Introduction
An organization requires tools and techniques for its growth and development and SWOT analysis is one of the easiest and most useful ways of analyzing an organization’s strengths, weaknesses, opportunities, and threats. Let us know ‘Quantitative SWOT Analysis’.
What is Quantitative analysis?
Quantitative analysis is a scientific methodology that uses the data based on facts and numerals, i.e. stats, formulas, graphs, numbers, and percentages to understand behavior and overall performance.
What is SWOT analysis?
SWOT analysis is an easy and useful method to analyze the strength, weaknesses, opportunities, and threats to overcome lacking areas and focus on the well performing areas.
What is Quantitative SWOT analysis?
Quantitative SWOT analysis is a technique used by an organization to compare the internal aspects (i.e. Strength and weakness which are controllable) with external aspects (i.e., threats and opportunities which are uncontrollable) to create Concord among the potential action an organization might take to fulfil its goal and objectives.
How does Quantitative SWOT analysis works?
Quantitative SWOT analysis looks at the factors that are affecting the any organization or business. It helps in evaluation of internal factors, i.e. strengths and weaknesses and external factors, i.e. Opportunities and threats. These Four factors could be understood as:
Strength
The strength of any Institution, organization, or business is beholden by •Qualified Staff
•flexibility
•Financial Stability
•Visualization & Innovation
•Uniqueness
•Technological advancement
•Product quality
Weaknesses
Weaknesses are there in every institution, which are aimed to be overcome and improved, are related to:
•Unskilled staff
•Limited resources
•Location of the office or headquarters
•Not well-connected
•Lack of expertise
•Bad reputation
•Low quality
•No focus on improvement
Opportunities
To attain greater position, one needs to grasp every opportunity come forth. In any business or organization, these opportunities could be:
•Aim at emerging trends
•Training to staff
•Technological Advancement
•Improve Quality
•Focus on Better doing areas
•Competitor’s weaknesses
•Entering low competition business products
•Strategical alliances
•Media coverage
•Good brand image.
Threats
Threats are the external Factors existing in the environment that jeopardize the probability and reliability of organization. These uncontrollable factors could be risk to any business or organization, these could be:
•Low loyalty business partner
•High cost of technology investment
•Unprepared for market trends
•Condition of competitors
•Geographic Location
•Negative image in media
•Emerging competitors
•Uncertain economic environment.
Quantitative analysis is a method that uses data, mathematical and statistical models, numbers,graphs, measurements and research to understand various behavior. It’s a process of collecting and evaluating the data to understand behavior of institutions, organizations, or businesses.
Quantitative analysis is of many types, that are used by quantitative analyst, known as Quants, in various fields of study. Four main types of Quantitative research are: Descriptive, Correlational, Causal-Comparative/Quasi-Experimental, and Experimental Research, which attempts to establish cause-effect relationships among the variables.
Quantitative analysis is generally used in Business, where owners use this method or technique for various purposes such as, trend prediction, to determine the allocation of resources and to manage the resources. This method is mostly used in Business models to understand their well performing assets and even shrinking or down falling assets, it helps them to invest more in profitable assets and grow them more.
What are the uses of Quantitative SWOT Analysis?
Quantitative SWOT analysis is used in Business, factories, organizations, small business and other institutional structure to strengthen themselves, aim to identify and eliminate weaknesses, utilize opportunities and counter certain threats faced.
In any institutional structure, there is a need to understand its working and functionality for growth and attainment of higher levels, the lack of understanding in the structure can lead to loopholes and degradation of the organization, which in long form can result in the downfall of the organization or business.
The growth lies in understanding the institution or company from every possible aspect that can impact its growth. The strengths are needed to more strengthened, weaknesses are needed to be identified and eliminated, seize every opportunity and aim to counter the external threats.
Thus, the use of Quantitative SWOT analysis is to aim at growth of the organization or business being analyzed. Using this methodology could help to identify the well performing assets, these areas are critical success factors which can help a business to grow more.
What are the benefits of Quantitative SWOT Analysis?
The major benefit of Quantitative SWOT analysis is that it helps us to understand our advantages and disadvantages. It’s helps to gain focus on well performing areas and struggling areas. It provides us enough knowledge to improve our business organization or any other institution.
The benefits of Quantitative SWOT analysis includes:
•Wide range usage
It could be used widely to understand pros and cons of any business or organization,as through this method any business can identify its favorable areas and also the factors that are affecting its productivity and growth.
•Scientific method
It is a scientific method of collecting and evaluating the data, which helps analyst to have authentic and reliable information to draw conclusions, which further could be used for providing better and relatable solutions.
•Better Understanding
It helps to understand the structure by providing data from the authentic sources. Further, it helps to gain a better understanding with other members of the business or organization that improve their business relations
•Better planning and strategies
This method helps in understanding the cons of the organization or business, which could be eliminated through proper planning and strategies. It helps organization to prepare relatable and profitable plannings and strategies that help it to sustain in the market.
•Low cost required
It is one of of the easy and useful way to gather data or information as it doesn’t require consultant from outside. The company can hire a person from its staff member with enough information and knowledge about the company and his/her colleagues, that can be used to draw conclusions.
Thus, it’s widely used method as it helps us to easily attain reliable data that could be used to identify weak points of the business, strengthen the business and promotes to achieve higher levels of growth and objectives.
Conclusion:
The method or technique which any organization or business, uses to identify its strengths and weaknesses that can help it to achieve its goals and objectives, is Quantitative SWOT Analysis. This technique could be used to gather authentic and reliable data, as this method is scientific and empirical.
The data of Quantitative analysis is in the form of numbers, stats,graphs, data etc. which helps the analyst to understand the internal and external factors.
Meanwhile, the SWOT analysis is a qualitative method of analysis. The data gathered from this method, qualitative in nature. The analysts compare the collected data and quantify it to draw conclusions
Frequently asked questions
- Is SWOT analysis a qualitative or quantities analysis method?
SWOT analysis is a qualitative method used for identifying organization’s strength, weakness, opportunity, and threats.
- Where is SWOT analysis used?
This methodology is widely used by companies, organizations, business or small businesses, factories etc. It could also be useful for students in research.
