Threats

Finally, you need to look at the threats to your business. Although we don’t like to think of them, we all face threats in our business. Many times, threats are out of our control. These can be a downturn in the economy (such as we have recently experienced), a shift in market demographics, or perhaps a new super store opening in your local area. It is vital to think about and be prepared for such events.

• What obstacles does your company face?
• What does your competition offer that could take business away from you or stunt your company’s growth?
• Are the required specifications or regulations for your products or services changing?
• Is your position in the market threatened by changing technology?
• Do you have cash flow problems that could keep your company from acquiring necessary or new technology, staff or equipment?

In answering these questions and the questions in the previous two posts, you must be brutally honest about your business. Not doing so will significantly affect the accuracy of this competitive analysis. The answers to these questions will give you priceless insight into your business, your market, and your competitors. Completing your SWOT analysis will put you in a better position to develop a strategic plan that considers your competition, market trends, customers’ needs and your company’s ability to compete in the marketplace. It is important that your strategic plan be aimed at allowing all members of your organization and/or investors understand your market position and how your company plans to compete.

Recommended Book

Here is another book that provides excellent guidance and a step-by-step process on conducting analysis of your competition, as well as tips and tools to find the answers you need.

Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter

This is a more advanced book that provides a solid outline of subjects and questions to improve your thinking and help your company get to be a step ahead of the competition.

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With the hyper-inflation that will come with multi-trillion dollar deficits, basic commodities are going to soar in value. You must have food, clothing and shelter. They are not discretionary spending, they are the necessities. How much does your family spend at the grocery store every month? Have you ever really looked at how much money you spend a year for groceries? It can be enlightening and somewhat scary. When you factor in the projected inflation combined with new climate and energy regulations affectionately called Cap and Trade it’s not a far stretch to see produce and meat prices double. There are a lot of economists that see this coming and are investing in gold as well as advising others to do the same. I can only afford so much gold, but what I do have is a nearly unlimited supply of is ambition and self sufficiency combined with the knowledge of how to grow my own produce and raise my own livestock. That is money in my pocket. But as I have learned, once you know how to grow well enough to supply food for yourself and family, it’s not that much more to grow enough to sell or trade.

How can I prepare for hard times? I hear that question a lot. When you get to talking people and break it all right down to the nitty-gritty you realize that the more independent you are the less dependent you are on someone else and the less you have to spend.

There are some companies that are heavily marketing survivalist seeds but they aren’t going to help you a ‘gnats posterior’ if you don’t know how to grow.

Now is the time to learn. There is no excuse for not learning how to grow an organic garden. You can start with a container and work your way up. You could even convert part or your garage or workshop since you already have it heated. Get creative. You are not going to be independent if you have to purchase synthetic chemical fertilizer, made from natural gas, to make your produce grow. You can learn to do this!

Greg Traver writes articles that enable anyone to be a successful organic gardener. Want to know how to grow? Read for yourself at http://www.organic-gardening-for-life.com/Beginners_Guide.html.

Copyright 2009 Greg Traver

Article Source:http://www.articlesbase.com/ask-an-expert-articles/how-to-profit-in-economic-crisis-1446130.html

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Weaknesses

Next take a look at your company’s weaknesses. This is not only from your perspective, but also from your competitors’ perspective. Yes, it is sometimes tough to think about your weaknesses. But to clearly understand your competitive advantage, you must be honest with yourself now and face any unpleasant truths so they can be resolved as soon as possible.

• What does your company do poorly?
• What things or activities should be avoided?
• What do your competitors do better than you?
• What improvements can your company make?
• Is there a particular market or segment that your competitors have “cornered”?

Take a look at the list of weaknesses mentioned. Those that appear most often are the ones you need to concentrate on first, as they are your most critical. Work with your employees, business partners, vendors – whomever is involved or affected by the weaknesses – to develop a plan to correct the weakness. If you can turn that weakness into a strength that sets you apart from your competition, even better!

Opportunities

Now take a look a the areas in your market that offer you room to grow.  Opportunities can come from any number of places – you need to stay aware in what is happening in your industry. This can take the form of changes in many areas that affect your business, such as: in technology and markets on both a broad and narrow scale; changes in government policy related to or impacts your industry; changes in social demographics, customer lifestyle and/or buying patterns; and key an eye on local events, such as the closing of a nearby store.

• What and where are the interesting opportunities in your market?
• What do your competitors do or offer that you can improve upon?
• What are the important trends occurring in your local area, as well as across the country?
• What do you anticipate happening in the future that may present an opportunity to stay ahead of your competitors?Carefully analyze the information you gather.

Choose three to explore and develop. (Choose only three because this is a quantity that can be easily managed. Once you complete one and it is either seamlessly integrated into your systems or has been discarded, then add another opportunity to take its place.)

In the third and last post, I will discuss the last element of SWOT: Threats.

Recommended Book

Here is a book that provides excellent guidance and a step-by-step process on conducting analysis of your competition, as well as tips and tools to find the answers you need.

Competitive Intelligence : How to Gather, Analyze, and Use Information to Move Your Business to the Top by Larry Kahaner

This book is written in aa clear, no nonsense style that will enable you, the business owner, to immediately apply his insights in your company.

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SWOT

There is a basic formula for analyzing your competition: SWOT. This is an acronym for Strengths, Weaknesses, Opportunities and Threats. Within each area, there are questions you need to ask. You may not be able to answer all of the questions at first, just make sure you take the time to find the answers. Also, consider involving your partners, employees, colleagues to help. Those answers are your keys to placing yourself above your competition.

In this post, I’ll discuss the first area to analyze: Strengths.

Strengths

This is your first step. Consider your company’s strong points. These are from your own, your employees’, and your customers’ viewpoints.

• What clear advantage does your company offer?
• Why do your customers say they enjoy doing business with you?
• What stands out – is it your product or service, price, expertise, customer service?
• What do you offer that is not offered by any competitor – now or in the future?

Review the answers to these questions. Are your employees saying the same things as your customers? Your colleagues? Your vendors? Those answers that consistently repeat themselves from all sources are your primary strengths. Take these strengths, compare and contrast them with your competition’s strengths, and build a marketing plan and corporate culture around your distinct strengths.

In the next post, I’ll discuss the next two elements of SWOT: Weaknesses and Opportunities.

Continued in Analyze Your Competition – Part 2

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