SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is an organized list of a business's greatest strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal to the company (reputation, patents, location). You can change them over time. Opportunities and threats are external (suppliers, competitors, prices) - they exist in the market whether you like it or not. You can't change them.

Existing businesses can use SWOT analysis at any time to assess the changing environment and respond proactively.

SW represents the company's internal factors, and OT represents the company's external factors. These factors are closely related to the company's environment.

The purpose of external analysis is to understand the relative position of the company and its competitors in the market, thereby helping the company further understand the company's internal analysis

The direct result of SWOT analysis is a set of information tables. According to the goal setting, the generated products can be search areas, business solutions, innovation points, etc. required in the product innovation process, accompanied by importance or priority ranking.

However, whether it is a company doing business analysis or a product strategic planning, it is impossible to obtain meaningful output results by simply writing out SWOT as objectively as possible. SWOT analysis doesn’t stop there, either.

For the most complete, objective results, a SWOT analysis is best conducted by a group of people with different perspectives and stakes in the company. Management, sales, customer service and even customers can provide effective insights. Additionally, the SWOT analysis process is an opportunity to bring your team together and encourage them to participate in and adhere to the company's ultimate strategy.

A SWOT analysis is typically performed using the Four Square SWOT Analysis template, but you can also just make lists for each category. Use the simplest way to organize and understand the results.

I recommend holding a brainstorming session to identify factors in each of the four categories. Alternatively, you can ask team members to complete our SWOT analysis template individually and then meet to discuss and compile the results. As you work through each category, don't get too hung up on the initial detailed instructions. Bullet points are probably the best way to start. Just capture the factors you think are relevant to the four areas.

After you've finished brainstorming, create a final prioritized version of your SWOT analysis, listing the factors in each category in order of highest priority, from bottom to lowest priority.

S (strengths) are strengths (internal, positive factors)

W (weaknesses) are weaknesses (internal, negative factors)

O (opportunities) is opportunities (external, positive factors)

T (threats) is threats (external, negative factors)

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Once you have identified and prioritized your SWOT results, you can use them to develop short- and long-term strategies for your business. After all, the real value of this work is using the results to maximize the positive impact on your business and minimize the negative impact.

But how do you translate SWOT results into strategy? One way to do this is to consider how your company's strengths, weaknesses, opportunities, and threats overlap with each other. This is sometimes called TOWS analysis.

For example, look at the strengths you identified and then think of ways to use those strengths to maximize opportunities (these are strengths – opportunity strategies). Then, see how you can use these same strengths to minimize the threats you identify (these are Strengths—Threat Strategies).

Continuing this process, develop strategies to take advantage of the opportunities you identify to minimize disadvantages (Weaknesses – Opportunity Strategies) or avoid threats (Weaknesses – Threat Strategies).

Once your strategy is developed and incorporated into your strategic plan, be sure to schedule regular review meetings. Use these meetings to discuss why the results of your strategy are different than what you planned (because they always will be) and decide what your team will continue to do.

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In the process of maintaining competitive advantage, enterprises must have a deep understanding of their own resources and capabilities and take appropriate measures. Because once a company has a competitive advantage in a certain aspect, it will inevitably attract the attention of competitors. Generally speaking, after a period of hard work, an enterprise establishes a certain competitive advantage; then it is in a position to maintain this competitive advantage, and competitors gradually begin to respond; then, if competitors directly attack the enterprise's advantages, or Adopting other more powerful strategies will weaken this advantage.

There are three key factors that affect the duration of a company's competitive advantage:

If an enterprise clearly analyzes these three factors, it will clearly understand its position in establishing and maintaining competitive advantage.

1. When conducting SWOT analysis, you must have an objective understanding of the company's strengths and weaknesses.

2. When conducting SWOT analysis, you must distinguish the company's current situation and prospects.

3. When conducting SWOT analysis, you must consider everything comprehensively.

4. When conducting SWOT analysis, you must compare with competitors, such as whether it is better or worse than your competitors.

5. Keep the SWOT analysis method simple and avoid complexity and over-analysis.

6. SWOT analysis method varies from person to person.