SWOT analysis is an acronym for strengths, weaknesses, opportunities and threats and is a structured planning method that evaluates those four elements of an organisation. This analytical framework that can help an organisation face its marketing challenges and find its most promising new markets.
Within the organisation and external strengths, such as client relationships.
- What are your strengths?
- What unique capabilities does your business posses?
Possible strengths in marketing might be:
- An innovative product or service
- The location of the business
- The reputation of the brand for being trusted or perceived as being of high quality
Weaknesses are aspects of your business that detract from the value you offer or that place you at a competitive disadvantage.
- What are your weaknesses?
- What do your competitors do better than you?
Possible weaknesses might include:
- Lack of a clear product/service differentiation
- Weak distribution compared with competitors
- Inadequate social media presence
Factors that could lead to your business prospering.
- What trends may positively impact you?
- What opportunities are out there?
Potential opportunities could include:
- The use of technology to develop new products
- Growing demand from overseas markets
- The use of new social media platforms to reach new target markets
Includes external factors beyond your control that could place your strategy, or business, at risk. You have no control over these but you may benefit by having contingency plans in place.
- Do you have solid financial support?
- What trends may negatively impact you?
Possible threats could include:
- Competitors introducing new products at lower prices
- Changes in the economic environment
- Changes in customer tastes and fashions