How to use SWOC analysis
- When begining a SWOC analysis of a product or firm, you must go through each section individually
1- Strength
Strength are features which benefit the company, such as product rules, strengths can also be more abstract.
Example:
- If you have decided to build a product because you know you can offer it cheaper than your compitor, this is an overall strength of the company.
- If you have records of better customer service via positive reviews online, this is a strength you can use it to your advantage.
- Strength can be documented through statistics, customer service reviews and surveys.
2- Weakness
The next step is noticing weakness causes a company to struggle.
For example
- If you have decided to target a younger audience but your packaging is still dedicated to senior citizens, the new consumer base will struggle to connect to the product. This will be shown in reports and can cause an internal struggle within the company.
Weakness need to be documented and acknowledged to handle them promptly before it spreads and leads to overall destruction.
3- Opportunities
Opportunities are often external. They provide firms to grow successfully.
For example:
- A digital marketing agency helps a client develop an effective email marketing strategy. The agency has been thinking of adding other modes of digital marketing, like social media. This is an opportunity for the agency to develop a new section of their business without having to create a marketing plan because they can reach out to existing clients.
Being open to opportunities, knowing when to look for them, and knowing how to act on them can boost a firm's success.
Documenting past opportunities can help create a plan on how to capitalise on future ones.
4- Challenges
- The final step in SWOC analysis is acknowledging challenges.
- this is how SWOC and SWOT analysis differ because SWOT analysis focuses on threats.
- Challenges are similar to threats but have the chance of being overcome.
- Threats have the potential to damage a firm, but challenges often already exist and need to be handled.
- This step is crucial.
- If you have already examined the strengths, weaknesses, and opportunities but have skipped assessing the challenges, you may be on the path to failure.
- Challenges can greatly undermine any progress you have made, so by ignoring this step you have opened yourself up to potential failure.