Definition and Examples of SWOT Analysis

For those of you who are in college and majoring in business, you will understand very well what is meant by SWOT analysis or SWOT analysis, but for ordinary people, you will definitely ask what is SWOT analysis?

In order to make it easier for you to learn and understand the material regarding SWOT Analysis, here we try to summarize a complete review which includes the understanding of what is meant by a SWOT analysis, its objectives, benefits / functions, and examples in everyday life.

What is SWOT Analysis?

The definition of SWOT analysis is an analytical method that is applied to the process of evaluating strengths, weaknesses, opportunities and threats in a company, organization or individual.

While the notion of ‘SWOT’ is a strategic planning method used to evaluate strengths, weaknesses, opportunities, and threats in projects or business speculation. These four factors make up SWOT (strengths, weaknesses, opportunities, and threats).

The purpose of the SWOT analysis is to determine the internal factors (strengths and weaknesses) of the company as well as external factors (opportunities and threats) that the company is currently facing. Rangkuti (2006).

Internal factors in the SWOT analysis are strengths and weaknesses. Meanwhile, the external factors in the SWOT analysis are opportunity and threat.

SWOT analysis is a form of systematic analysis of company management or within the organization to assist efforts in preparing a good plan to achieve goals, both long-term goals and short-term goals.

Not only that, SWOT analysis can also be interpreted as a form of situational analysis as well as conditions that have a descriptive nature. This analysis places situations and conditions into input factors, then grouped them with their respective contributions.

The users of this analysis must know that the SWOT analysis is only an analysis made to describe the situation at hand, not a magical analysis tool that can provide a solution to the problems at hand.

Interpretation of SWOT analysis according to experts

To make it clearer to understand the meaning of SWOT analysis, there are several experts who express their opinions as follows:

According to Freddy Rangkuti (2013)

SWOT analysis is a systematic identification of various factors to formulate company strategy. This analysis is based on logic that can optimize strengths and opportunities, but at the same time minimize weaknesses and threats.

According to Sondang P. Siagian

SWOT analysis is one of the most powerful analytical instruments if used properly after it is widely known that SWOT is an acronym for the words strengths, weaknesses, opportunities, and threats, but in English.

According to Philip Kotler (2014)

SWOT analysis is an instrument for analyzing the company’s internal and external environment. This analysis is based on the assumption that an effective strategy will minimize weaknesses and threats. If applied accurately, this simple assumption has a huge impact on the design of a successful strategy.

According to Ferrell and Harline

SWOT analysis is what will explain whether the information indicates something that will help the company achieve its goals or indicates that there are obstacles that must be faced or minimized to fulfill the desired income.

According to Galavan (2014)

SWOT analysis (Strength, Weakness, Opportunity, and Threat) is an analytical method to obtain useful and effective strategies that are implemented according to public conditions and market conditions at that time.

Opportunities and threats are used to determine the external or external environment and then the strengths and weaknesses are obtained through internal or internal analysis.

SWOT Analysis Model and Matrix

SWOT analysis assesses factors outside the company (opportunities and threats) with factors within the company (strengths and weaknesses).

Factors within the company are included in a matrix called the internal strategic factor matrix or IFAS (Internal Strategic Factor Analysis Summary).

Meanwhile, factors from outside the company are included in a matrix called the external strategic factor matrix or EFAS (External Strategic Factor Analysis Summary).

The SWOT matrix is ​​a tool used to compile the company’s strategic factors. This matrix can clearly describe how the external opportunities and threats faced by the company can be adjusted to the strengths and weaknesses it has.

The following is an overview of the SWOT matrix table that you can see carefully.

The Purpose and Benefits of SWOT Analysis

SWOT analysis also has clear objectives and benefits, because this SWOT analysis is a method that is considered to be a very basic analytical method that is very useful for looking at a hat or a problem from the four different systems.

The results of the analysis are generally in the form of directions or recommendations to maintain strengths and to increase profits in terms of existing opportunities. by reducing deficiencies as well as avoiding threats.

If used properly, this analytical method will help to see sides that have been forgotten or unseen so far. If seen from the discussion above, the benefits of SWOT analysis are instruments that are useful for conducting strategic analysis.

This SWOT analysis has the role of being a tool to minimize the weaknesses that exist within a company or organization and reduce the impact of threats that arise and must be faced.

