Competitive Analysis for a Business: SWOT Analysis

By Anabel Kim

When building a business or company, it’s important to understand its standings in different categories compared to competitors. In this blogpost, we will discuss the significance of a SWOT analysis for a business and how to perform one.

What does SWOT stand for? 

S stands for strengths. First, analyze the company's strengths within a specific category. For example, if you are comparing your products’ sustainability compared to others, then identify what you’re doing well. To effectively compare, be sure to look at various resources for data.

W stands for weaknesses. Opposite to the strengths category, identify where your business falls short in comparison to competitors. It’s important to consider multiple factors.  

O stands for opportunities. At this step, compare the strengths and weaknesses you previously identified. Then, brainstorm on how you can fill in the gaps where the weaknesses lie. Creating a list of short-term and long-term goals can help you specify and narrow your ideas, making them organized and therefore, more attainable. 

T stands for threats. Now that you have ideas on where you need to improve and how, it's also necessary to identify the most imminent threats to your business. Maybe its economic factors, competitive pricing, etc. Make sure you take these threats into account.

Congratulations, you have just completed your first SWOT analysis! You may be wondering when to use this analysis. Well, if you feel particularly stuck in your brand or business, it could be a great time to examine your competition and use the SWOT analysis. Or, even if sales are high and the company is doing well, a SWOT analysis could help you maintain that status. Use this method to pave a path toward achieving your objectives and sustaining long-term success.