Many businesses know they need a strategy—but don’t know where to start. One of the most effective first steps to evaluate business performance or plan strategically is to conduct a SWOT analysis.
Some people may recognize SWOT as a tool for self-evaluation. In reality, it’s also widely used in business to assess current conditions and gain insights for future strategies.
In this article, you'll find:
- Explanation of SWOT analysis
- The ways ERP helps you fill the components in SWOT
- The guiding questions to help you identify your SWOT
So, what exactly is SWOT analysis? How do you do it? Let’s break it down below. ⬇️
What Is SWOT Analysis?
SWOT stands for four key components used in evaluating a situation. The main purpose of a SWOT analysis is to assess business performance, understand how close you are to your success benchmarks, and determine the next strategic steps.
SWOT is divided into internal vs. external and positive vs. negative factors:
Strengths
These are positive internal factors. Ask yourself: What are your business’s advantages? Examples:
- Strong brand reputation
- Experienced team
- Superior technology or products
- Loyal customer base
- Efficient operations
Weakness
These are internal factors that limit your business. Ask: What are your internal challenges or limitations? Examples:
- Slow or inefficient processes
- Limited capital or resources
- Low employee retention
- Lack of innovation
Opportunity
External conditions that can support growth. Ask: What external trends or gaps can you leverage? Examples:
- Emerging market trends
- Favorable regulations
- Unmet customer needs
- New technologies
Threat
External risks that may hinder growth. Ask: What factors outside your control could harm your business? Examples:
- Aggressive competitors
- Restrictive regulations
- Economic downturn
- Supply chain disruptions
After identifying each component, the next step is to build actionable strategies. You can even combine two elements to form strategic insights:
Strength x Threat
How can strengths help you minimize threats?
Weakness x Opportunity
Can you overcome weaknesses by seizing available opportunities?
Strength x Opportunity
What strengths can you leverage to seize opportunities?
Weakness x Threat
How can you reduce weaknesses to avoid threats?
Using ERP for SWOT Analysis
ERP doesn’t just help with streamlining and integrating your operations, it also gives you data-backed insights that make SWOT analysis more powerful and precise.
Here's how different Odoo modules can help you fill out each component of your SWOT analysis:
Finding Your Strengths
ERP provides data that highlights your strengths:
- Sales Module: Identify top-selling products, market trends, and high-performing sales reps
- CRM: Monitor conversion rates and customer retention
- Inventory: Track fast stock turnover and low waste
- Employees: View productivity and satisfaction metrics
- Accounting: Spot healthy profit margins and positive cash flow
📌 Example: A business sees rising revenue from three loyal customers—this reflects strong product value and CRM effectiveness.
Spotting Weaknesses
ERP reveals blind spots in your operations:
- Helpdesk Module: Track recurring complaints and resolution delays
- Manufacturing: Identify bottlenecks or low-performing workstations
- Projects & Timesheets: Catch budget overruns or productivity issues
- Sales Funnel: Analyze drop-offs and long sales cycles
Identifying Opportunities
ERP helps you spot external opportunities:
- eCommerce Trends: Highlight high-traffic regions or untapped segments
- Marketing Analytics: Discover channels with best ROI
- Customer Surveys: Gather insights for product improvement
- Upsell/Cross-sell Reports: Find unmet demand in existing base
📌 Example: A spike in mobile traffic could indicate a need to optimize your mobile shopping experience.
Recognizing Threats
ERP enables early detection of external risks:
- Purchasing Data: Watch out for overreliance on a few suppliers
- Invoicing Reports: Spot increasing late payments or bad debt
- HR Module: Detect turnover trends in key teams
📌 Example: If your ERP shows more frequent supplier delays, you’ll be alerted before customer satisfaction is impacted.
SWOT Guiding Questions
In addition to ERP, these guiding questions can help you brainstorm each component:
Strengths 💪
- What sets you apart from competitors?
- Which products or services are most profitable?
- What do customers praise you for?
- What key assets does your company have (team, tech, brand)?
- What internal processes run more efficiently than the industry average?
Weakness 🚩
- Which operations frequently cause issues?
- What do customers complain about most?
- What skills or resources are missing from your team?
- Are there under-performing products or services?
- Are any workflows dependent on just one person or process?
Opportunity 🔎
- Any trend emerging in your market?
- Are there unmet customer needs?
- Can you target new market segments?
- Any upcoming partnership or expansion possible?
- Any technology that could improve your business?
Threat ⚠️
- Are new competitors entering your market?
- Are customer needs shifting away from your products?
- Are there economic or regulatory risks looming?
- Any risk of losing key employees or burning out your team?
- Are you too dependent on a specific vendor, technology, or market?
Doing SWOT analysis based on intuition alone is no longer enough. You need accurate, integrated data to craft strategies that actually work. That’s where ERP platforms like Odoo shine.
With real-time insights across your operations, you can visualize your strengths, weaknesses, opportunities, and threats more clearly to take smarter, faster, and more impactful decisions.
It’s time to upgrade your SWOT analysis with the power of technology, and the first step starts with ERP :)