A SWOT analysis evaluates a business's Strengths, Weaknesses, Opportunities and Threats. Although a SWOT analysis could be ordered regarding a retailer as a whole, a retailer could also commission a SWOT analysis to address the potential gains and losses involved with launching a new clothing line, opening new branches or even changing distribution methods. SWOT analyses have many applications in addition to these.
Strengths
1. When generating the strengths portion of the SWOT analysis, address and list the internal components that give your business a competitive edge or are its high-performing areas. For example, this section would list a large customer base, high brand recognition, a durable product line, an efficient distribution chain, low staff turnover and low overhead. These examples could apply to any retailer, but they would only appear in the strengths section because they are positive attributes about the internal business environment.
Weaknesses
2. When generating the weaknesses portion of the SWOT analysis, address and list the internal components that are performing at a sub-par level or are simply hindering your business from performing better. For example, this section might list poor customer service, long waiting lines, a small amount of inventory, faulty product lines and low staff morale. These examples could apply to any retailer, but they would only appear in the weaknesses section because they are negative attributes about the internal business environment.
Opportunities
3. When generating the opportunities portion of the SWOT analysis, list the external features that would provide your business an opportunity to grow or expand. For example, this section might list less strict international labor laws, a decrease in the price of raw materials, fewer competitors, local population growth or a growing economy. These examples could apply to any retailer, but they would only appear in the opportunities section because they are features in the external business environment that the retailer could take advantage of.
Threats
4. When generating the threats portion of the SWOT analysis, list the external features that could possibly harm the growth or current status of your business. For example, this section might list a declining early-adopter customer base, more competitors entering the marketplace, rising business tax rates, manufacturers discontinuing product lines or shrinking of overall demand. These examples could apply to any retailer, but they would only appear in the threats section because they are features or elements in the external business environment that the retailer may struggle to adapt to or struggle to compete against.
How to build the SWOT Analysis
5. A SWOT analysis should be formatted to fit in a two-by-two chart where the strengths and weaknesses are listed in the top two boxes and the opportunities and threats are listed in the bottom two boxes. Make sure the strengths and opportunities are placed in the left two boxes and the weaknesses and threats are in the right two boxes.
Strengths
1. When generating the strengths portion of the SWOT analysis, address and list the internal components that give your business a competitive edge or are its high-performing areas. For example, this section would list a large customer base, high brand recognition, a durable product line, an efficient distribution chain, low staff turnover and low overhead. These examples could apply to any retailer, but they would only appear in the strengths section because they are positive attributes about the internal business environment.
Weaknesses
2. When generating the weaknesses portion of the SWOT analysis, address and list the internal components that are performing at a sub-par level or are simply hindering your business from performing better. For example, this section might list poor customer service, long waiting lines, a small amount of inventory, faulty product lines and low staff morale. These examples could apply to any retailer, but they would only appear in the weaknesses section because they are negative attributes about the internal business environment.
Opportunities
3. When generating the opportunities portion of the SWOT analysis, list the external features that would provide your business an opportunity to grow or expand. For example, this section might list less strict international labor laws, a decrease in the price of raw materials, fewer competitors, local population growth or a growing economy. These examples could apply to any retailer, but they would only appear in the opportunities section because they are features in the external business environment that the retailer could take advantage of.
Threats
4. When generating the threats portion of the SWOT analysis, list the external features that could possibly harm the growth or current status of your business. For example, this section might list a declining early-adopter customer base, more competitors entering the marketplace, rising business tax rates, manufacturers discontinuing product lines or shrinking of overall demand. These examples could apply to any retailer, but they would only appear in the threats section because they are features or elements in the external business environment that the retailer may struggle to adapt to or struggle to compete against.
How to build the SWOT Analysis
5. A SWOT analysis should be formatted to fit in a two-by-two chart where the strengths and weaknesses are listed in the top two boxes and the opportunities and threats are listed in the bottom two boxes. Make sure the strengths and opportunities are placed in the left two boxes and the weaknesses and threats are in the right two boxes.
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