Why Performing a SWOT Analysis Using PPT Template Is Mandatory For Every Business To Function?

SWOT Analysis is a business regulation anagram which stands for Strengths, Weaknesses, Opportunities, and Strengths. It is one of the most extensively used strategical tools which helps analyze a company from various angles rather than a single angle to give it a clear picture. In the context of business, SWOT Analysis Template helps an organization to carve out a suitable niche in the market as it helps in analyzing not only the company’s own position but also the position of its competitors. It is the most useful technique as it measures not only the strengths but also the weaknesses of the company and also distinguishes opportunities from threats that the company might face in the long run.

The first two variables of SWOT analysis (strengths and weaknesses) are internal to a company whereas the latter two variables (opportunities and threats) are external to a company.

Let us get to know these 4 variables in detail-

Strengths - Strengths refer to the positive attributes of a business that are internal to it and which it can control. It depicts in what fields the organization excels in that differentiates it from its competitors such as unique product, loyal customers, abundant resources, etc.

The strengths of the company are what that helps it to grow and flourish.

Weaknesses - Weaknesses are also controllable factors that prevent a company from functioning to its optimum level. They are those areas in which a company needs to improve to retain its competitiveness such as limited resources, unskilled workers/ employees, weak brand aesthetics, etc.

Opportunities - Opportunities are a summary of a company’s external factors that motivate it to grow and prosper within the marketplace. These include particular factors that are advantageous for a company and its growth in the marketplace.

For e.g., if company export products, then in the case of a reduction in tariffs, it can easily transport its products from one country to another.

Threats - Threats are external uncontrollable factors that prove quite hazardous for the company’s growth. These threats can be any ranging from political, social to environmental.

For e.g. the Great Depression was one of the worst economic downturns in the USA’s history which forced many companies to shut down as they were unable to compete in such an environment.

Similarly, changes in social trends can also prove quite detrimental to a company. The companies that deal with products producing waste and toxic gases have to suffer constant revolts from the customers who believe in protecting the environment.

The value of SWOT Analysis Template is thus imperative to every business as it is rightly said-

"It is important to know the art of strengthening your strengths which would enable to weaken your weaknesses and also lay the foundation for availing the opportunities and negating the threats that come your way."

Importance of SWOT Analysis Template

Formulating Robust Strategies - Since SWOT analysis helps a company to analyze its potential threats as well as its corresponding opportunities, it gives it a chance to formulate robust strategies and policies as to how it wants to operate in the marketplace.

The formulation of these policies proves quite advantageous for the company in the long run.

Also, a SWOT analysis helps a company scrutinize its own strengths and weaknesses giving it a competitive advantage over its rivals.

Allocating Resources Efficiently - Each and every company, even the largest ones have abundant resources such as increased production capacity, high amounts of capital, etc. Evaluation of the strengths by the way of SWOT analysis helps the company to allocate its resources in such a way that it leads to an increase in its growth and revenue.

By conducting a SWOT analysis, the management team can discover the competitive strengths of the company which might not have been utilized to its fullest potential in the past.

Identifying Growth Opportunities - Every company wants to grow and prosper which requires looking for opportunities to expand the distribution network of the product, reaching more customers, producing various different categories of products, etc.

SWOT-analysis helps achieve all of this. It probes the managerial staff to discover more opportunities for the company’s growth and expansion which might have been ignored otherwise.

Identifying and dealing with Potential Risks - The word threat is another term for risk- a circumstance that is totally uncontrollable and has a negative impact on the company’s functioning.

The biggest risk that a company faces is from its competitors. However, changes in customer's tastes and preferences, natural calamity, etc. are also some of the important threats that a company should keep a track of.

SWOT-analysis helps the company to prepare for all these risks well in advance.

Planning for future prospects - The most powerful and useful feature of SWOT analysis is that it helps a company plan its future prospects by formulating a strategic plan. Without an effective strategic plan, the company will wander aimlessly or operate without any kind of growth and development.

Failing to retain customers because the product is not that competitive is like a major setback to the company. Therefore, SWOT analysis using PowerPoint templates is very important as it helps to analyze future opportunities to help the company deliver a high-quality product in the marketplace.

Final Verdict

SWOT analysis plays a vital role in shaping one’s business strategy as it helps the company to see things from a whole new perspective. It may lead to discovering new opportunities that might not have been explored earlier or help to pinpoint those threats which were overlooked by the company.

Jenna Davis is a Business Analyst at a href ="https://www.slideteam.net/"SlideTeam, the world's largest supplier of innovative, creative and highly effective PowerPoint templates. She is passionate to write on business-related topics.