What Is SWOT Analysis in Marketing & How to Conduct
SWOT analysis is a framework for strategic planning and marketing. It provides you with the knowledge to make plans to improve internal factors in your business. SWOT is defined as an acronym for the following:
What's more, SWOT is a key strategic planning tool used to:
- Isolate potential threats
- Conceive feasible solutions
- Eliminate each problem as a continuing concern
Wouldn't you like to have this effective strategy on your side? SWOT gives you competitive advantages that you can use in various parts of your business, including:
- Brainstorming techniques
- Marketing strategy
- Business planning
- Human resources
- Customer service
We will explore other benefits of SWOT in a moment. But first, read on to learn how to perform a SWOT Analysis.
Here’s What We’ll Cover:
Performing a SWOT Analysis
You divide SWOT into 4 categories under the SWOT matrix. You then place notes under each heading to define its relevance to the problem you are analyzing.
High-Level Representation: SWOT analysis does not define individual action items. Nor does it define an overall strategy. It only states which variables you should consider.
Redundant Information: Don’t let bullets become cluttered by too much information. Your company must focus on specific and quantifiable points.
Respect Opinions: Different participants may view some of these points in different ways. Ultimately, this is valuable to your business and allows everyone to have a different view of the problem.
Example of SWOT Analysis
The following analysis looks at each internal and external factor and its relevance to business operations. First, we will review the SWOT analysis example, and then we will check the individual action plans that have emerged.
- Powerful engineering
- Good sales network
- Quality products
- Strong R&D
- Slow response to customer requests
- Sluggish response to market trends
- High manufacturing cost
- Long delivery time
- Regulations and restrictions are being relaxed
- Customized products required by the market
- Required R&D projects
- The market is growing
- Vulnerable to the influence of overseas competitors
- New technology makes products obsolete
- The competition has fresher ideas
- Increased competition
Now that you’ve seen some examples of SWOT in action let’s shift our focus to its benefits. As you’ll see, SWOT is an effective tool no business should be without.
Why Use the SWOT Analysis
Companies must honestly evaluate their strengths and weaknesses. Unfortunately, it’s natural to focus too much on what you do best rather than what needs improvement. Don’t let this happen. Take a moment to honestly explain what your company needs to improve on.
This can be used to counter threats in the market where competitive technology may make your company’s products obsolete.
Your company should focus on eliminating its weaknesses with long delivery times.
Take Advantage of Opportunities
Market growth represents your opportunities. If it takes too long to ship your finished product, your company cannot close its order within a reasonable time.
Minimize Any Threats
Your company may try to address its high-cost weaknesses to ensure that you minimize the threat of your competition.
The SWOT analysis plan is indeed helpful. It forces everyone to clearly define the internal and external attributes that your company must face. Success means that your company will seize opportunities while eliminating threats.
Results of SWOT Analysis
Suppose that part of your analysis produced the following results:
Strengths: You can obtain marketing campaign funds for anything that delivers clear results.
Weaknesses: You are not using social media marketing to help expand your customer base.
Opportunity: You can actively take advantage of the growth in your industry.
Threat: You are facing emerging competitors who are proficient in online marketing.
Now, let’s look at how you can translate these results into actionable strategies.
Use your marketing budget to create powerful social media marketing campaigns and track their results. This will use your company’s strengths to offset its weaknesses. It will also enable you to take advantage of growth opportunities. And finally, you'll reduce threats from emerging competitors.
When you have identified all possible connections, it’s time to prioritize the alternatives. For example, connections not listed above may produce better results and require less capital to implement.
After completing your SWOT analysis, you will better understand your marketing activities. This will help your overall business. In addition, your stakeholders are more likely to agree on strategies to achieve your marketing goals.
The SWOT Analysis is a fundamental tool that will help you make the most of your business. Many businesses are aware of their strengths. However, they often fail to see their weaknesses. Thanks to SWOT, you can be sure to identify all aspects of your business. If you’re interested in even more small business support, be sure to explore our Resource Hub for valuable information.