SWOT the heck am I doing?

I find myself examining markets and communities while developing a plan to open some food-related businesses. As usual, I am focused on the neighborhoods and communities surrounding the proposed concept and evaluating what will and what won’t work. While I have my own ways of doing this, there is an academic word for it called “SWOT.” It stands for Strengths, Weaknesses, Opportunities, and Threats. It has been around since the 60’s when some Harvard’s brains concocted it. I’m willing to bet they never opened or owned their own businesses (confirmed) but that’s a topic for another post.

Conducting a competitive analysis using a SWOT analysis framework can help businesses understand their own strengths and weaknesses in relation to their competitors. Here’s a step-by-step guide on how to conduct a competitive analysis using the SWOT analysis framework:

1. Define the objective of the analysis: Determine what you hope to achieve through the analysis, such as identifying opportunities for growth or potential threats to your business.
2. Identify your competitors: Make a list of all the businesses that you consider to be your direct competitors.
3. Conduct research: Gather information on each competitor, including their product offerings, pricing strategies, marketing efforts, customer base, and overall reputation. This can be done through online research, visiting the competitors’ locations, and talking to customers and industry experts.
4. Create a SWOT matrix: Use a four-quadrant matrix to organize the information you have gathered on each competitor. The top two quadrants should list your competitors’ strengths and weaknesses, while the bottom two quadrants should list potential opportunities and threats.
5. Analyze strengths: Identify what your competitors are doing well and what sets them apart from your business. Determine how they are meeting the needs of their customers and how they are positioning themselves in the market.
6. Analyze weaknesses: Determine where your competitors are falling short and where you may have an opportunity to improve. Look for gaps in their product offerings, areas where they are not meeting the needs of their customers, and where they are vulnerable to competitive threats.
7. Identify opportunities: Determine potential areas for growth in the market, such as emerging trends, unmet needs, or untapped customer segments. Look for areas where you can differentiate yourself from your competitors.
8. Identify threats: Determine potential threats to your business, such as new competitors entering the market, changing customer preferences, or economic factors that may impact your business.
9. Develop a strategy: Use the insights gained from your analysis to develop a strategy for your business. Determine how you can capitalize on your strengths, address your weaknesses, take advantage of opportunities, and mitigate potential threats.

By conducting a competitive analysis using the SWOT analysis framework, businesses can gain a better understanding of their competitors and their own strengths and weaknesses. This analysis can inform strategic decision-making and help businesses stay competitive in their industry.