SWOT Analysis
What is SWOT Analysis?
SWOT is a key component for marketing success. This is the foundation of any business or marketing plan. Quite simply it's an indepth appraisal of your :
- Strengths
- Weaknesses
- Opportunities
- Threats
Your strengths and weaknesses are derived from your internal evaluation and
are those areas that you have direct control over.
Your opportunities and threats are derived from your external evaluation and you can only influence any direction in these areas.
Sign up to our exclusive SWOT analysis email course to comprehensively complete this critical work.
Analysis
Strengths:
What do you do well?
What relevant resources do you have?
What do other people see as your strengths?
What do your customers think go well at your company?
What special qualities does your management team have?
Be very positive in this section - these are areas you can market in your communications and tell
potential customers about.
This analysis will be the basis of strategic decision making. For example, if a strength is that
you have a strong brand recognition in the youth market - but that is only 2% of your sales - what should
you do?
If you have a strong sales force but so do your competitors - this is not a strength - it is a necessity !
Weaknesses:
What could you improve in your business?
What do you think you do badly?
What are your customers telling you they don't like?
What do your competitors do that you don't?
What should you avoid?
Again be very honest in your assessment. Most people find this area the easiest to complete. Everyone knows where
they fall down - it is the strengths that is often the most difficult to complete.
Opportunities:
Where are the good opportunities facing you?
What are the interesting trends you are aware of?
Useful opportunities can come from such things as:
Changes in technology and markets on both a broad and narrow scale
Changes in government policy related to your field
Changes in social patterns, population profiles, lifestyle changes, etc.
Threats:
What obstacles do you face?
What is your competition doing?
Are the required specifications for your job, products or services changing?
Is changing technology threatening your position?
Do you have bad debt or cash-flow problems?
Could any of your weaknesses seriously threaten your business?
Your Marketing Plan. Our Marketing Plan Guide will show you how to undertake this marketing element.
What elements are a competitor advantage, how to ensure that you have come up with
is actually a SWOT when compared with the competition and most importantly, how to use that analysis
in your strategic decision making process.
SWOT examples for you to use
Strengths
No other company is offering the complete integrated service
A proof of concept has been achieved with a blue chip company
We have a strong and experienced management team
Weaknesses
No management or corporate structure is yet in place
We are reliant on just one customer - although they are proven and a high street name
Limited funding for any future development or new customers (cash flow)
Opportunities
Huge market potential in market area A
Linking with existing companies to distribute their products
Threats
Economic slowdown may limit potential