For those of you following along at home you may have noticed that the topics I am covering are steps you take when creating a marketing plan. So if you play along you could create an awesome plan, eventually.
SWOT Analysis
Once you know your business objective doing a SWOT Analysis is a tool to help you look at your organization and the environment and determine if your objectives are attainable. Beyond identifying what sets you apart, which we looked at in Differentiation, going through this exercise can help identify areas where you are weak compared to your competition, exterior factors that can threaten you business and new opportunities. Consider the external factor of technology, the internet was a huge threat to businesses that had local markets tied up and it was a limitless opportunity for those who wanted to expand their market. What’s happening that can change how you do business?
Strengths
Also referred to as core competencies are the areas where your business is unique or better than the competition. Think brand strength, personnel, patents, product, service, selection, procedure, quality, stability, policies, expertise, access, location or innovation.
Weaknesses
Weaknesses are attributes that may keep you from your objectives. Areas in which your competitors are strong and you are lacking. These can be brand, reputation, experience, pricing/cost, funding, location, undifferentiated product, poor quality or service.
Opportunities
External conditions that benefit your company and help you grow. Things to consider are product, expansion, location, customer needs, trade, technology, distribution chains, related markets, conversions.
Threats
Changes in the marketplace that make reaching your objectives more difficult. These can include consumer demand, competition, technology, regulations, pricing, saturation, suppliers.
As always it’s what you do with the information that matters. I like this table to consider strategies that may come out of your analysis.
| Strengths | Weaknesses | |
| Opportunities | S-O Strategy
Focus on opportunities that fit strengths. |
W-O Strategy
Overcome weaknesses to take advantage of opportunities |
| Threats | S-T Strategy
Use strengths to overcome threats. |
W-T
Defend against threats. |
What strengths do you have that match the opportunities?
What weakness or threat can be turned into a strength or opportunity?
