Swot analysis of companies providing Internet. SWOT analysis of an enterprise - example. How to do a SWOT analysis

(Please note that this analysis is presented for informational purposes only and is not associated with any existing organization of the same name)

Characteristics of the company Gepard LLC

The founders of the company were a group of people specializing in the field of radio electronics. The company began its activities in 2005. A limited liability company was chosen as the form of implementation of entrepreneurial activity. The authorized capital of the company was 20,000 rubles. Fulfillment of orders is the only financing option. The company is an exclusive developer of an intelligent security system for objects for various purposes. The company needs to expand its production space, which is necessary to increase the volume of products produced, and, consequently, to increase working capital.

Marketing plan

At the moment, the company's priorities are:

promotion of manufactured products in this market segment;
obtaining a certificate that will allow the company to reach a new level of sales;
raising the company's rating and achieving a leading position in the field of video security systems.

SWOT analysis of Gepard LLC

This marketing method is a study of the company's capabilities. Next, based on the results obtained, recommendations are developed regarding the achievement of the set goals, as well as the identification of alternative development options.

First of all, it is necessary to make a complete assessment of the macro- and microenvironment of the company. The factors on which the assessment of the internal environment is traditionally based are:

organizational;
production;
marketing.

The external (macro) environment is assessed through analysis:

demand;
competition;
sales;
resource allocation;
factors beyond the control of marketing, such as inflation growth rates, the attractiveness of the area for incoming investors and others.

Carrying out the SWOT analysis itself is as follows::

Based on the assessment made earlier, compile a list of opportunities that the external environment allows the company to realize. Here you should make a list of factors that will help increase demand for the company’s products, reduce the level of competition, and others;
make a list of probable threats that could affect the enterprise from outside. This paragraph should talk about potential opportunities that could lead to a decrease in demand, change the choice priorities of ordinary consumers, increase the level of competition, and others;
make a list of the company's strengths. We are talking about the skills of personnel and their competence, the existing level of knowledge, as well as other factors that ensure the successful operation of the entire company;
make a list of the company's weaknesses. This paragraph highlights the most important reasons that hinder or may in the future affect the development of the organization.

When all the lists are ready, you should highlight the most significant factors from all the compiled lists. This is a very important point, so you should discard only items that really do not play an important role.

At the next stage, the classic SWOT analysis matrix is filled out, which provides an assessment of the influence of macro- and microenvironments on the enterprise as a whole.

After a thorough assessment, the following points remained::

1.Features:

sales of products;
installation by the enterprise;
possibility of warranty and post-warranty service;
ability to meet customer requirements;
flexible pricing policy;

2.Threats

taxation;
constant increase in competition from larger manufacturers;
insufficiency of own working capital;
small capacity of this market niche;

3.Strength:

production of products using modern high-tech equipment;
flexible pricing policy;
high quality of service provision;
trained personnel;

4.Weakness:

direct dependence on the consumer market;
lack of advertising;
small number of own installation teams;
brand unknown.

Filling out the matrix table. Internal environmental factors include the strengths of the company. External – opportunities and threats.

If the company has the opportunity to neutralize the threat or take advantage of the situation provided by the external environment, then a “+” sign is placed in this column.

The “-” sign serves as a sign that the company cannot get rid of the threat on its own, regardless of its strengths.

The graph remains free if there are no relationships between the factors.

At the end of the procedure, not a single field should be left empty: each column must contain either “plus”, “minus”, or “zero”.

Analysis results

The SWOT analysis carried out showed the following results:

The company can increase volumes, and thanks to our own research center, it is possible to implement more advanced product variations.

The main threats are the adopted tax system and limiting the solvency of the potential client audience.

The weakness is the limitation of possible sales and direct dependence on the consumer market.

Analysis of existing management problems at Gepard LLC

The company has the following tasks::

promotion of manufactured products in its market segment;
improvement of customer service;
formation of a distribution network necessary to promote goods to the regions;
obtaining a certificate, which will enable the organization to reach a new level of sales;
raising the company's rating and achieving a leading position in the field of video security systems.

Tactics for achieving assigned tasks

Here, taking into account the specifics of the products being manufactured, as well as the marketing analysis carried out, it is advisable to focus on direct marketing. It does not require large financial investments, but requires coordination of work. Next, we will consider the areas in which the company should activate its activities.
Advertising
In this direction, direct mail to the addresses of potential clients will be a priority. Also, company employees are required to visit nearby villages for the purpose of direct advertising. Additionally, aggressive advertising will be used.

Distribution

For the first year, sales will primarily be made by company employees. But it is planned to attract companies as dealers that will install and commission the systems.

Increased demand
Upon purchase, the customer will be provided with a product with a basic configuration system, but additional options will be available. As a bonus, you will be given the opportunity to install the system free of charge for up to 3 days, during which the client makes a decision to purchase or refuse this offer. This will additionally serve as advertising for potential clients (neighbors, friends, work colleagues, etc.).

Positioning strategy

Once the company has chosen the most suitable market segment, it is faced with the task of introducing it into the selected market niche. In this situation, there are two options for achieving this goal:

Take a position in a small sub-segment in close proximity to a competitor, and then begin to fight for a leading position in the chosen market share.
Implement your task in a free subsegment.

When choosing the first option, the company should carefully weigh its own capabilities: is there enough internal potential to displace existing competitors.

The second option involves the provision of competitive goods. The company gets an excellent chance to get its own audience interested in this product.

Product Existence Strategy

The marketing term “existence” implies providing the product with the required quality, affordability, attraction and promotion.

Accordingly, four types are distinguished :

commodity;
price;
attraction;
pushing.

Let's look at each type in more detail.

The formation of any strategy of this type occurs according to the following plan:

the company's product portfolio is compiled;
organizational issues related to the development of new products, changes to existing ones, or complete exclusion of a product are resolved;

A brand strategy plan is adopted.

According to the results of the assessments, the product group of the Gepard company belongs to the priority development zone. This fact means that for the product being produced, the priority direction of development is the expansion of the existing market, as well as access to new levels. Accordingly, additional funding and investment are directed in this direction.

Improvement strategy

The quality of goods and services provided must be constantly improved. And the main direction of developing this strategy is to keep the product at the existing level that meets the market requirements at a given time.

The term “brand” hides the direct name of the enterprise or product. For the Gepard company, it is most profitable to use a multi-labeling strategy. This choice is due to the fact that the products (security systems) have been used for quite a long time and the use of the same name will make it possible to enhance the overall image of the company. If updated products are introduced, this will also only be a plus.

Pricing strategy

In this case, emphasis should be placed on leadership based on the relatively low cost of the product, as well as its quality characteristics. The cost of the goods produced by the Gepard enterprise is lower than that of competing enterprises, so you can try to win a larger part of the market segment by offering a high-quality product at a lower price. Progress in this direction will maximize market share. To increase income, you need to focus on the value of the product/service provided.

Distribution strategy

Distribution methods are also considered to be controllable factors that help solve the problem of bringing the product to the direct consumer.

Before deciding to open a branch, you should first obtain an assessment of the region where it is located (whether the volume of potential customers is sufficient here). Competing enterprises cannot be ignored either. It is worth assessing the main characteristics of their activities. After carrying out comparative procedures, a list of the most suitable regions for location should be compiled.
It is most preferable to build a choice from the compiled list based on the most frequently used scheme. The proposed region conditionally becomes the center of the area where its influence spreads. It is conventionally divided into 3 zones:

primary;
secondary;
extreme.

The primary zone includes almost 70% of the total number of consumers who use the company’s services. The remaining 25-30% of potential clients end up in the secondary zone. The extreme zone is casual consumers.

