Strength, Weakness, Opportunity and Threats (SWOT) analysis is a comparative tool and a structured planning method that can be used by individuals or companies to assess their true worth and to map out a direction where their efforts will give maximum gain.
This is a tool that enables the staff and managers of a project or business venture to set objectives and goals as well as analyse any internal and external factors that may fovour or not favour the achievement of those goals.
A competitor SWOT analysis will definitely give the company a niche in the market as they will be in a position to compare themselves and their chosen competitors on the following levels.
These are basically the characteristics of a business that give it a higher advantage compared to its competitors. By analyzing the company’s core competencies, managers are able to make decisions on resource use and also have deliberate concerted effort towards projects that score highly on the strengths.
These are the factors that put a company at a disadvantage compared to its competitors. These are the loopholes that need to be sealed for a company to maximize gains and to reach its goal.
These enable a company to explore areas which can work to its advantage. This is a big consideration factor for the management to give a go ahead on any venture. If opportunities far outweigh threats and also if a company has more opportunities than its competitors, then they have the competitive edge they need to invest in the particular venture.
These are the trouble triggers in a project that could sometime be beyond the company control and could make a certain project be shelved for a while if the environment is too hostile for its take off. By comparing these with all the competitors, the company is able to gauge if it’s on a level playing field or the threats are unique to the company and make decisions on how to go about it.
In addition to a SWOT analysis, the competitor information spreadsheet gives a snapshot of how the company is performing compared to its competitors on the following areas; website, employees, annual sales revenue, net income, assets, liabilities, business value and stock value
In a nutshell, a competitive SWOT analysis is a planning and decision making tool that helps a company to find its strategic fit.
Here on our website you will find worksheets to help you work with SWOT Analysis.