In my last post in the Marketing 101 series, I introduced you all to the Marketing Mix Model, today I’ll talk you through another great marketing model: SWOT analysis.
SWOT analysis is a simple tool that is probably engraved on the brains of every marketing student. I feel a little nostalgic writing about the good old SWOT analysis because this time of the year is when all of my exams would take place and I’d have to do maaannnyy SWOT analyses as it was a quick and effective way to analyse a company or a product. Then I would end up looking like this:
So … What Is SWOT?
Although not the most advanced of all marketing models – it is a great tool that is particularly effective in planning and decision making. It is designed to give an insight into the internal and external performance of the business or product. The internal part is done through evaluating the strengths and weaknesses; the external part is opportunities and threats, thus the name:
Uses of SWOT
It helpful for:
- Uncovering opportunities
- Managing and eliminating threats
- Planning business strategy
- Reviewing strategy, position and direction of the business
- Evaluation of own strengths and weaknesses
- Competitor analysis
- Development of a business or a product
Performing a SWOT Analysis
This is what it typically looks like:
For each of the categories try and be as objective as you can and analyse in detail. Here are the factors you would typically address for each of the factors.
- What is your USP?
- What do you do better than your competitors?
- Are your customers loyal?
- Is your brand reputation strong?
- What is your competitive advantage?
- Any cost advantages?
- Do you have a niche product?
- High market share?
- Market leader?
- Market influencer?
- Things you need to improve?
- Things that could lose you sales?
- Weak reputation?
- Weak brand name?
- High set up costs?
- Lack of skills or technology?
- Limited resources
- Market trends
- Market demand
- Market developments
- Competitor weaknesses
- USP changes to meet new demands
- New market
- Change in influencers
- Political changes
- Economical changes
- Social changes
- Technological changes
- Environmental changes
- Legal changes
- Competitors inventions
- Changes of market demand
Got the Info … Now What?
After you’ve done your analysis you might be wondering what you could do with the overflow of information you have in your hands. Here is a formula:
Match your strengths with opportunities
Covert your weaknesses into strengths
In my next post I will be talking you through another useful marketing tool: PESTEL and it is usually done after a SWOT, stay tuned for that!