SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans.
Situation Analysis
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\           
Internal Analysis   
   External Analysis
/ \      
           / \
Strengths   Weaknesses   
   Opportunities   Threats
|
SWOT Profile

 

 

 

 

 

Internal Analysis

The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. Factors should be evaluated across the organization in areas such as:
  • Company culture
  • Company image
  • Organizational structure
  • Key staff
  • Access to natural resources
  • Position on the experience curve
  • Operational efficiency
  • Operational capacity
  • Brand awareness
  • Market share
  • Financial resources
  • Exclusive contracts
  • Patents and trade secrets

External Analysis

An opportunity is the chance to introduce a new product or service that can generate superior returns. Opportunities can arise when changes occur in the external environment. Many of these changes can be perceived as threats to the market position of existing products and may necessitate a change in product specifications or the development of new products in order for the firm to remain competitive. Changes in the external environment may be related to:
  • Customers
  • Competitors
  • Market trends
  • Suppliers
  • Partners
  • Social changes
  • New technology
  • Economic environment
·         Political and regulatory environment

SWOT Analysis chart
STRENGTH
·         Your specialist marketing expertise.
·         A new, innovative product or service.
·         Location of your business.
·         Quality processes and procedures.
·         Any other aspect of your business that adds value to your product or service.
WEAKNESS
·         Lack of marketing expertise.
·         Undifferentiated products or services (i.e. in relation to your competitors).
·         Location of your business.
·         Poor quality goods or services.
·         Damaged reputation.
OPPORTUNITY
·         Mergers, joint ventures or strategic alliances.
·         Moving into new market segments that offer improved profits.
·         A new international market.
·         A market vacated by an ineffective competitor.
·         A develop market such as the Internet.
THREAT
·         Price wars with competitors.
·         A competitor has a new, innovative product or service.
·         Competitors have superior access to channels of distribution.
·         Taxation is introduced on your product or service.
·         A new competitor in your home market.

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