“The essence of strategy is choosing what not to do.” –Peter Drucker
What is SWOT Analysis?
SWOT Analysis, which is a type of analysis that can be applied to almost all areas of business and private life, Strengths & Weaknesses & It consists of the initials of the words Opportunities and Threats. It is a type of analysis that is useful for evaluating the internal and external factors as a whole, together with the current situation, and for tactical/strategic decisions to be taken in the future.
Internal Factor - Strengths: Includes advantageous aspects, resources, abilities and general strong points.
Internal Factor - Weaknesses: Includes areas of development, shortcomings and disadvantages compared to competitors/alternatives.
External Factors - Opportunities: Potential advantages in the external environment for growth and development.
External Factors - Threats: These are factors that arise from the external environment and can negatively affect the performance of the organization.
Below is the SWOT Analysis Quandrant Example
Main Areas of Use of SWOT Analysis
Supplier comparison
Market Analysis
Investment Analysis
Benchmarking
Strategy creation and evaluation
Integration into new developments
Data analysis
Market positioning
Resource planning
Capacity analysis
Cost analysis
Risk management
Value analysis
etc.
How to Perform SWOT Analysis?
Preparation Phase: Purposes and definitions are made.
Meetings: Topics are determined with the participation of all relevant parties.
SWOT Stages are detailed: Detailed study is carried out on each of the 4 aspects.
Transformation of the analysis into a Quadrant: The collected information is entered into the Quadrant and the picture emerges.
Analysis Evaluation:By evaluating the analysis performed, the objectivity of the analysis is ensured.
Strategy development:The strategy creation/development process is carried out within the framework of analysis.
Implementation: Decisions taken during the process are put into practice.
Monitoring and Evaluation: The processes and results of the decisions taken are checked at specified intervals.
Risks of SWOT Analysis
Subjectivity: If the analysis is done with subjective opinions, the results may be unrealistic.
Outdated Data:Analysis performed with old or misleading data may lead to errors.
Analysis Paralysis: Too much analysis can delay or stop decision making.
Oversimplification: Simplifying complex problems can be misleading.
Prejudices:Pre-existing biases can disrupt the objectivity of the analysis.
Overlooking Variables: Failure to include all relevant factors in the analysis may paint an incomplete picture.
Strategic Inaction: Failure to put the results of the analysis into action may result in loss of effort.
Over Focus: Excessive focus on some factors in the SWOT Analysis may lead to overlooking other important elements.
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