One of the first steps in developing your marketing strategy is to perform a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Environmental factors internal to the firm usually can be classified as strengths or weaknesses. External factors are classified as either opportunities or threats. Performing a SWOT analysis will give you a clear understanding of marketing environment and landscape of the market as well as provide information that is helpful in matching your company's capabilities and resources to the environment in which it operates.
- (Internal Analysis)
Strengths are a firms resources and capabilities not shared with the competition, that are used to develop a competitive advantage. Examples include:
- (Internal Analysis)
The absence of certain strengths are viewed as weaknesses. In some cases a strength may also be considered a weakness. For example, a large manufacturing capacity may be considered a strength that competitors do not share, it may be considered a weakness if the large investment prevents your firm from reacting quickly to changes in your strategic environment.
- (External Analysis)
External environmental analysis may reveal new opportunities for profit and growth. Some examples include:
- (External Analysis)
External environmental changes may also present specific threats to your firm. Examples include:
Now that you understand the basics of the SWOT analysis, dig a little deeper and perform a SWOT analysis on your firm. Let us know how it goes in the comments ;)