SWOT analysis is an analysis technique that is very useful in understanding the situation of a company or business. This analysis technique is used to evaluate the strengths, weaknesses, opportunities and threats (SWOT) contained in the internal and external environment of a company. This analysis can assist companies in developing more effective business strategies, both to face competition and to take advantage of existing market opportunities.
In conducting research on competitors, SWOT analysis can help companies understand the strengths and weaknesses of competitors as well as opportunities and threats that may occur in the market. Here are the steps for using SWOT analysis in competitor research:
- Identification of Competitors The first step in conducting a SWOT analysis of competitors is to identify who the company's competitors are. Competitors can come from similar companies or from products that are similar to the company's products.
- Strengths of Competitors After identifying competitors, the next step is to evaluate their strengths. Competitor strengths can be better products, lower prices, stronger brands, or better distribution.
- Weaknesses of Competitors In addition to evaluating strengths, companies must also evaluate competitors' weaknesses. Weaknesses of competitors can be in the form of unfavorable products, lack of innovation, product quality problems, or poor management problems.
- Competitor Opportunities Next, the company needs to evaluate the opportunities that are owned by competitors. These opportunities can come from developing markets, new technologies, or competitors' weaknesses that can be exploited.
- Competitor Threats Finally, the company needs to evaluate the threats posed by competitors. This threat can come from increasingly fierce competition, the presence of new competitors, or changes in market trends.
After the steps above have been carried out, the company can create a SWOT matrix that describes the strengths, weaknesses, opportunities and threats of competitors. In this SWOT matrix, strengths and weaknesses will be placed at the top, while opportunities and threats will be placed at the bottom. This SWOT matrix can help companies create more effective business strategies.
SWOT matrix example for competitor research:
|Competitor Strength||Competitor Weakness|
|Best product||Worst Product|
|Highest Price||Lowest Price|
|Best Brand ||Brand Problems|
|Best Distribution||Management Problems|
|Market Opportunity||Market Threat|
|Market Growth||Intense Competition|
|New Technology||New Competitors|
|Weaknesses of competitors that can be exploited||Market Trend Change|
From the SWOT matrix above, it can be seen that competitors have strengths in better products, lower prices, stronger brands, and better distribution. However, they also have weaknesses in poor products, lack of innovation, product quality problems, and poor management problems.
In addition, there are opportunities to take advantage of competitors' weaknesses, growing markets, and new technologies. However, companies must also face threats from increasingly fierce competition, new competitors, and changes in market trends.
From the results of this SWOT analysis, companies can develop business strategies that are more effective in dealing with competitors. For example, a company can take advantage of competitors' weaknesses by improving the quality of its products or developing new innovations. Companies can also take advantage of developing market opportunities and new technologies to increase market share. However, companies must remain alert to threats from increasingly fierce competition or new competitors by continuing to develop better products and business strategies.
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Conclusion SWOT analysis is an analysis technique that is very useful in understanding the situation of a company or business. In conducting research on competitors, SWOT analysis can help companies understand the strengths and weaknesses of competitors as well as opportunities and threats that may occur in the market. By utilizing the results of this SWOT analysis, companies can develop business strategies that are more effective in facing competition and taking advantage of existing market opportunities. Therefore, SWOT analysis must be an important part of the business strategy of every company or business.
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