SWOT is an acronym that stands for strengths, weaknesses, opportunities, and threats. SWOT analysis is used to form a business strategy for the future.
Due to how effective it is, this form of analysis helps with figuring out areas in which your brand is doing well, bad, where it can benefit from and what could cause a sudden decrease in the business quality.
Oberlo has an article on Everything You Need to Know About SWOT Analysis with real-world examples. However, the article does not expand on the benefits of the method, and that is one aspect that could help persuade more brand owners to carry out SWOT analysis.
So what are the benefits of SWOT analysis?
Benefit #1 – Cost-Effectiveness
SWOT analysis does not cost a lot and it can be a lifesaver for companies that are struggling with their finances but are still in need of carrying such analysis.
There is no need to bother with paperwork or hiring a team of professionals who have a high hourly rate and will take their time without hurrying. Nor will you have to buy expensive software.
SWOT analysis can be carried out by someone from inside the company as there is no need to have special training or technical skills.
Finally, while still on the subject of saving money, a proper analysis will prevent you from losing money in the long run because you will have a much better understanding of the market. And this understanding leads to fewer errors.
Benefit #2 – Discussion Promotion
Sometimes, a company reaches a point where things are stagnated and hardly anyone is willing to lift a finger and incentivize a constructive discussion. On the other hand, SWOT analysis will promote a discussion.
As a business owner, you want what is best for the brand. And SWOT analysis will present you with results and aspects that require a proper conversation between those who are working in higher positions in the company.
Knowing weaknesses and potential threats will help to take action and thoroughly discuss what can be done to prevent the problems that the company faces.
Benefit #3 – Multiple Points of Application
Like the acronym of SWOT says, you gain access to the method that covers 4 important characteristics of a business.
Strengths will reveal the departments which are doing great and deserve praise or even rewards. Uncovering new opportunities is also necessary if you are looking to expand by reaching more customers.
Benefit #4 – Brand’s Integration and Coordinations from Within
A good atmosphere and teamwork are some of the keys to running a successful business. If there is a negative atmosphere in the air, the employees will not be able to work to their fullest potential due to a lack of motivation.
SWOT analyzes factors on the outside of the business, but it also does a good job of determining how your company is doing on the inside as well. By receiving information about various departments, you can get a better picture of which of them might be behind the problems.
Coordinating everyone to be on the same page without data to back up your decisions will not go well. So why risk pointing fingers at random branches when you can get in-depth information to back you up. And when you get things in order and have everyone on the same page, the efficiency of the work will also increase.
Benefit #5 – Knowing When to Go Offensive or Defensive
When you know about upcoming threats, like new brands entering the fray and joining the industry, planning counter-measures becomes easier. Fending off new competition can be inevitable if you want to survive.
At the same time, knowing how the market will shape up beforehand allows creating a strategy and maximizing profits by being one of the first to take the step.
Benefit #6 – Insights and Help with Fault Correction
Another benefit on the list is gaining access to information about the company and having the opportunity to discover how each department is doing. You get to look at statistical figures and understand whether someone is doing their work efficiently or not.
Reliable information helps with making changes that are based on solid evidence and transform the company into one that will become better and bring in more profit. After all, being stagnant is not healthy for a business, and if you want to see success, you will need to adjust and adapt.
Benefit #7 – Self-Assessment
As a leader of a company, you should hold yourself responsible for how good or bad the business is doing. And carrying out a complete SWOT analysis will also reveal how you have been doing your work so far.
The strengths and weaknesses that show up will reflect your shortcomings and merits and help improve as both the person and a leader.