What is SWOT Analysis?
The SWOT analysis method takes a look at your company’s strengths, weaknesses, opportunities, and threats. It is one of the most popular methods of situational analysis. Let’s study the four main areas of SWOT Analysis in detail:
- Strengths: Strengths determine the company’s positive aspects of a business. It states the businesses of what they do well and determines other positive features of a business that acts as strength.
- Weaknesses: While many organizations are aware of their strengths, they may be less willing to get aware of their weaknesses. However, it is equally important to understand and beware of the company’s weaknesses that are crucial for further improvements.
- Opportunities: Knowing and deciding to move forward with different opportunities require a lot of brainstorming. Opportunities expand business leading it towards the success. It can be catering a new customer base or entering into the emerging market.
- Threats: Above all the three factors, threat portion asks a business to thoroughly evaluate and think about external factors. The businesses must be aware of outside entities that hurt the business and can also lead to failure.
The SWOT analysis determines a business current standing, future opportunities, and potential risks from outsiders.
What is 5C’s Analysis?
Well, 5C’s analysis is somewhat similar to SWOT Analysis, however, it is used as a framework for marketing, rather than evaluating the company’s overall health and current standing. Understanding this type of situational analysis establishes marketing strategies that put businesses ahead of market competition.
The 5C’s are:
#1 Company:
Even though the 5C analysis is more inclined towards marketing and competition, the first step is to look inside your own company. Consider your business abilities, products, current marketing, and financial aspects of the business. Look at the company’s insights and determine where your company stands.
First you need to begin with SWOT Analysis that will create well-rounded evaluation for the first C.
#2 Customers:
After determining the internal factors of your own company, shift your attention towards the king of the market i.e., customer base. Ask yourselves about what your customers’ needs and wants. This particular scenario will lead to better communication between an organization and individuals it serves.
One can generate reviews and increase the customer’s base either through open discussion, polls, or setting up of consumer testing.
#3 Competitors:
If a business has thoroughly evaluated its competitors, that business will eventually get success. It is important to carry out a market research if you do not know the company’s top competitors. Once you have knowledge about your competitors, dig deeper into these brands and then create marketing strategies or leaderships.
#4 Collaborators:
Collaborators are exactly opposite to competition. It states the symbiotic relationships that your business can have with. Your business can have professional partnership in future with these collaborators.
#5 Climate:
The final C of the 5C’s analysis is the climate that refers to the environmental aspects that your business is functioning in. It also refers to specific events and global events that have impact on various industries.
It is crucial to evaluate the climatic conditions and establish a full proof effective plan with these confines.
Wrapping up
In this article we have learned about the first two methods of situational analysis, which is SWOT analysis and 5Cs analysis. In the next blog, we will be covering the other two methods of situational analysis.
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