By Garry Hojan
In this newsletter, we cover my favorite part of a SWOT analysis: opportunities!
In the last two newsletters, we covered the initial steps needed to begin your SWOT analysis, focusing on strengths and weaknesses. If you missed them, you can read them here http://bit.ly/3SIV0k2 (Initial steps and Strengths) and here http://bit.ly/4dTKwYT (Weaknesses).
What is the purpose for analyzing opportunities?
Many of us, when starting our businesses, took whatever we could to create cash flow. It’s not a bad thing when starting out and it’s pretty common to do that.
However, as our business evolves, we must ensure that we are not seizing every opportunity just because it presents itself. Why not? Because not all opportunities are created equal.
Without analysis, we don’t really know which opportunities best use our scarce resources for our greatest possible return.
Further, we may find our greatest opportunities simply by being intentional in looking for them and then matching them with our internal strengths to maximize potential return.
We can look both internally and externally, but for this scenario, which is typical, we’ll talk about external-facing opportunities.
Ensure your team first defines the objective for this part of the SWOT analysis so that it’s clear to everyone what they are trying to accomplish; otherwise, resources could be wasted.
Your team should again use the same processes and stakeholders mentioned in the first newsletter, this time to gather data to identify opportunities that appear favorable to your business.
Sources for opportunity information and data can include:
● General Market Research: Analyze market trends, general customer behavior (not just yours), and emerging opportunities.
● Competitor Analysis: Identify your key competitors, their strengths and weaknesses, market share, and what strategies they are using.
● Industry Reports and Periodicals: Research or purchase industry reports and publications to understand industry dynamics, regulatory changes, technological advancements, and competitor announcements.
● Economic and Geopolitical Conditions: Review economic and geopolitical trends that could impact your business.
● Customer Feedback: Critically, talk to your customers, and understand their needs, preferences, ideas, and satisfaction levels.
● Social Media: Monitor social media for brand mentions of both yours and your competitors, customer reviews, and any emerging trends.
Once your team has the information and data, the opportunities analysis begins.
As the information is reviewed, the team should look for external factors that could benefit your business, such as new or growing markets, tech advancements, or changes and trends in customer needs and preferences.
Here’s a quick example: An aeromanufacturing OEM had a strong North American market. After gathering data and analyzing opportunities, they decided that the best opportunity was to make new product development a second priority, versus greatly expanding market approvals for existing products.
Market approvals did not require extra engineering, tooling, fabrication, facilities, or additional certification work; it is an administrative exercise with much lower entry fees and can generally be accomplished much quicker than new product development and certification.
Expanded market approvals opened new market sales. This became the best return on investment opportunity realized in more sales, profit, and company growth.
I should point out that opportunities data, along with all the previous data, will be used to identify threats, but we will cover that in the next newsletter.
After identifying potential opportunities, it’s time to prioritize them based on a combination of greatest impact and highest feasibility in descending order.
Now that you have a well-researched, data-driven list of opportunities organized by greatest return and which are most feasible, it’s time to decide which opportunities will be incorporated into your overall business strategy.
Developing the strategy is like we mentioned in previous blog posts. In this case, develop specific strategies that leverage your strengths to capitalize on opportunities as you have prioritized them.
Ensure that each strategic goal is actionable, with clear responsibilities and timelines, and that it aligns with your overall organizational goals.
Nothing happens without resources being allocated; make sure you do this effectively to support the implementation of your chosen strategic goals.
Lastly, don’t forget to monitor your strategic results and adjust or pivot as needed.
Next newsletter, I’ll wrap up this answer series with “Threats” and provide a free SWOT analysis worksheet download for your use.
Need help setting your strategic foundation? Let’s chat.
Never any sales pressure, a no-charge initial consult, and a simple zero risk guarantee…you receive higher value over cost, or you don’t pay.
You can email me at ghojan@jhaero.com or call my cell at 208-627-2565.
