but has a big role in developing profitable business strategies.
SWOT itself stands for Strength, Weakness, Opportunity, and Threat. This analysis aims to determine the main aspects of a business that includes excellence, lacks, opportunities, and threats.
Using this SWOT method, you can design the right strategy to make your business superior to competitors.
Benefits of Swot Analysis for Business
In general, the use of SWOT analysis is to identify strengths, weaknesses (weakness), opportunities (opportunity), and threats (threat) in a business or business.
Here’s the usefulness of the analysis of the SWOT method in more detail:
- Optimizing the advantage (Strength) a business to get more maximum profits
- Overcoming Weaknesses (Weakness) that can reduce business profits
- Identify opportunities (opportunities) that can increase business profits.
- Anticipating and preventing the occurrence of business constraints or constraints caused by threats (threats).
Factors in the SWOT analysis
If further detail, this SWOT analysis is divided into two parts: internal factors and external factors.
In the SWOT method, internal factors are the factors owned by your business and are not affected by outside elements.
Internal factors consist of strength and weakness, while external factors consist of opportunity and threat.
Strength is your business power, such as quality, location, or other elements that make you superior to competitors. Make a list of as many powers as possible so you can find out what distinguishes your business from a similar business similar to yours.
The goal is that you have a distinctive authenticity or characteristics that make you different from competitors with similar business ideas.
Weakness is your business weakness compared to competitors. Estimate all the shortcomings you have so that when you want to promote, you can find out which points have a “safe” location until it doesn’t touch the weaknesses owned by your business.
It will be better if you can take advantage of your shortcomings into advantages in your advertising strategy. For example, Gojek recognizes that information about partner training or insurance is a less important topic. However, they still make special advertisements on the topic intending to promote the campaign.
Opportunity is a chance that you can achieve after analyzing your position through two internal factors above. You can also specify opportunities through the budget calculation that you will spend to do certain promotions or ads.
Make program planning at the beginning of making a business that you can update every 3-6 months so that you can analyze which programs are efficient for you to use in the future.
Threat or threat in the SWOT method leads to the future of your business based on the decision you take now. There are also some things you need to calculate and enter in the threat column like:
- Availability of resources
- Consumer interest period
- break-even point or business capital turning point
Although it looks like steps that can only be applied for business people who want to start their business, you can also use this business technique in the development process.
You should have been able to use your business analysis data to determine what power makes your business superior compared to other competitors, then you can also find your business weakness by asking directly to customers or consumers through testimonies or surveys.
Furthermore, opportunities and threats are also two important things that you can analyze so you can search for your business opportunities and prepare for all threats that might block you.
SWOT analysis question
After you understand the understanding of each letter from the word “SWOT,” this time you started designing analysis of your own business. Not only need to understand the use, but you also need to understand what you have to write later in your analysis. The following is a list of questions that you should answer to analyze your business.
- What distinguishes your business from other businesses?
- What advantages does your business have than others?
- What will be seen by consumers as an advantage?
- What factors make competitors superior to your business?
- What are the excess competitors that are not following your business principle?
- Can the uniqueness of your business meet the ideal customer needs?
- What opportunity can be achieved now?
- What is the development of trends today according to your business? If yes, good. But if not, maybe you need to increase brand awareness or do improvisation so that the brand is the pioneer of a trend (becoming a trendsetter).
- What is the competitor thinking?
- What obstacles are likely to hamper your business?
- Is there a government rule that will slow down business development?
Example of SWOT analysis
If you still don’t understand the SWOT analysis through the two factors that have been explained along with the examples of questions based on the basic components to analyze, the following are examples that you can use as a guideline for creating your analysis.
Netflix is a paid film streaming, serial, and video provider. Netflix users can enjoy impressions through laptop media, tablets, smartphones, or even Smart TV.
The collection of Netflix shows is very diverse, from various types of genres to impressions from various countries. To be able to enjoy the service, users need to subscribe every month.
- Superior. Netflix led the line of streaming film providers. Based on data gathered in 2020, Netflix led with 203.7 million subscribers.
- There are no ads. Netflix users can watch the impressions they like without pause advertising. The spectacle that has ads in it reduces comfort when watching.
- Original. Netflix also provides various types of original impressions in the form of films, serials or documentaries produced themselves.
- Practical. Netflix users can download impressions that they like to watch offline where and anytime.
- Quality show. The content provided can compete with other TV station shows. The proof is that the original films of Netflix production are included in film award nominations such as Emmy Awards.
- Although Netflix offers a variety of original impressions, not all these impressions appeal to the audience. In addition, there are still many people who choose to use free streaming services.
- Difficulty innovating.
- When the rights were run out, the impressions that are rented Netflix must be returned. This means that the show cannot be watched again on Netflix.
- Netflix bridges a new way of watching entertainment impressions. Netflix creates a new experience for its users by offering convenience while watching.
- Establish cooperation with more than 180 countries in the world to widen ‘wings’ streaming services. Netflix has great potential to develop in providing quality impressions throughout the world.
- The audience can determine the language in audio, subtitles, and image quality aired.
- Intense competition. Euphoria streaming film services to the benefits achieved by Netflix make various competitors tempted to run a similar business. For example, Amazon, HBO, Disney +, and others. If you continue to grow, Netflix users can likely shrink.
- Government regulation. The limitations in government regulations regarding service providers such as Netflix, in some countries, can be an obstacle to Netflix to development.
- Hacking account. The burglary of the Netflix user account can also be an obstacle. Amid the current popularity of Netflix, some individuals abuse it in various ways to benefit. If this continues, Netflix customers can choose to move to competitor streaming services.
The service provider of online motorcycle taxis works is one of the unicorn start-up companies in Indonesia. Gojek’s success is inseparable from its business goals that are following the needs of the community at this time. Come on, see the SWOT analysis for the following gojek.
- It is important in supporting the movement of everyday community activities and is always needed.
- Very efficiently used for the community.
- Various services. In addition to transportation options, users can order food, shopping, send goods, and gojek.
- Many numbers of driver-partners (drivers).
- Open many jobs.
- Must have adequate internet access to use it.
- The company relies heavily on driver-partners.
- Crimes from individuals on behalf of companies can have a big influence on customer trust using gojek online transportation.
- Providing an opportunity to improve the living standards of the driver’s partner.
- Can develop services to other regions.
- Have the opportunity to penetrate other business sectors. For example, the presence of Gopay as an electronic payment option creates convenience of transactions.
- Law regulations that regulate online transportation can change later.
- Competitors that provide tariffs and offers at more competitive prices can make customers switch to other online transportation services.
- The prohibition in certain regions that do not allow online transportation to operate. This can be one of the obstacles to gojek and driver-partners.
How using SWOT analysis is not difficult, right? Now you can practice this analysis for your business.
In addition to using the SWOT method analysis, don’t forget to build an image and business profile that has integrity and credibility so that it is easier to find customers.
One step that you can take is to make social media interact directly with consumers. In addition, using a website to display all your products is also one of the best options in this digital era.
For your business to grow and increase the number of customers you don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can improve visitors in your online business portal. FROGGY ADS is an online advertising service that can help you control all your product campaigns. Helps you target the targeting target you want and give you many choices to market your product.