SWOT 201: Comparative SWOT Analysis
To have a return on capital employed and make profit, a company must provide goods or services that the customer needs or wants. To gain a larger market share and increase sales, a company must set its offerings apart from those of its competitors through an effective, sustainable competitive strategy. Comparing a business model and competitive strategy offers an opportunity to craft a consistent message using a unique set of strengths to draw the right customers. “SWOT analysis is a classic strategic planning tool originating from business and marketing analysis that encourages groups and individual to reflect on and assess the strengths, weaknesses, opportunities and threats of a particular strategy, decision, plan etc. and how best to implement it.� Over the past five decades there has been a revolutionary change in respect of how to conduct an effective SWOT analysis. Whether on profit or non-profit organizations, businesses, even on an individual decision making level. Though a number of the general population have come to make SWOT analysis work for their businesses or for themselves, many still fall short on an important extended shift on examining the internal and external environment for their competitors, other individuals and or departments in the same organization. Comparative SWOT analysis can help in identifying Strengths and Weaknesses, and examining the Opportunities and Threats you and your competition face. Knowledge is power, learning more about your competition, other departments in an organization becomes an important integral part in effective strategic planning and a key to having a greater insight into the market, and a balanced viewpoint of the organization.
As it is continually stated that two companies or departments have different fields of operation and have different business models; it should be noted however, that they may share some business related aspects of their operations. Therefore, no matter how they perform their work, they have customers and employees, suppliers, offer goods or services and have some way of generating value. A comparative SWOT analysis can be successfully conducted for any two companies, departments or individuals and obtain insights into how a company can gain competitive advantage and or how the departments can improve the business performance. To effectively conduct a comparative SWOT analysis, two important steps can be followed; Complete the SWOT analysis for your competitors, other departments and or for yourself – it is easier to answer questions about ones organization or department but the same cannot be said for competitors and other departments. It is important to try and answer as many questions as possible and use a SWOT evaluation template. The next step is to use a SWOT analysis evaluation tool to compare and contrast so as to gain competitive advantage. For example, a strength is providing high-quality products, yet everyone in the field produces high-quality products, then it is not a strength; it is a necessity. To effectively do your SWOT analysis get a SWOT analysis evaluation tool .
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