From time to time, you will want to evaluate the strengths and weaknesses of your company. It should go even further than this. You should also take the time to identify your opportunities and your threats as well. You will want to look at both internal factors and external factors that can impact your overall business. This will help you to be able to better meet the needs of your business and be able to tackle any obstacles that come your way.
Start with Identifying the strengths and weaknesses. You will want to make sure that you are aware of your particular advantages and your weak points. Focus on the following:
- Be aware of the success factors for your particular industry
- Take a look at where your competitors fall when it comes to these factors
- Compare your competitors strengths and weaknesses with your own to determine your advantage
The success factors of a particular industry will vary depending on the industry. They include factors like:
- Marketing strategies
- Sales effectiveness
- Workforce skills
- Employee dedication
Sometimes, it helps to get some input from your employees, suppliers, and even your customers.
Now, you want to identify your opportunities and threats. This can prove to be quite challenging at times. You will want to determine the following:
- What are the opportunities that can help to increase the profitability and productivity of your company?
- Is there an increased demand for what you have to offer?
- Are there any other markets that you may be able to serve?
- Are there new products or services that could better meet the needs of your customers?
- How strong are your competitors?
- Is the market that you are serving segmented?
- How stable is your pricing structure?
- Do you have products or services that are becoming obsolete?
- Is your market size shrinking?
- Are there new competitors coming into your area?
- Are your supplier’s prices on the rise?
- How stable is the economy?
- Are there any pending mergers that you should be aware of?
When you conduct a thorough analysis of your business, you will be more prepared for obstacles that come your way. This type of analysis, along with proper management and planning, can help to stabilize your business in an ever changing economy.