Before Jianjun, I studied art and graduated from a vocational high school. I have some talent and interest in design. I worked as a waiter and foreman in a restaurant. Now Jianjun has taken a fancy to a second-floor store next to an elementary school near his home and wants to open a small hotpot restaurant. Now, let us use SWOT analysis to help this young man, is it possible to make a profit by opening a hotpot restaurant?

In the field of marketing management, we often use SWOT analysis to help us analyze competitive strategies. SWOT includes Strengths, Weaknesses, Opportunities and Threats. We usually use SWOT analysis to help us analyze and consider the advantages and disadvantages of the internal conditions of competition itself, and whether it is conducive to competition within the industry; opportunities and threats are used to explore the external competitive environment and explore the future evolution of the industry. SWOT can help us consider these four aspects, analyze the pros and cons, identify the exact problems, and design countermeasures to deal with them. Dr. Heinz Weihrich proposed in 1982 to present the internal strengths and weaknesses of competitors and the opportunities and threats of the external environment in a matrix form, and use the strategy pairing method to formulate response strategies.

The following are the execution steps of the SWOT analysis method:

Step 1: Describe the competitor's environment.

Step 2: Examine the competitors’ strengths and weaknesses.

Step 3: Identify all external environmental factors that affect competitors.

Step 4: Forecast and evaluate possible changes in future external factors.

Step 5: Use the SWOT analysis framework to develop feasible strategies.

In step 5 above, use the SWOT analysis framework to match the four factors of S, W, O, and T of the enterprise to obtain four strategic types:

Step 6: Make strategy selection and ultimately implement it.

Below, let’s take a look at an example:

In recent years, it has become very popular to eat small hot pot in Taiwan. With many food options, young people, especially women, especially like to choose small hot pot. Hot pot serves as their main meal because in addition to pigs, beef, sheep, chicken, fish, and shrimp, the small hot pot also contains many vegetables. In addition to taking care of the need to eat meat, it also takes into account the nutritional balance theory of consuming vegetables. It gives the carnivores some comfort.

There are also other hot pot ingredients such as eggs, egg dumplings, fish dumplings, shrimp dumplings, tribute balls, fish balls, pig blood cakes, sweet and spicy, cheese balls, etc., plus optional staple foods. (Such as rice, rice noodles, instant noodles, udon noodles, or all-you-can-eat rice), all attract the preferences of young people who do not follow the rules.

In order to cope with the fierce competition, small hot pot restaurants began to provide free drinks, usually including Coke, 7-up, lemon tea, apple juice, orange juice... and other choices, as well as free ice cream ( There are milk, chocolate, matcha and other flavors), free ice cream (usually four or more flavors) and free popcorn to choose from.

With the above information, we try to do a SWOT analysis and propose possible SO, ST, WO and WT strategies:

Finally, I would like to remind readers: many When people analyze the SWOT analysis, they only list the strengths, weaknesses, opportunities, and threats. There is neither subsequent strategic analysis nor an execution plan. Here, I would like to ask readers to pay special attention to the analysis of SO, ST, WO, and WT when studying the SWOT method, and further develop solutions for these analyses, including implementation goals, methods, persons in charge, implementation time, and supervision. People, supervision time points, etc. are clearly listed and conducted according to the table, so that we can truly implement the benefits that SWOT strategy analysis brings to us.