This interaction results in four quadrants that reflect the four strategies to be adopted by the company, which we define for its interest according to the generally accepted criterion: Focusing on the strengths and weaknesses of a company allows work teams to find solutions and strategies to overcome. Law firms are corporations like many others and look more like small businesses than large corporations, although there are large law firms with multiple branches. However, because of the way they are created, these businesses have certain intrinsic strengths and weaknesses that they must overcome to operate as successful businesses. A SWOT (strengths, weaknesses, opportunities and risks) analysis should highlight these aspects of the business for strategic planning. To continue with the same example, for the Samsung brand, here are its opportunities as a company: to conduct a final review to confirm that all the elements define the current situation of your business. Finally, create a schema that will help everyone understand it smoothly. If you don`t know how to do it, you can find many free templates on the web with different designs that you can customize to match your company`s image. Strengths are the attributes of the organization, that is, the best they have as a company. Positive factors will help create opportunities and gain a competitive advantage.
What circumstances can improve the company`s situation? What market trends can benefit us? Is there a situation in the country`s economy? What technological changes are taking place in the market? What changes are taking place in legal and/or policy regulations? Since, as I said, this is a technique used by companies, it can also be used by law firms. It is clear that there is a huge supply in the legal sector, where competition is increasing. For this reason, a competitive strategy must be designed that sets us apart from other law firms. SWOT analysis allows for a broader overview of the business, from competitive advantages to difficulties that may affect it. Threats are negative aspects that affect the business and require a strategic plan to prevent or mitigate their impact. Opportunities are the situations or positive elements of the environment that need to be harnessed to attract more investment or benefits for their future and growth. Now that you know all the elements of a SWOT analysis and how to do it step by step in your business, we`re sure you`ll find some interesting data that you may have overlooked. In addition, you can use HubSpot`s free templates to perform a SWOT analysis of your business. Here you will find: Entry of foreign companies: Ability to serve foreign customers. Weaknesses are the weak or negative points of your business. It is important that the team is honest about all aspects that could affect the reputation or growth of the organization. Maybe they don`t have a dedicated customer service team or they have a digital marketing strategy, so information and interactions on their social media and website are scarce or negative.
In this case, the strengths are the positive qualities of the company that serve as inspiration or model. These are differentiating elements that distinguish the company from others. On the other hand, weaknesses are negative elements or low points of the company that can affect the achievement of objectives and hinder the achievement of expected results. After all, threat is what harms the industry, brand, company or organization that is external. These can become opportunities to achieve the goal. Maybe there is strong competition or there is social instability. Here are some examples: As we mentioned at the beginning, this model became so famous that people and companies began to occupy it in different areas. This resulted in different types of SWOT matrix, which we explain below: In the internal diagnosis, strengths and weaknesses are analyzed, taking into account the structure of the company, functionality, management and financial aspects that influence the operation. Offensive strategies: Weaknesses are overcome by seizing opportunities. The company is exposed to external threats without the internal forces necessary to fight against competition.
No matter what they know about the law, lawyers generally have little experience in business administration, which is acquired after prolonged management of a business. Aspects such as accounting, problems with employees, operations administration, facilities management, and leadership are not taught at law school. It is common for lawyers to acquire these skills over time, and an analysis can measure a law firm`s commercial weakness by assessing its administrative resources. Competition between law firms remains the biggest threat to companies dealing with legal issues. More and more lawyers and companies are trying to make their way into the same saturated markets. Therefore, law firms that are more innovative than others because they are dedicated to a niche market or certain legal aspects stand out from their competitors, especially if they have a history of winning litigation in their area of expertise. A SWOT analysis should compare the availability of experts and the rate of cases won/lost with the universe of customers/users concerned in order to assess the degree of threat of competitors to a listed company. However, it is not the only technology that can take advantage of new opportunities for a company in the legal field.
There are more and more areas of law firm activity that are changing in response to COVID-19. The weaknesses of the SWOT analysis represent the internal weaknesses or disadvantages of a company. These depend on the same organization and put it at a disadvantage compared to their competitors. This can be a lack of skills and experience or even equipment or technology. An ERP (Enterprise Resource Planning) is the most commonly used management software in companies because it is an excellent support for all areas of an organization. This resource planner has two famous representatives: SAP and Oracle. This time, we will perform an Oracle SWOT analysis to define its attributes and visualize its panorama in the future. Defensive strategies: Threats with forces are avoided. The company is prepared for threats.
This group should consist of at least one member from all areas of the business, from the manager to the most experienced salespeople. It is necessary that all levels of your organization are involved so that they review the analysis and do not miss some important details. Walmart is a fairly established multinational in the market that adds success year after year. It is one of the companies that benefited the most from the restriction in 2020, with panic buying increasing by only 8.6% in Mexico, which increased overall sales by 8.6%. In this SWOT analysis, you can visualize all the strengths of such a large retail company. Due to the COVID-19 crisis, the challenges faced by law firms are already known. But also hand in hand with this situation, a number of opportunities have arisen for a company, also in the legal field. Studios have been forced to offer advice in a variety of practice areas that help diversify their clients and ensure the longevity of the business. Right now, the most important thing for businesses is to put customer needs first. And for that, they need to make some changes. Needless to say, this technique can be used satisfactorily by law firms (no one today denies that companies are real companies), and in fact, our firm has been using this technique for years. What is fascinating about this analysis is that when you work in the phases, you realize the reality of the office in all areas of the company (management, human resources, finance, professionals, administration, marketing, etc.).
As you progress through the analysis, you have material that you can use to develop a diagnosis of the business and thus determine the strategy we really need. What are the individual elements of the SWOT analysis? We can say that two of the elements of the analysis focus their attention on the internal and current situation of the company, while the other two elements focus more on the external situation, the environment and in a perspective of the future. Find out what our shadow solar panel company would add in their SWOT analysis.