Step #3 – SWOT Analysis for an Effective Strategic Plan

SWOT AnalysisNow that you have gathed market and industry information and determined who should be involved in the planning process, you can begin by synthesizing the information with your performance. SWOT Analysis consists of evaluating your Strengths, Weaknesses, Opportunities and Threats. The goal of this process is to uncover the Strengths that you can leverage, the Weaknesses that you should address, the Opportunities in the industry or based on your competition that you can take advantage of, and the Threats, both present and future, that may derail your success.

By capturing this information you are now taking data about your industry, market and competition and assessing the impact that it will have on your business both now and in the future. Understanding your competition and what is driving their success or growth is an important aspect of formulating your own plan. Knowing how and where to compete with your strongest competitor will improve the quality and viability of your plan. This valuable information will help you keep your plan grounded with the reality of your surroundings.  With this information, you are now ready to begin developing a Strategic Plan.