Skip to main content

Using SWOT Analysis to Develop a Marketing Strategy

Image
By

SWOT analysis is a straightforward model that analyzes an organization's strengths, weaknesses, opportunities and threats to create the foundation of a marketing strategy. To do so, it takes into account what an organization can and cannot do as well as any potential favorable or unfavorable conditions related to the company's products or services.

Importance of SWOT Analysis in Developing a Marketing Strategy

Often viewed as a key step related to planning, SWOT analysis is deceptively simple despite the immense value it delivers. The system combines information from the environmental analysis and separates it into two components: internal issues (strengths and weaknesses) and external issues (opportunities and threats).

This level of analysis enables an organization to determine whether there are factors present that will aid in the achievement of specific objectives (due to an existing strength or opportunity) or if there are obstacles that must be overcome before the desired outcome can be realized (due to weaknesses or threats).

What is SWOT analysis?

As mentioned above, the process of SWOT analysis evaluates your company's strengths, weaknesses, market opportunities and potential threats to provide competitive insight into the potential and critical issues that impact the overall success of the business. Further, the primary goal of a SWOT analysis is to identify and assign all significant factors that could positively or negatively impact success to one of the four categories, providing an objective and in-depth look at your business.

Highly useful for developing and confirming your organizational goals, each of the four categories provides specific insights that can be used to cultivate a successful marketing strategy, including:
  • Strengths - Positive attributes internal to your organization and within your control. Strengths often encompass resources, competitive advantages, the positive aspects of those within your workforce and the aspects related to your business that you do particularly well, focusing on all the internal components that add value or offer you a competitive advantage.
  • Weaknesses - Factors that are within your control yet detract from your ability to obtain or maintain a competitive edge such as limited expertise, lack of resources, limited access to skills or technology, substandard services or poor physical location. Weaknesses encapsulate the negative internal aspects to your business that diminish the overall value your products or services provide. This category can be extremely helpful in providing an organizational assessment, provided you focus on an accurate identification of your company's weaknesses.

  • Opportunities - Summary of the external factors that represent the motivation for your business to exist and prosper within the marketplace. These factors include the specific opportunities existing within your market that provide a benefit, including market growth, lifestyle changes, resolution of current problems or the basic ability to offer a higher degree of value in relation to your competitors to promote an increase in demand for your products or services. One element to be aware of is timing. For example, are the opportunities you're catering to ongoing or is there a limited window of opportunity?

  • Threats - External factors beyond the control of your organization that have the potential to place your marketing strategy, or the entire business, at risk. The primary and ever-present threat is competition. However, other threats can include unsustainable price increases by suppliers, increased government regulation, economic downturns, negative press coverage, shifts in consumer behavior or the introduction of "leap-frog" technology that leaves your products or services obsolete. Though these forces are external and therefore beyond your control, SWOT analysis may also aid in the creation of a contingency plan that will enable you to quickly and effectively address these issues should they arise.

    • Turning SWOT Analysis into a Strategic Plan

    Once you've established specific values related to your business offerings within the four quadrants of SWOT analysis, you can develop a strategic plan based on the information you've learned. For example, once you've identified your inherent strengths, you can leverage them to pursue the opportunities best suited to your organization, effectively reducing potential vulnerability related to threats. In the same way, by identifying your organization's weaknesses with regard to external threats, you can devise a plan that will enable you to eliminate or minimize them while improving defensive strategies related to your offerings.

    It's important to remember that SWOT analysis can be influenced (and often quite strongly) by those who perform the analysis. So it's a good idea to have an outside business consultant review the results to provide the most objective plan.
Labels:

Comments

Post a Comment

Popular posts from this blog

Team Work - Meaning and Tips for better Team Work

By
A single brain is not always capable of making key decisions on its own. To come up with an efficient solution, an individual requires the help and advice of others. A team is established when individuals get together on a common platform with the common goal of completing a task. To guarantee optimum compatibility, team members should ideally come from similar backgrounds and have a single aim. To provide their best, the team members must complement each other and function as a single unit in tight cooperation. "There is no I in Team Work," as the saying goes, and each member must put the needs of his team first. Personal interests must take a second seat. Any team's performance is directly proportionate to the relationship between its members and their combined efforts. What is the definition of teamwork? Teamwork is defined as the sum of each team member's efforts toward the fulfilment of the team's goal. In other words, any team's backbone is its ability t
Post a Comment
Read more

Scientists discover a new theory / The fundamental property of light – 150 years after Maxwell

By
Light plays a vital role in our everyday lives and technologies based on light are all around us. So we might expect that our understanding of light is pretty settled. But scientists have just uncovered a new fundamental property of light that gives new insight into the 150-year-old classical theory of electromagnetism and which could lead to applications manipulating light at the nanoscale. It is unusual for a pure-theory physics paper to make it into the journal Science. So when one does, it’s worth a closer look. In the new study, researchers bring together one of physics' most venerable set of equations – those of James Clerk’s Maxwell’s famous theory of light – with one of the hot topics in modern solid-state physics: the quantum spin Hall effect and topological insulators . To understand what the fuss is about, let’s first consider the behaviour of electrons in the quantum spin Hall effect. Electrons possess an intrinsic spin as if they were tiny spinning-tops,
Post a Comment
Read more

19 Types Of Content Writing Services For Your Business

By
  It’s hard to know which type of content writing service is the best for your business.  There are so many  different types of content writing services  out there that it’s easy to get confused. You end up wondering if you’re choosing the right one for you. In this post, we’ll get rid of this confusion, once and for all. I’m going to list out the different kinds of writing services you could use.  By the end of this article, you’ll know whether you need a copywriter, a content writer, or a social media marketer and how they can help you achieve your business goals. This post is also useful for writers who want to hone their writing skills in a specific area. Let’s dive in and learn what types of content writing services exist and when you should use them. (Bonus – if you want to  hire the top 1%  of writers, go to the bottom to learn how). Types of Content Writing Services As we go through the list of content writing services, you will find that many of them overlap. That’s perfectly
Post a Comment
Read more