Online store owners strive to make their sales grow continuously. However, the most common mistake is pursuing this goal blindly. SWOT analysis of online stores helps to develop a strategy so that the actions taken are more effective.
SWOT analysis of online stores – table of content:
- What is SWOT Analysis?
- What can be included in a SWOT analysis?
- How to conduct SWOT analysis?
- Who should conduct SWOT analysis and when?
What is SWOT Analysis?
SWOT analysis is one of the most popular methods used for the strategic analysis of a company. It helps to identify its strengths and weaknesses by considering both external and internal factors. The acronym “SWOT” stands for:
- Strengths (S)
- Weaknesses (W)
- Opportunities (O)
- Threats (T)
Strengths and weaknesses are determined by internal factors, which means that the company influences them. The opposite is true for opportunities and threats, which are determined by external factors. The company has no direct influence on them, so it can only react instead of control.
What can be included in a SWOT analysis?
The above table does not refer to a specific store or industry. These are examples of factors that can affect the functioning of the company. It is worth noting that what some see as positive, others may find the opposite.
How to conduct SWOT analysis?
First, you should give yourselftime. Carry out the analysis with no haste due diligence. The whole process needs objective assessment with concrete evidence, not the subjective opinion of researchers. It is worth collecting a set of information such as financial reports, marketing data, competitors’ analysis, customers’ opinions, etc.
Who should conduct SWOT analysis and when?
SWOT analysis is a universal tool for any business, regardless of the industry, it operates in or its stage of development. Every company should carry out such analysis even several times during different life cycles of a brand, as there may occur seemingly imperceptible changes which influence the whole enterprise. You can use the research for various occasions later, when there are disturbing changes in the company, e.g. decrease in sales.
SWOT analysis enables you to get to know your store better, including its weaknesses, which the owner can work on. Additionally, strengths can be used to promote the business. Opportunities and threats are factors that a business cannot control. However, take the time to see their impact and to try to adapt as good as possible to the prevailing conditions.
In conclusion, SWOT analysis of online stores is best conducted regularly and reliably, as the results from it can bring a lot of valuable information to the company. The owner will get to know his store and the market in which he operates better and consequently makes more accurate strategic decisions.
Our previous ecommerce articles:
- E-commerce analytics – why it’s important?
- How to create the effective value proposition
- What is Bounce Rate – 7 Ways to Improve
- Rules of online store – what information should be included
The most important questions
What is SWOT analysis?
It is a method that enables a company to conduct strategic analysis.
What are the elements of SWOT analysis?
SWOT analysis distinguishes between the strengths and weaknesses of a company and the opportunities and threats resulting from external factors.
How to conduct SWOT analysis?
SWOT analysis needs time and precision it has to rely on real documentation.