The choice of location area is additionally influenced by factors such as :

assessment of potential client base;
degree of competition;
assessment of technical capabilities and others.

It is the evaluative analysis of the above factors that allows you to most accurately calculate the potential of the selected sales point.

In order to most effectively influence the potential target audience, a communication strategy is being developed for the unit to help form and maintain the desired image of the product and the company itself as an organization as a whole.

This strategy includes the following tasks :

conducting personal sales;

Internal environmental factors include strengths and weaknesses. That is, these are any characteristics of the future project that add chances for success and provide advantages in the market and what the project lacks, but what competitors have. That is, strengths can include, for example, super-professional team members, the founder’s personal connections with potential clients (buyers), or the presence of a client base. This also includes a good financial resource, a profitable loan or the opportunity to use an investment cushion. Weaknesses also need to be written honestly. Directly opposite factors may appear here, for example, the impossibility of finalizing the product due to a small amount of financial resources or the lack of a customer base.

Environmental factors include the categories of opportunities and threats. This is all that affects the project from the outside, gives additional advantages to the business idea or reduces its chances. For example, the growth or decline of the market segment in which it is planned to start working, a favorable economic situation in the country, increased investor interest in this market segment or, conversely, a crisis and fading attention.

Factors are recorded in the table in the following form:

That is, among external factors there may be market trends, sales structure, competitive environment, barriers to entry into the market. As well as legislation and the political situation, the economic situation of the country, region, socio-demographic factors, changing technologies, the international environment, the ecological environment.

Internal factors should be looked for in the following list: management, marketing, personnel, analysis of the company's sales system, analysis of the product portfolio, analysis of competitor activity, the presence of a sustainable competitive advantage, analysis of pricing policy. SWOT analysis does not necessarily imply the use of specific financial or economic categories. Therefore, this method is applicable in a variety of situations to build strategies for any kind of organization.

SWOT Analysis Example

Let’s say an individual entrepreneur plans to sell homemade pies to grandmothers in small wholesale, so that they can then resell them at retail.

A SWOT analysis of this business idea might look like this:

It is important to note that if the target audience is not grandmothers, but, for example, schoolchildren and pies will be sold to them personally, the SWOT analysis must be carried out again, since the factors may turn out to be different.

What is the benefit of SWOT analysis?

The convenience of SWOT analysis is that by identifying potential problems for a business, you can adjust the strategy and eliminate interfering factors. For example, before you start baking pies, you can spend a month getting to know grandmothers who want to make money. You can also look for friends who have connections with supervisory authorities. That is, it is important to consider interference not as a final verdict, but as tasks that need to be solved. Of course, if the external environment objectively does not leave a chance for a business idea, then most likely you will have to change the idea. Only large corporations and associations of representatives of specific industries can influence legislation, customs duties or industry control rules. Small businesses, unfortunately, cannot do this.

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SWOT Type Analysis: Theory

SWOT analysis is a study of an object according to four main criteria. S - these are its strengths (English Strengths), W - weaknesses (Weaknesses), O - opportunities formed by the environment (Opportunities), T - possible threats, also determined by environmental factors (Threats). SWOT analysis is a fairly universal methodology. If you use it, you can assess the prospects for the development of businesses, non-profit projects, and, if desired, individual states.

Let's look at the main types of SWOT analysis. Experts identify the two most common.

Quick SWOT analysis. This method of studying an object is limited to listing key factors that reflect its strengths and weaknesses, as well as opportunities and threats that are formed by the external environment. The practical value of this type of analysis is very limited: it is advisable to use it if, for example, the task is to introduce the SWOT methodology to an audience that knows nothing about it.
In-depth SWOT analysis. This method, in turn, is distinguished by much greater detail in studying the properties of an object compared to the previous one. The main advantage of this method of SWOT analysis is the ability to predict (model) further changes reflecting each of the four criteria. That is, not only an assessment is given of the current weaknesses and strengths of the object, but also a calculation of possible changes in them in the future.

