SWOT Analysis Example for Internet Business

Calendar May 21, 2009 | Posted by lmfoong

 

 

SWOT Analysis

can be performed in many different ways. I like to illustrate one example using a SWOT Analysis Template | Matrix to to evaluate an Internet Business.

When you use the SWOT Analysis Template or matrix, you need to consider the four factor in SWOT i.e.

Internal Factor: Strengths, Weaknesses and

External Factor: Opportunities and Threats.

Then you need to decide the objective of performining the SWOT Analysis. Say:
The Objective: To start your online Internet Business

For the STRENGTHS, consider your own capabilites in terms of knowledge, skill , attitude, resources towards setting up an Internet Business.
This factor call for your own capabilities to achieve your objective. For example, you need to list all the Strengths within you, your department or organization in setting up an Internet Business. At this juncture, you do not have to question the level of strengths as the SWOT Analysis Template or matrix has a way to help you to screen them at a later stage. Example of my list is as follows:-

  1. Advanced user of computer
  2. Some knowledge in website / webpage design
  3. Regular writer in article directory
  4. Own several ebooks in management
  5. Can allocate time to work on the project
  6. Able to spare some money for the project
  7. Member of several internet forums
  8. Knowledgeable in strategic planning

Next, brainstorm for WEAKNESSES. This time, you consider the “lack of” internal capabilities that may prevent or even stop you from pursuing your objective or goal. This may extent to you, your department or your organization.
Similar to the Strengths, you do not try to screen your list at this juncture. Let the template or matrix do the job. Hence, you should have listed as many as posible Weaknesses that may hinder you to achieve your objective or goal. My example are listed as below:-

  1. Little internet marketing knowledge
  2. No knowledge in internet research
  3. Confused between blog and website
  4. Limited fund for this project
  5. No sure whether to use website or blog
  6. Tends to loose focus

For OPPORTUNITIES, your need to take slightly different approach because it deal with external factors which you may not have enough facts. To assist in this effort, you need to explore or research into some key indicative factors that may encourage you to venture into Internet Business. You can list example of the Opportunities that attract your attention to start your internet business? As opportunties are referred to external factors and they are beyond your own control but do not concern about it at this juncture. Teh SWOT Analysis template or matric can help you to do the work. You can use Political, Environmental, Societal and technology (PEST) Analysis as a guide to help you. Try to visualise what are those factors. Example of my list is as follows:-

  1. Government provide incentives for IT investment
  2. WIFI or internet access is available everywhere
  3. Internet market is huge and expanding
  4. Acceptance level to make purchases from internet increases
  5. Demand for research on the internet increases
  6. Professional websites are available for benchmarking
  7. Free online website template and tutorial are available
  8. Out-source partners are plenty

Similarly for THREATS, these are external factors which are negative and at time demaging to your objective or goal and they are beyond your control. Unfortunately, but cannot be ignore them. You need spend some time to to explore into some key negative or even destructive factors that may jeopartize your Internet Business or influence you from pursuing to start an Internet Business. Think of the worst case scenario and do not concern whether it is real at this juncture. The SWOT Template or matrix will help you to screen them at a later stage. Remember Murphy’s Law? ” Whatever can happen may happen”? So, list as many example as possible and mine is listed below:-

  1. Competition is very high
  2. Website page ranking position is not assured
  3. Possibility of violation in copyright
  4. Payment securities may influence purchaser decision to buy online
  5. Website hack or spam
  6. Internet Technology changes make my website less competitive

All the above examples of the four SWOT factors can be nicely fit into a SWOT Analysis Template | Matrix as indicated in the sample picture below. Please note there is no fix rule to the number of items in each of the quadrant in the template or matrix.

swot analysis template | matrix and example

swot analysis template | matrix and example

While we recognized different situation may require different approaches, the benefit in using a proven template and matrix can be a time saver. Therefore, it is always handy if you keep a library of SWOT Analysis Template | Matrix and Example for different situation as a reference.

In summary, the above example is performed for an Internet Business. Besides this example case study mentioned, you can use the same SWOT Analysis Template | Matrix to do your business analysis for ventures such as restaurant, franchising, boutique, travel agency, sports, even your personal hobby. The list can go on an on but the key is that you must evaluate its impact to the objective of project. You may wonder what to do with this list of SWOT? It will be further analyzed by using a SWOT Matrix, I will write and publish to my blog soon.

So, please bookmark this page your future reading!

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