How To Develop SWOT Analysis For An Online Business

I believe performing SWOT analysis helps all businesses in developing an action plan. SWOT analysis means analyzing the strengths, the weaknesses, opportunities and the threats facing your business. Strengths and weaknesses are within the internal environment of the business and affect your online business directly.
Opportunities and threats are within the external environment of the business which we do not have a direct control. I am going to guide you in developing an effective SWOT analysis for your online business.

Take a piece of paper and divide it into four quarters. Labels the sub divided quarters with strength, weakness, opportunity and threat. Am going to guide you in making a list of actions under each label.

Strengths

These are the factors that work to the advantage of your business. To identify the strengths your online business has you will need to answer number of questions which include: which activities makes my online business stand out from the rest? What makes me have a competitive edge over competitors? What activities are working as planned for my online business? What does my online business do best? The answers to this questions should be listed on the strengths’ column. After analyzing the questions and finding answers research for ways that will help you in improving or enhancing your business strengths. Identifying your strengths will help you in developing a better sales strategy.

Weaknesses

These are the factors that work against your online business. To develop a list of weaknesses, answer the following questions;: What do clients and competitors have against my business? What areas can be improved about my business? What areas is my business poor? Answer the questions with a list of actions that you will use to effectively eradicate the weaknesses of your business. This will help you in strengthening the image of your online business.

Opportunities

Opportunity means the untapped potential in the business environment that your business can exploit to its advantage. To identify opportunities within the business environment, you will be required to evaluate the following questions; what are the weaknesses of my competitors in the online business world? What innovative developments are happening in the business world? What new feature can I use to improve my business? What consumer need are not addressed by the current market? Upon identifying opportunities, your business has develop a plan that will guide you towards capitalizing on the opportunities.

Threats

Threats are factors within the external business environment that conspire against your business. In identifying threats, you must answer the following questions: what policies hinder the growth of my online business? What changes in the online world could destroy my business? What competitors are doing better that am not doing in business? The questions will help you come up with ways of ideas of activities to engage in to minimize the level of threat.
Hopefully this article will help you develop an effective list of SWOT analysis for your online business.

No comments:

Post a Comment