A SWOT analysis is an analytical tool used in businesses and organisations to understand the potential advantages and disadvantages of strategic plans and initiatives, business ventures and even assessing departments. A SWOT analysis can apply to many more areas as well. A SWOT analysis of a spa will assess the strengths, weaknesses, opportunities and threats it faces.
The strengths area of a SWOT analysis should focus on the internal elements of an organisation. This section is where a spa would identify the strengths it currently possesses. For example, some spas may cite in this section quality customer service, low staff turnover, high customer referral rates, large product breadth, a unique spa experience, experienced staff members and a large client base.
The weaknesses area of a SWOT analysis examines the internal elements of an organisation. This section is where a spa would identify the areas where it is deficient. For example, some spas may cite in this section an inconvenient business location, dated or worn equipment, high overhead costs, a small client base or poor organizational leadership.
The opportunities area of a SWOT analysis should focus on the external circumstances an organisation faces. The opportunities should range from local to distant factors that could potentially lead to growth or improvement. In this section, a spa would identify opportunities for growth or improvement it currently possesses. For example, some spas may cite in this section local population growth, business tax incentives, equipment price decreases or competitor spas closing or relocating.
The threats area of a SWOT analysis analyses the external circumstances an organisation faces. The threats should range from local to distant factors that could potentially harm or atrophy an organisation. In this section, a spa would identify the threats that could harm the spa's current growth or status quo. For example, some spas may cite in this section luxury good tax increases, a poor economy, new competitors or do-it-yourself home spa products.
Building a SWOT Analysis
After writing out the strengths, weaknesses, opportunities, and threats sections, the next step is placing the information in a chart. To display a SWOT analysis, construct a two-by-two chart with the strengths listed in the top left square, weaknesses listed in the top right square, opportunities listed in the bottom left square and threats listed in the bottom right square (see References for examples).
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