How to Conduct a SWOT Analysis and Create a Decision Matrix
The factors are considered in several key combinations. By compiling them, the company's management will come to an understanding of what specific actions need to be taken to improve the business. Their totality forms a SWOT analysis matrix as a practically significant algorithm for the company.
S and O combination
It is studied in the context of how the company's strengths will help to develop its capabilities better. Thus, if the outgoing foreign brands (O) were valued primarily for their beautiful design, then a company with a similar design (S) will be able to occupy a free niche faster than competitors. The required management actions are to maintain the design at a high level, study trends and quickly implement them in production.
Low price and wide range (S) will be advantages when hong kong cell phone number list expanding online sales (O), where for many buyers the cost of the goods, as well as the possibility of choosing many options for trying on, are the main criteria for making a deal. The required management actions are to ensure the maximum range of products is presented in online catalogs, as well as the actual availability of a sufficient volume of goods in warehouses.
The combination of W and O
Used to understand how a company's weaknesses can be offset by opportunities and prevent them from being realized.
Examples of compensation scenarios when:
high return rates (W) are reduced by additional quality control, which is implemented using funds generated by tax savings (O);
low profitability (W) is compensated by increased turnover and sales dynamics in a growing market (O);
Low brand awareness (W) is improved by online advertising campaigns amid consumer interest in online shopping (O).
In turn, it cannot be ruled out that a high percentage of returns (W) will make online sales (O) unprofitable due to high logistics costs. Delivery and return conditions may be complicated or unacceptable in terms of price for the buyer. Because of this, it will not be possible to develop a promising niche. The required actions of management - when moving sales online, work out mass delivery and return schemes for goods without shifting costs and labor costs to customers.