How to Make a SWOT Analysis

After understanding the meaning of a SWOT analysis from several experts, it turns out that a SWOT analysis has 4 components, the following is an explanation of the components and how to make a SWOT analysis correctly:

S (Strength / strength)

Is a situation that is part of the strength of the organization or company today. What must be done in this analysis is the company assessing the strengths and weaknesses of its competitors.

For example, if the company’s strength has advantages in the field of technology, then that advantage can be used to become a market segment that requires advanced levels of technology and quality.

When filling out a strength analysis, you can use the guide below:

  • What advantages does the company, organization or individual (self) have?
  • What makes a company or organization better than other companies or organizations?
  • What is unique about the company or organization?
  • What makes a company sell?
  • What do consumers see or feel that is an advantage?

W (weaknesses / weaknesses)

This is a situation that is a weakness of the company at this time. This is a way of analyzing weaknesses in the company and becomes a very important constraint and affects the development of the company.

When filling out a Weakness/weakness analysis, it can be filled in following the steps below:

  • What can be improved within the company or organization?
  • What are companies or organizations obligated to avoid?
  • What factors lead to lost sales?
  • What consumers see or feel is a weakness of the company or organization.
  • What should competitors do so that they can be better than the company or organization?

O (opportunities / opportunities)

This is a situation that is an opportunity for the organization or company at this time and provides an opportunity to advance for the company in the future. This is a way to look for opportunities or ways that the company can grow in the future.

When filling out the Opportunities analysis, you can fill it in following the steps below:

  • What opportunities can be seen?
  • What kind of trend developments are in line with the company or organization?

T (threats / threats)

SWOT analysis related to business threats is Threats (threats). Thears is a situation that analyzes the challenges and threats facing the company to deal with various environmental factors that are less favorable for the company and cause setbacks.

If it is not resolved immediately, it will become a barrier to the current and future development of the company. When filling out thears/threat analysis, you can try the guide below:

  • What obstacles are being faced at the moment?
  • What are the things that a company’s or organization’s competitors do?
  • What technological developments could pose a threat to the company or organization?
  • Are there any changes in government regulations that will pose a threat to the development of the company or organization

SWOT Analysis Example

The following are some examples of SWOT analysis, both SWOT analysis for yourself, organizations, service companies and trading companies. So that it is easier for you to understand, just take a look at the full review below:

Example of a SWOT Analysis of Yourself

  • Strengths: have the ability to design well, enjoy photography and watching horror films, easy to socialize and have good relations with friends, committed to what has been said, and hard worker who doesn’t give up easily.
  • Weaknesses: poor English language skills, difficulty making decisions quickly, impatient and careless, and poor financial support.
  • Opportunities: acceptance of CPNS job vacancies, many companies that need designers, and the support of friends and extended family.
  • Threats: many other workers who are more experienced, the spread of the KKN system, and the intense competition between undergraduate graduates in Indonesia.

Example of a Food Business SWOT Analysis

  • Strengths: well known to the public, affordable prices than competitors, strategic location, concept of place suitable for young people, available wifi, does not use MSG.
  • Weaknesses: many competitors, lack of innovation in food, less capital for business development.
    Opportunities: increased innovation and business partnerships are able to dominate the market.
  • Threats: the price of raw materials goes up, wifi is often disrupted, competitors are starting to copy the concept.

Small Business SWOT Analysis Example

  • Strengths: the product is ordered in large quantities, the workforce is large, the right suppliers from various regions.
  • Weaknesses: production to order, if there is no order, there will be losses.
  • Opportunities: developing types of products without intermediary trading companies, marketing online, accommodating more workers.
  • Threats: scarce raw materials, production decline if not monitored, low quality so customers reject.

That’s a little explanation about the SWOT analysis that Wikielektronika can review, to learn more about it, there are also books about SWOT that are scattered in all bookstores and of course very complete.

Not only that, if you want to get it in this type of file, there are also pdf SWOT analysis books or journals that can be downloaded on the internet which are commonly called online books.

Hopefully all the information contained can be received perfectly, so that it can help add information, insight, and knowledge for readers.

That’s a review about Definition and Examples of SWOT Analysis the parallaxcode.com team can describe. Hopefully the articles that we provide can be useful.