1. SWOT Did you say? The value & importance of
performing a SWOT analysis for your business
(and how to do it properly)
By: Alfred Goldberg
Absolute Mobile Solutions

2. When I first considered writing a blog post on SWOT analysis, the general
reception was that “everyone knows how to do SWOT analysis,” and “I feel like this
subject has been covered sufficiently already.” Although every business student is
intimately familiar with SWOT analysis by the time they graduate, it is important to
realize that the majority of small and medium business owners did not attend
business school. This is the case with many of the small and medium businesses
that Absolute works with on a daily basis.
As SOSTAC certified planners, every marketing plan we help develop begins with
Situational Analysis. SWOT analysis is one of the most valuable assessment tools
we use during this part of our plans. SWOT analysis is commonly viewed as an
instrument for identifying an organization’s Strengths and Weaknesses, two
internal attributes, and Opportunities and Threats, two external factors. However,
SWOT analysis’s utility goes far beyond an identification tool, which we will explain
in this blog.
The value & importance of performing a SWOT analysis for your business

3. When Should You Use SWOT Analysis?
• To increase the value of your product or services, to overcome competitor
threats, or to use as a decision-making tool.
• To explore possibilities for new efforts or solutions to problems.
• To make decisions about the best path for your initiative. Identifying your
opportunities for success in the context of threats to success can clarify
directions and choices.
• To determine where change is possible. If you are at a juncture or turning
point, an inventory of your strengths and weaknesses can reveal priorities as
well as possibilities.
• To adjust and refine plans mid-course. A new opportunity might open wider
avenues, while a new threat could close a path that once existed.
• SWOT can also serve as a communication tool quickly putting a new initiative
into perspective.
The importance of carving out your purpose in a competitive landscapeThe value & importance of performing a SWOT analysis for your business

4. What are the Elements of a SWOT Analysis?
A SWOT analysis is made up of two internal and two external factors. These are Strengths,
Weaknesses (Internal), Opportunities, and Threats (External).
INTERNAL FACTORS
We find it useful to examine an organization’s Strengths and Weaknesses within the context of
these following areas:
The importance of carving out your purpose in a competitive landscapeThe value & importance of performing a SWOT analysis for your business

5. Challenges of Discovering Strengths and Weaknesses
There are some challenges that are faced when attempting to document your organization’s
strengths and weaknesses.
One of these is that you are invariably viewing your organization with an insider’s perspective.
This can lead to overlooking strengths and weaknesses that are apparent to outsiders. You can
overcome this challenge by including outsiders such as your customers and other people in
your market.
Another difficulty is presented when we view our organizations with rose colored glasses. It is
very common to exaggerate your strengths and dismiss your weaknesses. Although some
SWOT analysis can be aspirational, we feel it is important to concentrate on the current state of
your organization and use SWOT as the tool to achieve your aspirations.
EXTERNAL FACTORS
The external factors, Opportunities and Threats, are often more challenging to determine as
they require examining forces outside your control. We recommend using a framework for
considering these effects and eliciting the opportunities and threats that they may present to
your organization.
The importance of carving out your purpose in a competitive landscapeThe value & importance of performing a SWOT analysis for your business

6. The structure is called PESTEL which is an acronym for its
components. These components are:
Political: These factors determine the extent to which a government
may influence the economy or a certain industry. [For example] a
government may impose a new tax or duty due to which entire
revenue generating structures of organizations might change. Political
factors include tax policies, Fiscal policy, trade tariffs, etc. that a
government may levy around the fiscal year and it may affect the
business environment (economic environment) to a great extent.
Economical: These factors are determinants of an economy’s
performance that directly impacts a company and have resonating
long term effects. [For example] a rise in the inflation rate of any
economy would affect the way businesses price their products and
services. Adding to that, it would affect the purchasing power of a
consumer and change demand/supply models for that economy.
Economic factors include inflation rate, interest rates, foreign
exchange rates, economic growth patterns, etc. It also accounts for
the FDI (foreign direct investment) depending on certain specific
industries who are undergoing this analysis.
The importance of carving out your purpose in a competitive landscapeThe value & importance of performing a SWOT analysis for your business

7. Societal: These factors scrutinize the social environment of the market, and gauge
determinants like cultural trends, demographics, population analytics, etc. An example for this
can be buying trends for Western countries like the US where there is high demand during the
Holiday season.
Technological: These factors pertain to innovations in technology that may affect the
operations of the industry and the market favorably or unfavorably. This refers to automation,
research and development and the amount of technological awareness that a market
possesses.
Environmental: These factors include all those that influence or are determined by the
surrounding environment. This aspect of the PESTEL is crucial for certain industries particularly
for example tourism, farming, agriculture, etc. Factors of a business environmental analysis
include but are not limited to climate, weather, geographical location, global changes in
climate, environmental offsets, etc.
Legal: These factors have both external and internal sides. Certain laws affect the business
environment in a particular country while there are certain policies that companies maintain
for themselves. The legal analysis takes into account both of these angles and then charts out
the strategies in light of these legislations. For example, consumer laws, safety standards, labor
laws, etc.
The importance of carving out your purpose in a competitive landscapeThe value & importance of performing a SWOT analysis for your business

8. Challenges of Discovering Opportunities and Threats
Because most people who operate small and medium businesses spend their
time focusing ON their businesses, examining opportunities and threats can be a
challenging exercise as it requires refocusing attention externally. Some of the
challenges include:
Resource Limitations
The more information you have on external forces, the more likely external
opportunities and threats can be recognized. However, deeper market analysis
requires more time and costs.
Inexperience
Analyzing external forces often requires skills that are underdeveloped when
primarily focused on internal factors. This can lead to overlooking opportunities
and threats.
The importance of carving out your purpose in a competitive landscapeThe value & importance of performing a SWOT analysis for your business

9. Who develops the SWOT?
SWOT analysis can and should be used by anyone responsible for decision
making. Typically, the more people included in a SWOT analysis, the more
comprehensive it will be. Depending on the objectives of the review, you should
select the appropriate number of individuals required. This could range from a
single individual to a team comprising different departments/roles as well as
customers and focus groups.
DO WE NEED A PROFESSIONAL FACILITATOR TO PERFORM A SWOT ANALYSIS?
It is common for us to see SWOT developed with the help of an outside
facilitator. Sometimes this leads to a belief that a SWOT analysis can only be
done with the support of a trained and experienced facilitator. In my opinion,
this leads to an underutilization of this valuable tool.
The importance of carving out your purpose in a competitive landscapeThe value & importance of performing a SWOT analysis for your business

10. The importance of carving out your purpose in a competitive landscapeThe value & importance of performing a SWOT analysis for your business
Alfred Goldberg
Co-founder and President of American Operations at Absolute Mobile Solutions. Alfred Goldberg
has over 15 years of experience as a small business owner and is one of two individuals in Florida to
hold the distinction of being a Mobile Marketing Association Certified Mobile Marketer.
To learn more visit our website at www.AbsoluteMobileSolutions.com
ABSOLUTE MOBILE SOLUTIONS IS A CERTIFIED SOSTAC PLANNER WITH THE
EXPERIENCE AND TECHNICAL EXPERTISE TO CONDUCT YOUR ORGANIZATION’S
SWOT ANALYSIS. CONTACT US TODAY FOR A CONSULTATION TO START!