HOW TO DO SWOT ANALYSIS

HOW TO DO SWOT ANALYSIS

A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business strategy, whether you’re building a startup or guiding an existing company.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.

Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.

When you take the time to do a SWOT analysis, you’ll be armed with a solid strategy for prioritizing the work that you need to do to grow your business.

You may think that you already know everything that you need to do to succeed, but a SWOT analysis will force you to look at your business in new ways and from new directions. You’ll look at your strengths and weaknesses, and how you can leverage those to take advantage of the opportunities and threats that exist in your market.

Here are a few questions that you can ask your team when you’re building your SWOT analysis. These questions can help explain each section and spark creative thinking.

Strengths

Strengths are internal, positive attributes of your company. These are things that are within your control.

• What business processes are successful?
• What assets do you have in your team, such as knowledge, education, network, skills, and reputation?
• What physical assets do you have, such as customers, equipment, technology, cash, and patents?
• What competitive advantages do you have over your competition?

Weaknesses

Weaknesses are negative factors that detract from your strengths. These are things that you might need to improve on to be competitive.

• Are there things that your business needs to be competitive?
• What business processes need improvement?
• Are there tangible assets that your company needs, such as money or equipment?
• Are there gaps on your team?
• Is your location ideal for your success?

Opportunities

Opportunities are external factors in your business environment that are likely to contribute to your success.

• Is your market growing and are there trends that will encourage people to buy more of what you are selling?
• Are there upcoming events that your company may be able to take advantage of to grow the business?
• Are there upcoming changes to regulations that might impact your company positively?
• If your business is up and running, do customers think highly of you?

Threats

Threats are external factors that you have no control over. You may want to consider putting in place contingency plans for dealing them if they occur.

• Do you have potential competitors who may enter your market?
• Will suppliers always be able to supply the raw materials you need at the prices you need?
• Could future developments in technology change how you do business?
• Is consumer behavior changing in a way that could negatively impact your business?
• Are there market trends that could become a threat?

EXAMPLE

SWOT analysis Aviation Industry in India

Strengths in the SWOT analysis of Aviation Industry in India

The strengths of an industry or the businesses are mainly those things which make them unique in the market and also keep them far ahead of their competitors. The strong areas of the Indian Aviation Industry are as follows-

·         The strength of the Product– For every successful business, this is one of the most common objects that play a huge role in increasing the strength of the business. To the aviation industry in India, the product is air travel which is growing every day. The increased propensity to fly has provided immense growth to the industry while the huge population of the country plays the rest of the part.

·         Consolidation in Aviation Sector– the Indian aviation industry is growing because of the alliance it has got to promote its substantial growth.

·         Low-Cost Service– There are lots of airline services which are bringing the opportunity of flying at comparatively low cost than other plush airline services. Due to that, people try to fulfill their dream to fly.

·         Changing Lifestyle of People– Lifestyle of people is regularly changing, and the disposable income has also increased. This gives the opportunity of the enjoying the lavish way of traveling, flying.

·         The Labor Cost Is Low– in India, the labor cost is quite low, that is $30-35 per man for an hour. This is $55-60 in the Middle East and South-East Asia and even more in the USA and Europe.

·         When Safety Is Concerned– This is one of the safest modes to travel in comparison to others and also the quickest. People will prefer it more.

·         Highly Trained Staff– No matter the ground staff or the flight attendants, the Indian Aviation Industry is getting hyped because of the crew members of the industry.

·         Dealing with Advanced Technology– From fuel-efficient transport to the advanced and automated ground process, technological advancement has made this industry one of the fastest growing industries in the world.

Weaknesses in the SWOT analysis of Aviation Industry in India

Weaknesses mean these are the areas where the industry has scopes to do better than before. The places of improvement in this industry are-

·         Personal importance Gets More Importance– Each Airline Company deals with their own problems and concentrates only on their own issues instead of thinking about the entire industry of India.

·         Lack of Infrastructure– It is true that the Government is trying their best to get better-planned airports and top class infrastructure, still there are certain loopholes.

·         Fixed Revenue– This is a weakness of aviation industry in comparison to other transport industries. Actually, once the flight goes, the empty seat will remain empty.

·         Still Quite Expensive– No matter how the airline companies are providing cheap offers, still flight tickets are expensive and also require pricy disbursements.

Opportunities in the SWOT analysis of Aviation Industry in India

These are the areas which can be used to gain more revenues for the business. Some essential opportunities of this industry are as follows-

·         Improvement in Investment– For the green field airport the Government has approved 100% FDI of which 49% is for domestic airlines. Foreign investments up to 74% are permissible for direct investment.

·         Technological Advancement– The more technology will keep on blessing, the facilities like automated ground processes, fuel-efficient aircrafts, etc. are booming around.

·         Increased Revenue– The in-flight customer-friendly services have been increased, and the other value-added products will also raise the revenue as customers have to pay for those separately.

Threats in the SWOT analysis of Aviation Industry in India

These are the factors for a business which bring jeopardies for the industry and decline the growth of it. Some of the threats to aviation industry in India are-

·         Economic Downturn– A global economic slump can affect the growth of the aviation industry as it will disturb the leisure traveling along with business traveling.

·         The threat of Terrorist Attack– Seeing the situation of the world; this is always a great risk for the flights and overall aviation industry.

·         Increasing Cost of Fuel- Though fuel-efficient airlines are emerging, still maximum airlines are dependent on fuel. The cost is increasing which will inevitably make the flights more expensive.

·         Shortage of Skilled Manpower– This is a real trouble as skilled manpower like professional ground staffs, cabin crew, flight attendants, and pilots are not highly available.

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