SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company’s competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.
World Famous Astro Strategist cum Business Astrologer Hirav Shah, who mixes business principles with astrology to help entrepreneurs to maximize their full potential and achieve their desired results, speaks to us about the SWOT analysis. He tells us that a SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, its initiatives, or an industry. The organization needs to keep the analysis accurate by avoiding preconceived beliefs or gray areas and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a prescription.
Hirav Shah recalls that in 2015, a Value Line SWOT analysis of The Coca-Cola Company noted strengths such as its globally famous brand name, vast distribution network, and opportunities in emerging markets. However, it also noted weaknesses and threats such as foreign currency fluctuations, growing public interest in “healthy” beverages, and competition from healthy beverage providers.
Its SWOT analysis prompted Value Line to pose some tough questions about Coca-Cola’s strategy, but also to note that the company “will probably remain a top-tier beverage provider” that offered conservative investors “a reliable source of income and a bit of capital gains exposure.”
Five years later, the Value Line SWOT analysis proved effective as Coca-Cola remains the 6th strongest brand in the world (as it was then). Coca-Cola’s shares (traded under ticker symbol KO) have increased in value by over 60% during the five years after the analysis was completed.
Similarly, many producers in the Bollywood industry have consulted Hirav Shah before launching their projects. Based on the actors, technicians, budget, release date Hirav Shah puts his knowledge of Astrology to use and did a SWOT analysis and the results have been astonishing.
Strengths describe what an organization excels at and what separates it from the competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to attract new investors.
Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.
Opportunities refer to favorable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share.
Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labor supply, and so on.
A SWOT analysis is a great way to guide business-strategy meetings. It’s powerful to have everyone in the room to discuss the company’s core strengths and weaknesses and then move from there to define the opportunities and threats, and finally to brainstorming ideas. Oftentimes, the SWOT analysis you envision before the session changes throughout to reflect factors you were unaware of and would never have captured if not for the group’s input.
Hirav Shah says that a company can use a SWOT for overall business strategy sessions or for a specific segment such as marketing, production, or sales. This way, you can see how the overall strategy developed from the SWOT analysis will filter down to the segments below before committing to it. You can also work in reverse with a segment-specific SWOT analysis that feeds into an overall SWOT analysis.
- It helps to give you certainty in Business
- It helps you find out Forecast of ROI, Profit, Sales, etc
- It provides you more opportunities
- It guides you to strategize and execute Marketing and Sales strategies
- It gives you FREEDOM to think ahead of your competitors
- It enables you to discover the strengths and weaknesses of your business…
- It helps you to STOP worrying about how to make your business succeed and achieve set goals
Hirav Shah concludes by saying a business plan can work for a few and cannot work for others. But those for whom it worked, should ask themselves whether or not the plan makes their business reach its full potential.
If not, then a Business Astrologer can make it reach beyond its current status and to the height, it was meant to achieve.
In the past, Astro consultants were referred for a business to resolve critical or existing situations. But now the term AstroStrategist is being used during a corporate framework as a performance coach.