How to Perform a SWOT Analysis

The classic SWOT analysis might seem like a relic from a bygone era. In this era of dashboards and digital KPIs. It’s simple. It’s old-school. But remains a "tool" in a strategist's arsenal. So what does it stand for? Quite simply Strenghts, Weaknesses, Opportunities and Threats.

When done right, a SWOT analysis can help identify where your business stands today; and give you a brief roadmap of where it could go tomorrow. -Just briefly.

1. Strengths: What Do You Do Better Than Anyone Else?

Let’s begin with the good stuff. This is where you get to brag. Your strengths are the unique qualities that can set your business apart.

This can be in the briefest form of brand reputation that resonates deeply with customers. Perhaps a proprietary technology that competitors cannot match. Identifying strengths is a first critical step in a SWOT analysis.

So how do we go about doing that?

Be objective. The flashy headlines should be laid down. And in a more practical sense, think about what your real strengths are.

A tactical way of doing this is to understand your value proposition. Your USP (Unique Selling Point).

Here's a very simple template:

[Your Company] help(s) [Customer Segment] to [Objective] by [Action]

Example: "ContentfulCopy help businesses produce performance driven content by reducing their overheads of an in-house team, and enabling great writers to do the job."

Once you've understood your USP, proceed to list the strengths that contribute to that USP.

Don’t overlook intangible assets like customer loyalty, language, or your network of relationships. Things like this can sometimes be crucial, critical assets.

2. Weaknesses: Where, How Are You Vulnerable?

Now, it’s time to get uncomfortable. Weaknesses aren’t easy to confront. But avoiding them is a surefire way to land yourself in a situation where your competitors gain ground, or worse, where you get blindsided by market changes. Recognizing weaknesses is important to strategise how they play against your strengths as a company.

Perhaps, you’re overly reliant on one supplier, or perhaps your customer service experience isn’t as polished as you’d like it to be. Maybe you’re too slow as a company overall to adapt to new technologies and be on the edge, or you struggle with employee turnover. Whatever the issue, be honest. This is where the tough conversations need to happen. It’s easier to fix a problem when you’ve fully admitted it exists.

3. Opportunities

Opportunities is where your company’s potential can come into play. Opportunities could be emerging trends, untapped markets, new technologies, or shifts in consumer behaviour that align with your strengths. It’s about looking ahead and asking, “What could we do next? What would allow us to grow, scale, or expand?”

Think about how many companies have pivoted successfully in recent years. The explosion of remote work, for example, opened doors to massive opportunities for companies offering collaborative software tools.

To identify your own opportunities, look at the broader industry trends. Where is innovation happening? Where are customers' needs changing? The key here is to act fast and not let opportunities slip through your fingers. The question is, are you poised to act? To react when the market shows shifts? To anticipate and be ahead of the game?

4. Threats

Threats can come from any direction -economic downturns, regulatory changes, new competitors, technological disruptions, or changing customer preferences. And let’s be clear, they’re often outside your control. But just because you can’t control them doesn’t mean you shouldn’t prepare for them.

Take a hard look at your competitive landscape. Who are your competitors, and what are they doing better than you? How are market shifts -like new regulations or consumer behaviour changes -affecting your business? What could the future hold in terms of threats you haven’t yet foreseen?

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So ask yourself: How can we leverage our strengths to seize new opportunities? How can we address our weaknesses to defend against external threats? This is where strategy begins. A SWOT analysis, when executed well, gives you the "raw material", if we can say that, to make decisions that are hopefully thoughtful, informed, and better grounded.

The business world moves fast. Your strengths and weaknesses can change very swiftly. Opportunities emerge. Threats surface. To stay ahead, you must keep a finger on the pulse.