Whether you are a professional marketer, an aspiring entrepreneur, or the CEO of a multinational company, a SWOT analysis will come in handy for organizing your market or company-level views on how things are and where they need to go. As one of the most popular planning tools used by companies of all kinds, the SWOT framework allows you to compile a data-driven summary of a company’s strengths and weaknesses so you can stay on top of market trends and make more informed business decisions.
When done for your rivals, a SWOT analysis allows you to understand the effects of any strategies or tactics others are implementing that you might want to embed in your own business model. Identifying possible areas for brand improvement helps you improve your relative positioning in the market compared to others.
As the last (and most satisfying) phase of any solid competitive analysis, this is where you synthesize all of your market research findings into a useful comparison of your business model or product with that of your rivals.
As you elaborate on the specifics of your market, consider the following:
- Are there opportunities in the market that your competitor has identified and successfully cashed in on?
- What is working well for your rivals? (Content marketing, product quality, etc.)
- What is your competitor’s weakest point?
- Where does your brand have a clear advantage over your competitors?
- What could competitors do better?
How Our Template Works
We deliberately designed our SWOT competitor analysis to be a simple but comprehensive spreadsheet that allows you to identify key internal capacities and external conditions that affect your standing in the market compared to your toughest competitors.
In the first section of the spreadsheet, you enter basic details about each competitor you are analyzing (and, of course, yourself), such as name, industry, location, founding year, number of employees, key products, and annual revenue. In the next four sections, you run a basic SWOT analysis for yourself and your key competitors.
To learn more about why a regular SWOT analysis can be so rewarding for your business and how you can run one for any given business — feel free to check out our blog here, where we share some of our best tips & most useful insights on the subject.
SWOT Exemplified
The findings of your SWOT Competitor Analysis shall vary depending on the type of competitor you are analyzing, the product or service you are comparing, and the specific market or industry your business operates in.
That said, we have listed the most common & typical Strengths, Weaknesses, Opportunities, and Threats below to give you a better idea of what to expect to find under each of these four SWOT components:
Strengths
Think of internal factors that give the company a competitive advantage, such as:
- Strong brand presence
- A great corporate culture
- A loyal customer base
- Rights to new & advanced technologies
- Strong balance sheet
- High online ratings
- High website traffic
- Operational efficiencies
Weaknesses
Can you think of any internal limitations hindering performance or productivity, for example:
- Limited resources
- Weak brand recognition
- High employee turnover
- Dependency on a Single Market or Customer
- Weak online presence
- Reliance on third-party vendors
- Outdated technology
- Poor financial management
Opportunities
Study each company’s immediate business environment to spot any promising possibilities they have to grow or expand, such as:
- Shifting market trends
- Changing customer needs or preferences
- Regional or global expansion
- Developments in technology & science
- Mergers or acquisitions
- Changing Demographics
- New social trends (say, ethical consumerism)
Threats
Look for any external risks or hazards that may negatively impact a business, such as:
- Supply chain disruptions
- The rising cost of raw materials
- Tight labor supply
- Strained distribution lines
- Unpredictable product demand
- Regulatory changes or delays
- Emerging competitors
- Public health emergency (like COVID-19)
- Political turmoil or conflict (say, wars, protests & internet shutdowns)
- Cybersecurity risks
Who Is Our Template For?
- Business Managers who want to understand market positioning and inform strategies.
- Strategic Planners who need to identify areas of improvement and leverage opportunities.
- Marketers looking to enhance competitive marketing strategies.
- Consultants who advise clients on competitive advantages and risks.
Why Do I Need One?
- Competitive Benchmarking: Understanding how a company compares to its rivals.
- Strategic Decision-Making: Identifying opportunities and mitigating risks in the business environment.
- Market Analysis: Gaining insights into competitors’ strengths and weaknesses.
- Risk Management: Proactively addressing potential threats to the business.
Wrap Up
A SWOT analysis is one of the most powerful planning tools used by organizations to understand the key (internal and external) factors that affect their operations in both negative and positive ways. Note that while strengths & weaknesses are both internal factors tied to a specific organization or project, opportunities and threats are factors existing outside and beyond the control of individual businesses or organizations.
This spreadsheet can be customized to the needs of businesses operating in any market or industry. You can easily replace, adjust or add to the default analytical categories we have used with other criteria better suited to your unique business context. While the default template only allows you to compare your business to up to three competitors, this number can be easily scaled up & expanded to analyze as many competitors as needed.
