Friday 30 November 2018

SWOT Analysis to Develop Marketing Strategy

SWOT analysis is a direct model that analyzes the strengths , weaknesses , opportunities (opportunities) and threat (threat) of the organization. To create the foundation of marketing strategy. To do so, it is necessary to take into account what the organization can not do as well as the potential conditions. Whether profitable or not, regarding the company's products or services.

SWOT analysis is often seen as a key step related to planning.  The SWOT analysis is actually very simple but the value it provides is huge. The system combines information from environmental analysis and splits it into two components:

(1) Internal issues (strengths and weaknesses) and

(2) External problems (opportunities and threats).

This level of analysis allows an organization to determine whether there are factors. That will help achieve specific goals (due to existing strengths or opportunities)?. Are there any obstacles to overcome before the desire result can be realized (due to any weakness or threat)?

As mention above, the SWOT analysis process evaluates your company's strengths, weaknesses, market opportunities and potential threats. To provide an insight into the competition of potential and critical issues that affect the overall success of the business.

  1. Strength

    This category is a positive internal attribute for your organization which is within your control. Strengths often include the resources, competitive advantage, positive aspects of those in the workforce. Even and aspects of your business that you do very well. Focusing on all the internal components that add value or give you a competitive edge.

  2. Weakness

    Factors that are under your control have not diminish your ability to gain or maintain competitive advantage. Such as limited human resource expertise, lack of resources, limited access to skills or technology, poor service or poor physical location.

    This weakness encapsulates the negative internal aspects of your business that reduce the overall value of your product or service. This category can be very helpful in providing an organization assessment. As long as you focus on accurate identification of your company's weaknesses.

  3. Opportunity

    Opportunities are external factors in order for your business to exist and grow in the marketplace. These factors include the specific opportunities that exist in your market that provide benefits, including market growth, lifestyle changes, current problem solving, or the basic ability to offer higher levels of value in relation to your competitors to promote increased demand for products or service.

    One element to watch out for is timing. For example, can your chances continue to run or there are limited opportunities?

  4. Threat

    Threats are external factors beyond your organizational control that could potentially place your marketing strategy or overall risky business. The main threat that is always present is competition. Other threats can be price increases by suppliers, government regulations, economic downturns, negative press coverage, consumer behavior shifts and technological developments that make your product or service obsolete. Although this power is external and therefore beyond your control, the SWOT analysis can help create a contingency plan that will enable you to address this issue quickly and effectively.

Turning the SWOT Analysis into a Strategic Plan

Once you set specific values ​​related to your business offerings in the four SWOT analysis quadrants. You can develop a strategic plan based on the information you have learned.

For example, once you have identified your inherent strengths, you can use them to pursue the most appropriate opportunities for your organization, effectively reducing the potential vulnerabilities associated with threats. In the same way, by identifying the weaknesses of your organization with respect to external threats, you can devise a plan that will enable you to eliminate or minimize them while improving defensive strategies related to your offer.

It is important to remember that SWOT analysis can be influenced (and often strong enough) by those who do the analysis. So it's a good idea to ask your outside business consultant. To review the results to give you the most objective plan.

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