Back to Basics: Crafting a Quality SWOT Analysis

Once a year or so, I like to look back on marketing efforts for the previous year. This could mean a lot of things; reviewing win rates, assessing strategy, analyzing ROI. It’s also the perfect time to dust off your SWOT analysis and update it.

We’re going back to basics today, talking about what a SWOT analysis is, how to use it, and how to write one. Bonus – there’s a freebie SWOT analysis worksheet in the resource library!

What is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It’s an analysis of internal and external factors that affect your marketing and sales strategies.

Internal Factors

Internal factors, the Strengths and Weaknesses of the analysis, are those that your company has control over. These might include things like unique or proprietary processes/software that your company uses (strength), or limitations on available resources (weakness).

Pro tip: When listing your strengths, try to go beyond things like “customer service” or “project management skills” and list the why instead. For example:

If project management is a core strength of your company, figure out how and why you’re so good at it. Do you have stellar processes in place to make sure everything happens on-time and without a hitch? Do you rely on a specific program to increase coordination and improve your project management? Does your team have crazy-good communication skills? List those specific things as deeper strengths, and you’ll find more value in your SWOT analysis.

The same idea goes for weaknesses, too. Think about where you fall short, then identify why – and write that down.

 

External Factors

External factors, the Opportunities and Threats sections of the analysis, are those that happen outside of your company. You can’t control these factors, but you can capitalize on opportunities and make a plan to mitigate threats.

External factors are often a double-edged sword. What might be an opportunity one year may become a threat the next. For example:

• Market shifts/demands – if your company specializes in the design of data centers, and the market is inundated with new tech companies that need them, you’ve got an opportunity. But if the market shifts again after all those new tech companies have sufficient space, you may see a lull in your market and a threat to your cash flow.
• Economic vitality – we have no control over the economy, and in the AEC industry, that can be a rough storm to weather. When the 2011 recession struck, new development and building slowed to a crawl. Competition over projects increased, and many companies faced the threat of being forced to downsize or close their doors. When the economy is healthy, development increases, and you have opportunities to expand or explore new markets.

 

How to write (or update) your SWOT Analysis

Write everything (seriously, everything) down.

If you’ve never written a SWOT analysis before, head on over to the free resource library and download a copy of my SWOT worksheet.

Try not to filter yourself on the first draft. If you think your firm’s BIM capabilities, project management, or customer service are your key strengths, write them down. Don’t filter them out because you think they’re also your competitors’ strengths; you can edit them down later. The first draft is essentially a brain dump. It’s a great opportunity to explore potential threats and opportunities and conduct an internal “health check” on your company.

Ask for assistance from your team – as I mentioned earlier, each group within your company might see different strengths and weaknesses and could help you identify new opportunities or threats that you might not be aware of.

Explore your first draft, and dig deeper. Why is your customer service a strength? What makes your project management so great? Digging into each item you listed will help you verify whether or not it’s a legitimate strength (i.e. are you better at it than your competitors). The same goes for the W, O, and T sections. Why did you list this particular threat? What is the result of that threat? How could this opportunity affect your business? What could you do to capitalize on this opportunity?

Why do you need a SWOT Analysis?

A SWOT analysis can help you find your competitive “sweet spot”, craft proposal win themes, refine your business pitch and even identify opportunities for growth. Done right, a SWOT analysis can be an immensely valuable tool for guiding your marketing efforts.

Completing a SWOT is also a good opportunity to make sure your entire team is on board with your strategic vision. Bring your marketing and sales team in to review your SWOT; you may find that they’re seeing different strengths within your company or facing different threats outside of it.