Attempts to combine these two models are possible. Moreover, as some experts emphasize, in many cases the SWOT methodology is not presented in its pure “quick” or “in-depth” format. As a rule, it occupies some kind of intermediate position, the characteristics of which depend on how thoroughly the researcher himself decided to study the aspects of the object.

SWOT analytics in business

Among the areas in which the applicability of the SWOT methodology is most justified is entrepreneurship. The fact is that business is a type of activity where all four types of criteria we indicated above can be traced, as many experts believe, very clearly.

For example, each enterprise has strengths (compared to its competitors). Otherwise, the product produced by the company would not be in demand by the market. Also, a company’s strength may be a product it does not produce, but also, for example, a certain experience, expertise, and qualifications of specialists working in the business.

In turn, all businesses have weaknesses. In particular, this may be insufficient process technology or low labor productivity.

Businesses always interact with the external environment - selling something somewhere, contacting suppliers, competitors, and the government. Accordingly, they are very susceptible to various types of threats. Such as, for example, sudden closure of important supply channels, changes in the tax regime, political crises, etc.

Finally, the success of a business almost always depends on the opportunities provided by the external environment. They can manifest themselves in so many ways. For example, low saturation of a niche is certainly an opportunity. Low taxes too. The growth of salaries of target consumer groups is similar.

Why does an entrepreneur need a SWOT analysis?

A SWOT analysis of a commercial organization is very useful for its owners in terms of forming the right business strategy, experts say. This kind of methodology will help companies at any stage of development, as well as in a wide variety of market conditions.

A SWOT analysis of an enterprise is an example of a methodology that will always provide some guidance for action - it cannot be that the company has only weaknesses, and it is also unlikely that the environment will pose mainly threats. There will definitely be some internal competitive tools, and factors that have a positive impact on business will be found in the external environment.

Internal and external criteria

Experts studying the practical application of the SWOT analysis strategy recommend distinguishing between external and internal criteria as clearly as possible. Which, accordingly, include the threats and opportunities of the environment, as well as the strengths and weaknesses of the object. The main distinguishing feature here is that external criteria reflect processes that are directly beyond the control of the object.

For example, if we try to conduct a SWOT analysis of a travel agency, then, for example, an obvious external factor will be the visa policy of those states where the company sends its clients. If it is obvious that the company can still influence certain phenomena in the external environment, this option automatically becomes its strength. And therefore this factor will be part of the internal criteria.

Adequate assessment of criteria

It cannot be assumed that some aspects of an object are strong and others are weak just because of their subjective perception as such by the person conducting the SWOT analysis. Example: the Narcissus company sells vegetables, purchasing them from suppliers in Hungary under an exclusive contract. Farmers from this Eastern European country send fruits of excellent quality to Russia at a very low price.

Starting a business is hard work. There are so many little things you need to pay attention to that you can simply get lost in them.

The only way to ensure that your business will last is to periodically step back from it and look at things from a broader perspective.

This is what SWOT analysis is all about. A SWOT analysis will allow you to look at the potential of your online business. You will not only study how your company works today, but you will also be able to plan its development for the next week, month and even year.

What is SWOT analysis?

SWOT analysis sounds like the name of some scary accounting process. But that's not true. SWOT analysis is not complex, but it is very useful.

The abbreviation SWOT stands for:

S – Strengths
W – Weaknesses
O – Opportunities
T – Threats

This is a list of what needs to be assessed during the analysis. A SWOT analysis forces you to think about the future. Do you know how your business works today, but have no idea what will happen to it tomorrow? A SWOT analysis will allow you to understand this and plan your development process.

A SWOT analysis shows the strengths and weaknesses of your online business, from both an internal and external perspective.

Strengths and weaknesses are internal factors, while opportunities and threats are external. Internal factors relate directly to your business, while external factors concern the environment that surrounds it.

