Low brand awareness (W) is improved by online advertising campaigns amid consumer interest in online shopping (O).
In turn, it cannot be ruled out that a high percentage of returns (W) will make online sales (O) unprofitable due to high logistics costs. Delivery and return conditions may be complicated or unacceptable in terms of price for the buyer. Because of this, it will not be possible to develop a promising niche. The required actions of management - when moving sales online, work out mass delivery and return schemes for goods without shifting costs and labor costs to customers.
It may also turn out that due to low profitability (W), the company does not have enough money to implement a quality advertising campaign for online promotion (O). The required management actions are to consider options for attracting borrowed funds or revise the investment strategy so as not to miss the opportunity to promote through online channels in a promising niche.
S and T connection
Used to determine how strengths can protect the company from threats or reduce their impact. Thus, at a low price (S), some increase in the price of the product due to more expensive import of raw materials (T) may be quite acceptable for the target audience of buyers. Conventionally speaking, 100 or 120 rubles for a T-shirt is a small difference, but if the price increased from 1000 to 1200, the difference would be significant. Beautiful design (S) will help withstand competition from Asian companies (T). The required management actions are to maintain the range in a low price category, without losing sight of design trends.
Used to understand how weaknesses can increase finland telegram data threats. For example, if there is a shortage of qualified personnel (T), the quality problem (W) can become even more serious. The required management action is to increase wages (improve the benefits package) to attract experienced and skilled workers.
Also, dependence on imports (T) can further reduce profitability (W). The required management actions are an accelerated search for suppliers on the domestic market, revision of contracts with foreigners in favor of larger purchases at a discount.
When planning events, it is important to have an idea of what resources or actions of specific employees will be used to carry out the work. This is precisely why it is necessary to know the reasons that influenced the emergence of one or another factor of the SWOT analysis of the enterprise (according to the examples given above).
SWOT Analysis of a Company: What is it and How to Conduct It - Image 6
Where else is SWOT analysis used?
The main area of using SWOT analysis is to evaluate the activities of a commercial enterprise. The main goal is to determine actions aimed at ensuring stable business development, taking into account four groups of factors. But studying the activities of companies is far from the only example of SWOT analysis. This concept can also be used to study: