I have been working with and coaching a great entrepreneur who needed to pivot their business. We worked through both the SWOT analysis and the 5 Forces Analysis. As you probably know, SWOT means Strengths, Weaknesses, Opportunities and Threats. In this case, we reviewed the SWOT analysis of the current business as well as potential business opportunities. We also performed the 5 Forces analysis. What is different about the 5 Forces analysis is that it focuses on industry structure. In this case, it became clear that the structure of the existing industry was, quite simply, bad and getting worse. Understanding that this was an industry in decline and the structure would not allow for a productive, successful business made it much easier to walk away from the existing business and wholeheartedly embrace some exciting new opportunities. Watch the video below to learn a little more about these powerful analysis frameworks. Which one (or both) will best help you move your business forward?
For further discussion of these two different strategyic analyses, see “A poor strategic environment (#9) can deep-six company profitability.”