Most people in business are familiar with a SWOT Analysis. You list the internal Strengths and Weaknesses of your company, as well as the external Opportunities and Threats. It’s a useful tool in planning. However, it’s sometimes used in place of planning. Try this modified version to develop a more actionable plan.
- Identify 2 direct competitors and 1 substitute (A substitute isn’t within your product category, but consumers could use as a solution instead of your type of product, e.g. a substitute to a video game could be playing paintball).
- List 3-5 of their top Strengths and 3-5 of their top Weaknesses.
- For each Strength of your competitors and substitute, identify potential Treats to your business. How do their strengths undermine your offering?
- For each Weakness, identify potential Opportunities for your business. How can you exploit their weaknesses to your advantages?
- Select the top 3 Opportunities and develop specific plans to take advantage of them.
- Select the top 3 Threats and develop an action plan on how to adjust your offering to make up for their advantages.