Strengths and weaknesses provide insight into the present state of affairs, while opportunities and threats focus on the future. What is happening and what could happen.

The strengths and weaknesses in a SWOT analysis are under your control. They can be changed over time.

For example:

company culture
reputation
list of clients
geography
employees
partnerships
intellectual property
assets

Conversely, the opportunities and threats of a SWOT analysis are usually beyond your control. You can try and plan for them or influence positive changes, but at the end of the day it is not up to you.

For example:

regulation
suppliers
competitors
economy
market size
trends
financing

Why do you need a SWOT analysis?

In any online business, both new and old, it is necessary to conduct a SWOT analysis.

Whether you're just starting a business or are still in the planning stages, a SWOT analysis will give you a competitive advantage. Completing it will allow you to conduct a break-even analysis and see a more realistic picture of the entire process. Both are necessary in order to obtain financing.

Existing businesses should conduct a SWOT analysis annually. This will allow you to keep your business running smoothly, anticipate problems, work on necessary changes or improvements, and make smarter decisions throughout the year. Basically, an annual SWOT analysis will prevent you from losing touch with your business, customers and production.

How to do a SWOT analysis?

There is no objective way to measure how well you perform a SWOT analysis. It depends on your ability to notice and remember the internal and external factors that may affect your business. SWOT analysis is needed not to make accurate predictions, but to correctly plan business development.

Step 1: Gather the right people

Although important business decisions should generally be made by the founders and managers of the company, a SWOT analysis requires the participation of as many employees as possible. Having more data, even from people who don't fully understand your business, will make your planning even more accurate.

You'll also find that many employees have good ideas and useful skills. Even your customers can provide valuable information.

Step 2. Brainstorm

Once you have your team together, organize a brainstorming session with everyone involved. You can either list strengths, weaknesses, opportunities, and threats together (for smaller teams) or ask participants to create corresponding lists separately (for larger teams).

Consider everything that falls into each category. At this point, don't worry about how important each observation is. The idea is to not miss anything. Just write it all down.

Step 3: Fill in the blanks

Once you've exhausted all the ideas and written four big lists, it's time to start filling in the blanks where more explanation is needed. This is an opportunity for you and your team to ask questions that will determine how important each item on the list is.

Ask everyone in the group to choose the three most important items on each of their lists. Chances are, a pattern will emerge that will show you what to focus on.

Even if you are working on the analysis alone, don't worry. In this case, you are involved in all parts of the business and should have a good understanding of what needs to be considered.

31 Example Questions for Conducting a Strategic SWOT Analysis

Whether you're working alone or in a group, starting a brainstorming session can be challenging. The following questions will help you move forward. We recommend asking yourself these questions so you don't miss important factors to consider.

Questions to identify strengths in SWOT analysis

These are positive internal factors that influence the performance of your business. Although they may be difficult to change, they should be under your control:

What are we good at?
What do we do better than anyone else?
What is our competitive advantage?
What do we do that no one else does?
What resources are at our disposal?
What are the advantages of our online business?
What benefits do our employees have?
What valuable assets does our company have?
What do our clients like about us?

How to determine weak sides when analyzing

These are negative internal factors that affect the performance of your business. Although they may be difficult to change, they should be under your control:

What are we doing wrong?
What are our competitors better than us at?
What complaints do our customers have?
What are our team's weaknesses?
What's holding us back?
What resources do we lack?
What can we improve?

Examples of analysis questions opportunities

These are external factors that can affect your business in a positive way. They may be largely out of your control, but you can use them:

What potential regulatory changes could help our business?
Are market trends favorable to us?
Can the current economy affect us in a positive way?
What possibilities haven't we considered yet?
What new features are becoming available?
Are the prices of our goods decreasing?
Can we acquire additional resources that we lack?

