How to Do Retail Company SWOT Analysis

Why do SWOT Analysiscreative your employees will be during this meeting. I
As a retail owner or a manager you need to learnrecommend that at the end of this meeting each
more about your company. There is a powerful toolgroup makes a presentation and has an opportunity
called SWOT (Strengths; Weaknesses; Opportunities;to ask questions and have a discussion.
Threats) Analysis that will help you to do thisStrengths
research. What are your company's strengths andStrengths are resources and capabilities that can be
weaknesses? Are there opportunities in the future?used as a basis for developing a competitive
Is the company facing any external threats?advantage. Think about what do your company
Why is it good to do? Because all successful(store) does well. Use your customers' point of view
businesses build on their Strengths, need to improve- how do your clients see and describe your
their Weaknesses, use Opportunities and be awarestrengths?
about Treats. You can use SWOT analysis forExamples
business planning or strategic planning, competitor• Good reputation among customers
evaluation, marketing, business and product• Excellent customer service
development, etc.• Superior product performance vs. competitors
You can be more specific and evaluate only one area:• Cost advantages
1. Product (what are we selling?)• Direct delivery capability
2. Process (how are we selling it?)Weaknesses
3. Customer (to whom are we selling it?)The absence of certain strengths may be viewed as
4. Distribution (how does it reach them?)a weakness. Is it anything you could improve? What
5. Finance (what are the prices, costs andare the areas for improvement? List the areas that
investments?)are a struggle. What do your customers complain
6. Administration (and how do we manage all this?)about? What do your customers see as your
SWOT Analysis Advantage - free and fast!weaknesses?
The great advantage of using SWOT Analysis that itExamples
is free! You and your team could also generate new• Poor reputation among customers
ideas about how your company (store) could use• Customer service staff needs training
strengths to defend against threats in the market in• Large administration component
a very short period of time. You will analyze how you• Lack of following-up procedures
could maximize strengths and minimize weaknesses,• Small market presence
use internal and external opportunities and overcomeOpportunities
threats. It is also a great team building activity.Try to uncover areas where your strengths are not
How to use this techniquebeing fully utilized. Are there new opportunities that
You will need to organize a brainstorming (40 min towill arise soon for your company? How can you turn
1 hour) meeting with your team. If you have a largeyour strengths into opportunities? Is there a product
team, you can divide it into groups of 5-6 people.service area that you could do well in but are not yet
Explain to your team the purpose of the meeting andcompeting?
the rules of brainstorming activity. They are: do notExamples
no criticize or judge, welcome any ideas, respect• New technologies
others point of view, focus on quantity not quality,• New market niche
and record ideas and thoughts.• Loosening of regulations
Provide the details of the SWOT Analysis. Give each• Removal of international trade barriers
group a prepared flipchart. In order to make it, just• Local competitors have worse products
draw two lines to make 4 squares. Write the titlesThreats
for each square. A square on the top left will beLook both inside and outside of your company for
Company Strengths; the square below it will bethings that could damage your business. Can your
Opportunities, the square on the right - Weakness,weaknesses become threats? Internally, do you have
and the last one - Threats. Let your team brainstormfinancial, development, or other problems? Externally,
and write down all the ideas they have.are your competitors becoming stronger, are there
You will be very surprised about how active andnew trends?