If you are thinking of doing a SWOT analysis to meet your Objectives, we congratulate you. It is a way of moving forward in a world of constant change. To help you in your analysis, we will help you identify the difference between strengths and opportunities in your SWOT analysis. Before we will review the main points of the study.
SWOT Analysis
It is a strategic planning tool that uses an in-depth study of internal factors or agents such as Strengths and Weaknesses and an external study that covers opportunities and threats. Hence lies a large part of the differences, which we will break down for you later.
Strengths
To understand the differences, you must first be clear about what Strengths entail. Strengths refer to the positive attributes or internal resources that you have to achieve the objective. When we mention internal, we refer to factors that you can control and that generate a competitive advantage.
To identify and select the strengths in a company, it is essential that not only one person participate. Rather, you should involve your work team or departments. It would even be ideal for customers, consumers or suppliers to intervene. Because it will help you to give a more general view of the analysis.
Chance
We refer to situations or variables external to the company, which can have a positive or favorable influence, if you are able to capitalize on it. To identify it, you need to be observant in your environment.
Strengths are often confused or mixed up with opportunities in a SWOT analysis. To differentiate we must determine if the factors are internal or external to the company. If they are internal, we are talking about strengths. If they are external, they refer to opportunities.
Next, we will present a series of premises or guides that will make it easier for you to establish the strengths and opportunities when starting your study. And we will give you an example that identifies these variables.
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Strengths. It can refer to your work team. That your human resource has experiences, skills and knowledge. Since they are part of the company, it is an internal factor.
- Competitive costs is another internal factor. Because costs generate competitive prices. In turn, they depend on the commercial strategy of your company and your solid financial situation, which allows you to capture the attention of the market, even if you lose money. So, your financial strength and costs are your strength.
- Your technological resources and modern facilities.
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Marketing control techniques. It will give you ideas to be competitive.
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Opportunities. It can be attributed to positive government policies. As tax policies that encourage the market and trade agreements.
- Experience low inflation.
- Increase of raw material in the market.
Amazon Example
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Strengths. Its logistics process and speed of delivery or distribution of products.
- Although its focus is on the sale of products, it also distinguishes itself in its Service, even contemplating video services such as Amazon Prime Video. Its wide variety of catalogue, its effective website, follow-up and accurate recommendations.
- Its good image and reputation confers added value to the company, which takes advantage of it by innovating and creating products with its brand, such as Amazon Kindle. This creates respect among your competitors.
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Opportunities. We can mention the economic opening. It has made it easier for Amazon to be physically present in various countries.
- World economic growth.
- The increase in dependence on the part of users of internet purchases. The trend of acquiring products quickly without leaving home is an opportunity that the multinational giant has exploited very well.
It is interesting to consider all this information for your analysis. The important thing is to put it into practice. Be clear about the difference between strengths and opportunities. It will help you visualize your resources and plan your strategies. Tell us your experience.