SWOT Analysis
Learn How to Do This Right & it's...
Goodbye Competition
Market Research on Steriods!
Swot Analysis is a very useful technique to analyse your business and find your competitive edge.
Marketing intelligence
is one thing... ... this is most definitely something else! The result of internal analysis and external research, it’s actually an acronym for strengths, weaknesses, opportunities and threats. Strengths & Weaknesses – The internal aspects generally considered to include marketing, financial, manufacturing and organisational. Opportunities & Threats - External issues such as demographics, the internet & other technological developments and the local or world economic situation.
Here’s a Simplified Example of a SWOT Analysis -
Strengths• High performing sales team
• Wide spread company recognition
• Well established consumer base Weaknesses • Prices perceived as too expensive
• Increases in raw material cost affecting retail prices
• Brand identity inconsistent Opportunities • Internet growth presenting new opportunities to increase sales
• Boutique markets emerging
• Changing market trends Threats • Sales threatened by new, low cost competitors coming into the market.
• Some wholesalers planning to market directly to the consumer
• Rise in popularity of competitors niche product More than just
marketing information,
a SWOT analysis can be used for the entire company or a small department within a large company. Wherever the area of focus is, the results will vary, even between companies competing in the same industry. For example, one company may see the internet as a huge opportunity whereas a not-so-savy competitor may view it as a huge threat.
How Important is it?
The primary benefit of this wonderful
competitive intelligence
tool is its ability to help clarify and summarise important issues and opportunities that a business may be presented with.It plays a major role assisting a business to focus on important aspects and strategies. The desired result is to – Maximise strengths and minimise weaknesses in order to Take advantage of external opportunities and overcome the threats. The SWOT analysis template is normally presented as a grid, comprising four sections, one for each of the headings: Strengths, Weaknesses, Opportunities, and Threats.
The Greatest Advantage.
The greatest advantage of a SWOT analysis is they’re easy to do and they cost nothing, just some time.Any business that’s aware of market threats and its own weaknesses is in a very strong position, strategically. The analysis will expose the strengths the business needs to defend itself against these threats. It can help generate new ideas as to how a company can use a particular strength to defend against threats in the market. If a company is aware of the potential threats then it can have responses and plans ready to counteract them when they happen.
The Disadvantages.
Usually, a typical analysis is a basic list and not a scientific document. A company may not be sufficiently focused on how it’s going to achieve the objectives if too much time and energy is wasted on creating lists.Prioritising also suffers with a list option. A large number of threats may be discarded by creating a bigger list of opportunities whereas the threats may be way more significant. Used correctly, this analysis is a powerful business tool but more often than not, it’s used in an informal fashion. You can purchase software to achieve more scientific results and give the analysis a better structure. Spend time & effort assembling an accurate analysis so it’s much more than just a tick list. Done correctly it will allow you to measure your company’s strength against your competitors. You may have the best sales team that you’ve ever had but... your competition might be better. And... you may never, ever know without the benefits of a SWOT analysis.
Modern Net-Wit:
"Monica Seles - I'd hate to be next door to her on her wedding night" ....................................................................Sir Peter Ustinov
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