Questions to consider threats in SWOT analysis

These are external factors that can negatively impact your business. These may be largely out of your control, but you can take them into account to minimize the damage:

Who is our competitor?
What new market participants could threaten our business?
Is our market size shrinking?
Could industry trends negatively impact our business?
Is the cost of our goods increasing?
Are our partners' offers sufficient for us?
Are the rules changing that could harm our business?
Is our manufacturer reliable?

How to effectively use the results of a SWOT analysis

As a business owner, you constantly need to decide where to focus your attention. Tough resource allocation decisions are inevitable. No matter how successful you are, you always need to choose where to direct your attention. A SWOT analysis will help you determine which areas you need to focus your energy and resources on.

Step 4: Narrow down your lists

Take the lists you created during your brainstorming session. Now work on shrinking these lists so they can fit in a table on one page (like the example below). Narrow down lists based on two assumptions: how important the factor is and how likely it is.

For example, if you get the bulk of your income from one large client, this is a big weakness that leaves you in a vulnerable position, even if you are confident that this client will not leave you.

Even when you have created a table like the example below, save your lists. You're not going to focus on factors that aren't included in the table right now, but you can be sure that you won't miss any important issues if the situation changes. What is less important now may become critical in the future, and you should be aware of this possibility. You can always change the list and come back to it later.

Step 5: Create Strategies

For each of the factors on your shortlist, create a strategy to take advantage of the strengths and opportunities and to address the weaknesses and threats. These initial strategies don't need to be particularly complex or foolproof, although you can refine them later. For now, just create an action plan.

Also, keep in mind that different factors can work together to balance each other out. How can you use your strengths to eliminate your weaknesses? How can you take advantage of opportunities to neutralize threats? Can you use your strengths to better seize opportunities? Do you have any weaknesses that might prevent you from preventing the threat?

Example of a SWOT analysis table

Below is an example of a SWOT analysis table for an online T-shirt store. Although many other factors emerged during the brainstorming session, these were the most important.

Strengths: Local production allows for fast order processing Many regular customers who promote the business Good ranking by search engines, allowing you to get free traffic	Weak sides: Prices for locally made T-shirts are uncompetitive Higher costs mean fewer material options due to warehousing costs Clients do not like to take measurements themselves
Possibilities: Using technology to simplify the measurement process can increase sales New paid advertising channels like Instagram and Pinterest can be effective Buying clothes online is a trend nowadays.	Threats: Several competitors are currently undercutting prices Website is difficult to use on a mobile device, although mobile traffic is increasing Strong dollar could dampen international sales

Consider what strategies a business owner can implement based on this information. Remember that there is no right or wrong answer here.

6 Examples of SWOT Analysis Strategies

The most important part of a SWOT analysis is how you use the information obtained. Here are six example problems (with potential solutions) to help you start thinking strategically.

Example 1: Your lease is nearing the end of its term and you need to renegotiate the terms. Since the price of the neighboring premises has risen, you are afraid that the same will happen to yours.

Strategy as a result of analysis: start selling online to reduce your space footprint.

Example 2: You rely on raw materials that are in high demand, and prices rise quickly as they become more scarce.

Strategy: Participate in a five-year contract to ensure delivery at a lower price.

Example 3: You have excess cash.

Strategy: Set aside a fixed amount for emergencies and invest the rest for growth.

Example 4: Your employees are ineffective.

Strategy: Hire a work culture consultant to help you understand the situation.

Example 5: Most of your website traffic comes from search engines. If the algorithm changes and your site stops ranking, you could lose a lot of new customers. You need to diversify your traffic.

Strategy: Start using other traffic sources such as social media or paid advertising.

Example 6: Your entire business fits on your laptop, and if it's stolen, you'll lose everything.

Strategy: Purchase a program to automatically back up your files on a daily basis.

Working through a SWOT analysis on a regular basis will prevent you from losing touch with your business, your team and your clients. More importantly, it will help you stay successful in an ever-changing market.

Once you have time to think about the most important things on your list, make an action plan and get to work!

SWOT analysis: what it is and examples of how to do it correctly

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