If you are looking for a tool to help build a more assertive strategic planning, how about using SWOT Analysis? It is a tool to analyze the internal and external environment of a digital business. SWOT analysis is an example of how to start your strategy.
This way, it is easier to prepare a more realistic plan, that is, one that is in accordance with the scenario in which the company finds itself at the moment. So, if you want to be successful in digital entrepreneurship, you need to invest your time in the practical application of this tool.
Therefore, we decided to present you the step-by-step instructions for using SWOT Analysis, as well as an example of the application of this tool in your digital business. Are you curious? Want to know more about it?
What is SWOT Analysis for?
It is important to mention the function of SWOT Analysis for a digital business. Thus, it is easier to understand in which possibilities you can apply this management tool. See the main objectives of the SWOT Analysis below.
Identify strategic positioning
First, we can highlight that this tool helps in locating your strategic position. In this way, it is possible to identify your position in relation to your customers, competitors and suppliers. Thus, you can understand if you are a reference or need to change your actions to improve your strategic position in the market.
Offer more attractive products and services
When you can identify strengths and weaknesses as well as threats and opportunities. It is possible to understand if the products or services that your company offers to the market are meeting the needs of your persona.
And, if necessary, improvement actions must be applied so that the products or services are more attractive to consumers. Through this tool, you can also find opportunities to develop solutions to reach new markets.
Identify solutions to problems
SWOT Analysis can help you gain insights to solve digital business problems. This is because it presents a current systemic view of your company. That is, you can understand both the internal and external scene. This makes it easier to identify problems and find solutions to them.
Prepare strategic planning
The information provided by the SWOT Analysis can help you develop a more realistic strategic plan. In other words, that it is in accordance with the internal and external issues of your digital business. Thus, you can make more assertive decisions, such as reducing the impact of weaknesses by taking advantage of opportunities offered by the market.
How to do the SWOT Analysis?
Now we are going to show you the step-by-step steps to make the SWOT Analysis in practice. This way, you can apply this tool in your digital business to analyze the company as a whole, the department, the product or service, or even the employees. Come on!
Sketch SWOT Analysis
The first step to develop the SWOT Analysis is to draw a 2×3 matrix in a document, a spreadsheet, a paper, a board or in a specific software. This matrix must contain spaces to write down strengths, weaknesses, opportunities and threats, respectively.
So that you can better visualize this tool, see the SWOT analysis example, below:
Fill in the tool matrix
The next step is to analyze both the company’s internal and external scenario to verify the strengths (competitive advantages), weaknesses (competitive disadvantages or weaknesses), opportunities (variables that make the scenario favourable) and threats (elements that make the scenario unfavourable).
With this information in hand, just fill in the matrix so that the data is visible to all team members who are analyzing the company, department, product or service or employees.
See a practical example of this process, below:
– Training of employees;
– Lack of employees;
– Launch of a new technology;
– Economic crisis;
Analyze matrix information and develop strategies
Now that you know the internal and external variables that affect your digital business, it’s time to analyze them. Remember that it is not enough just to list this information, it is necessary to verify how to make the best use of it.
Therefore, at this moment, you need to understand what the forces that can leverage the opportunities are. For example, a company having a consolidated brand can help to enter a new market.
It is also necessary to verify which forces can minimize threats from the external environment. In this case, having a variety of products can reduce the impact of rising input prices. Since the increase does not always affect all manufactured products.
Furthermore, it should be analyzed which weaknesses can hinder the taking of opportunities. For example, having an unqualified workforce can harm the company to use the new technologies offered by the market.
Finally, it’s essential that you check out which weaknesses can maximize threats. That’s because they can greatly affect the functioning of your digital business. In this case, if you only have one supplier, the increase in input prices can bring a lot of headaches.
Once you’ve analyzed the information, you’re ready to create action plans to leverage strengths, correct weaknesses, seize opportunities, and mitigate threats. Remember, you too can turn threats into opportunities. For this, it is enough to have a good systemic view of your digital business and the market.
SWOT analysis: example of how to apply this tool in your digital business
Imagine you have a digital business, specifically an online course on affiliate marketing. And the time has come to make your strategic planning.
Therefore, you decided to use SWOT Analysis as a tool to obtain the necessary information to build your action plans.
Furthermore, see below how the practical application of this tool would be in your digital business.
– Quality video lessons;
– Unknown brand on the market;
– Popularization of distance education;
– Excess of competitors;
After you’ve done the SWOT Analysis, just cross the information as we explained in the previous topic and create strategies to ensure that your online course is a sales success. For example, you can use your image as an expert on the course subject to make your brand known.
Like this? You must use your social networks to create authority and, at the same time, attract followers who are interested in consuming the content you publish. That way, it’s easier to offer your online course to them later.
Enjoy and see, in the video below, how to structure a successful online course
Furthermore, having a good course hosting platform can also help make your brand known, as well as differentiate your course from competitors in the market. In this way, you use strength to eliminate weakness and a threat.
By the way, do you already know HeroSpark? Through its features, it is possible to publish your video lessons, deliver certificates, and apply online tests, among others.