What is SNW analysis and how to apply it in your company

SNW-analysis is used to determine the competitiveness of the enterprise, to study its internal environment, to identify points of growth, to gain advantages over competitors. To conduct it, the entire functionality of the company is divided into separate blocks. Each of them is considered separately. This technique is a more in-depth variation of the SWOT method used to analyze strengths and weaknesses.

What it is

This is a way of assessing internal factors affecting the functioning of the company. SNW-analysis assesses the state of its organizational structure, as well as production, marketing, logistics services, and other areas. This abbreviation consists of the English words Strength, Neutral, Weakness and is deciphered as follows:

• S are the strengths of a company that can be seen in certain parts or areas of its business. These include: market share, product quality, competitive advantages.
• N are neutral values. These are stable moments. For example, structures and buildings owned by the company, its equipment, fixed assets. At the same time, the efficiency of use of each resource is assessed separately.
• W – weaknesses or vulnerabilities, existing, potential risks, problems of the company. In this segment it is important to identify weaknesses that have a direct impact on its condition. For example, if it turns out that the product is of low quality, it is necessary to deal with the quality of its raw materials.

All factors under study are assigned neutral market average values (N). Then they are compared with real indicators, finding out how much they correspond to the norm and how they differ from similar indicators of competitors. The study is carried out to identify the positive aspects of the company’s work, eliminate the detected shortcomings and determine the average indicators that clearly demonstrate the activities of the firm.

What SNW analysis is for

This methodology is used to analyze the state of the organization in order to improve its competitiveness. The study demonstrates the composition, hierarchy of departments, shows what processes occur within the company, how they affect its performance and development. Helps to assess the effectiveness of the management system, marketing, production. It is the basis for strategic planning.

SNV-analysis shows in which areas the company lags behind its competitors and to what extent, in which positions it is ahead of them. On its basis, a further development plan is built, which can be realized in two directions:

• The positives are further refined and scaled;
• Negative factors that inhibit its performance are identified and converted into neutral factors.
• Neutral positions are being reinforced.

To stay ahead of the competition, a company should have a neutral position in most of the indicators studied and a few strong positions. This will allow it to feel confident in its market niche.

Knowing the strengths of his company, the manager can use them to the greater advantage of the business, and turn the shortcomings into advantages that distinguish it among competitors.

For example: You launch a line of fashionable clothes made of quality materials. Because of this, the cost of production is quite high, so you only have a few models in your range.

Your disadvantages: high selling price and limited assortment. But, these same indicators can be used in a positive aspect. Your clothes can be afforded by people with a stable income. They are satisfied with its design, quality and uniqueness, so they will buy things regularly. That means you will get a steady income from sales.

Advantages and disadvantages

SNW-analysis has the advantages of SWOT-methodology, but at the same time it allows to study the object in more depth. Among the advantages of its application it is worth highlighting:

1. Highlighting the winning aspects of the company’s operations;
2. Obtaining recommendations to improve the company’s operations;
3. Ability to qualitatively survey the internal and external environment of the company.
4. Evaluation of each division, department of the enterprise in figures.
5. The methodology is characterized by simplicity and is suitable for all business owners and managers. It does not require in-depth knowledge of business analytics.

There are disadvantages to the approach as well:

• It evaluates exclusively internal factors of the company, without taking into account the influences of the external environment.
• Market averages of internal indicators of other companies operating in the industry are not always accurate and reliable.

Methodology and examples of SNW analysis

The technique is based on a qualitative assessment of the company’s internal environment. In such a study, for example, for salaries, it is not the size, but the level: (W) – “below market”, (T) – “average”, (S) – above market. To conduct SNW analysis, the following steps should be performed:

1. Identify factors to be evaluated.
2. Calculate market averages.
3. Evaluate the company on each factor.
4. Draw conclusions by making a list of recommendations.

What is the object of SNW analysis

These are factors, parameters that directly or indirectly affect the company’s efficiency, revenue, and competitiveness. Special attention is paid to elements that consume a lot of resources, as well as areas where mistakes are made, difficulties in work arise. In the course of the analysis, the following aspects of the company’s activities are investigated:

• Business Strategy;
• Management System;
• Marketing, production level;Marketing, production level
• Quality of product, services, their competitiveness in the market;
• Fixed Assets;
• Finance;
• State of the Labor Force;
• Corporate Values.

These elements can be further divided into components. For example, when studying labor resources, such indicators as personnel qualification, salary level, and the company’s talent pool are considered separately.

Calculation of market averages

In the course of the SNV analysis, the company is compared with its competitors. For this purpose, the necessary data is collected from public financial reports, marketing research. Websites, advertising materials of competing companies, mass media and other sources are also used to find information. Next, the average market (neutral) values for all the factors under study are determined.

How to work with the results of SNW analysis

All indicators of the enterprise are compared to neutral values. They are assigned one of three levels: weak, neutral or strong.

After the study, the manager should have a clear picture of the company’s activities, with all possible advantages and disadvantages. On its basis, conclusions are drawn, lists of recommendations are drawn up to eliminate bottlenecks and strengthen the firm’s strong positions. A goal is formulated, deadlines are set, and specific measures are outlined to achieve the set objectives.

Technically, an SNW analysis is a summary table of a similar type:

Criteria investigated		Analysis
	S (strong qualities)	N (neutral)	W (weaknesses)
Strategy
Management structure
Finance
Labor resources
Marketing

The first column of the table lists all the factors that affect the profitability of the organization, e.g.:

• Costs;
• Level of technical equipment;
• Investment Availability;
• Market Reputation;
• Operation of the distribution system, sales;
• Relations with government agencies, other indicators that can be researched and studied.

A detailed analysis of each position gives an opportunity to improve the company’s business processes and gain advantages over competitors. First of all, “problem areas” are written down in the table with a precise indication of deadlines for their correction:

Criteria investigated		Analysis
	S (strong qualities)	N (neutral)	W (weaknesses)
Quality, level of advertising	20.10.2024	←
Квалификация персонала		10.11.2024	←

A comment column can also be added to the table, spelling out specific tips for improving the situation.

How to perform SNW analysis in LeaderTask

To obtain correct results, this study should be performed systematically. It is better to do it at regular intervals. A special digital service LeaderTask can be used to structure information and plan measures to improve the organization’s performance. The program combines the capabilities of a scheduler and a task manager. It can create tables for individual products manufactured by the company, or cover all processes, resources, basic structures of the enterprise for a complete and comprehensive study of its activities. Such analysis will be useful for revealing the real state of the organization and determining its development potential for the coming years.

The program includes many useful functions for management, strategic and operational planning. There is a convenient system of notifications about important events and new tasks. In LeaderTask it is easy to make detailed action plans aimed at changing current events. Control their execution at every stage. Analyze the results and draw appropriate conclusions. The program works on all digital platforms, including offline mode, without internet.

Conclusion

SNW-analysis is an informative, useful tool for any operating company, allowing it to visually assess the effectiveness of its development, identify weaknesses, and strengthen its advantages. Based on the results of the study, strategic plans are drawn up. With their help it is possible to use the shortcomings in favor of the enterprise, gain advantages over competitors, get rid of mistakes and find further points of growth.