Objective:
To create a clear understanding of their competitors, using SW analysis.
Overview:
A SWOT analysis is a useful tool for analysis, when actions and conclusions are drawn from it.
Activity:
Instructions
Invite the entrepreneur / small business owner to identify their key competitors (at least 3), and list the strengths and weaknesses of each.
Examples of strengths and weaknesses for a bicycle manufacturing business,
StrengthsÂ
- Reliable products
- Well respected brand
- Competitively priced
- Focussed on specialist market
Weaknesses
- Limited capacity to produce
- Outdated methods of production
- Lack of marketing expertise
- Low profit margin
Consideration should then be given to each of the competitors, and compared with the entrepreneur or small business owners’ view of their own business.
- What can be learnt from the competitors’ strengths?
- What can be done better than the competition?
- Are there any weaknesses that can be exploited?
This analysis can then inform what approach the entrepreneur / small business owner takes to developing their own business and to understand how they can best create or sustain a competitive advantage.
The key to using SWOT is now determine a course of action from this analysis.
Students can be invited to present their work and comment to provide constructive criticism, which is future focused.
Skill Development:
By placing a clear focus on future action, rather than analysis, this will build skills of evaluation, decision making and judgement which lend themselves to action.