Post Image
  What is SWOT analysis? To answer this, we must first look at the full meaning of the acronym, SWOT. SWOT means Strength, Weakness, Opportunity, and Threat. So to simply put, SWOT Analysis means studying, examining, and understanding a subject or an object through its strengths, weaknesses, opportunities, and threats.
Read more about Business
In the business world, this is so true for every business, whether great or small. It is very important for businesses to know their strengths to optimize them, and know their weaknesses to make up for them. Also, businesses ought to know their opportunities, so that they can seize them, and know their threats, to eliminate them. In this article, I am going to analyze how businesses can grow using SWOT analysis.

  1. Strengths

One of how businesses grow is by identifying their strengths. Strengths are the internal factors that give you a competitive edge over your competitors. These strengths include a well-experienced workforce, access to financial and human resources, expertise and exposure, popularity, large followership on social media platforms, and so on. These are also called added advantages, which you can capitalize on to get ahead. Therefore, your strengths are meant to be optimized.

  1. Weaknesses

Another way to analyze your business to grow is through identifying its weakness. The aim of understanding your business weaknesses is so that you can manage them by amplifying the strength of the business. Some business weaknesses could include lack of capital, low access to resources, poor staff strength, lack of staff expertise and professionalism, and so on. How best can you fix your weaknesses? First, it is by exploring opportunities that help in addressing it. For example, if your business is experiencing a lack of capital, then you have to look for grant and loan opportunities. Or if you are facing the problem of expertise, this means you have to retrain or employ trained employees that can help your business grow.
Sign up to the Connect Nigeria daily newsletter

  1. Opportunities

Business opportunities are largely external factors that you can capitalize on to advance business growth. These are favourable environmental factors that are available outside your business domain. These opportunities could be proximity to markets, large customer base, closer access to raw materials, unexplored markets, new inventions, new markets, new technology, training programs, partnerships, a diverse marketplace and a change of government, business seasons, and so on, etc. The goal of understanding your opportunities is to seize them. For example, if you are into a seasonal business like selling of raincoats, the period of March to October is a rainy season, which presents you an opportunity to boost sales. Another opportunity you can also spot in business is where there are markets that are yet to get your services, solutions, etc.

  1. Threat

These are also external factors that can cause your business to face decline, stagnation, and negativities. These should not be confused with weaknesses. Business weaknesses can be addressed, but threats are often beyond your control. Examples include conflicts, inconsistent government policies, rising competitors, change in government, and so on. These can be improved by developing coping mechanisms, such as staying afloat with cutting down the number of products, to avoid waste, downsizing, seeking redress when it comes to change in policy, lobbying for favourable economic policies, relocation, and so on. Featured Image Source: SMB Friendly
Got a suggestion? Contact us: editor@connectnigeria.com
You might also like:
This article was first published on 17th December 2021

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

Comments (354)

354 thoughts on “How To Grow Your Business Through SWOT Analysis”

Leave a Reply

Your email address will not be published. Required fields are marked *