SWOT analysis is an instrumental framework that can assist a business or an organization assess its Strengths, Weaknesses, Opportunities and Threats. An environmental scan that includes both internal and external factors which creates an impact to a business is crucial specially when conducting strategic planning. Since all business organizations have a goal, it is very beneficial for them to conduct a SWOT analysis that would give them a complete and thorough state of the business. The SWOT analysis has four parts but this article would just discuss SWOT analysis weakness.
The SWOT analysis weakness is the second internal factor that must be given attention when scanning the business environment. SWOT analysis weakness defines the characteristics of the business that puts it in a certain disadvantage as compared to others. Each business has its weakness that must be addressed or developed to improve profitability. Likewise, an objective SWOT analysis weakness enables management to re-evaluate its priorities. Problems, losses,weak areas are part of the difficulties when identifying the SWOT analysis weakness. Nevertheless, the challenges should not be a stumbling block but rather an opportunity to improve business operations.
Examples of SWOT analysis weakness are lack of marketing expertise, undifferentiated products or service, poor quality goods or services, inefficient distribution channels, business location, lack of patent protection, weak brand name, high cost structure, lack of access to best natural resources, and a lot more. A concrete example - a company's reputation is tarnished because it has released expired products on the market, this has grave implications for the business. Customers who used to be loyal would suddenly choose another brand. When this happens, the business strength becomes a weakness which is hard to turn-around. Understanding the factors included in the SWOT analysis weakness does not mean that management is already useless and the issue is uncontrollable. Actually, this must propel them to be more eager in balancing the weakness by searching for opportunities in the external environment.
SWOT analysis weakness is a good chance for a business to really look inside the organization and improve the areas that cause such weaknesses. The weakness are not really obstacles but rather, points for improvement so the business can grow and move forward.