What is SWOT Analysis?
SWOT Analysis stands for Strengths, Weaknesses, Opportunities & Threats.
SWOT analysis is a commonly used marketing tool, used to analyse the potential strengths and weaknesses of your idea or business action.
For example what strengths does your product have, compared with its existing competitors products in the market.
If we use the example of cars, then your product might have lower exhaust emissions than your competitors rival product. This is a strength, and can be used by your marketing team to promote.
What weaknesses does it have compared to rival products?
To again use the example of a car, your competitors model might have lower exhaust emissions than your model.
If this is the case, then it would not be a good idea to focus your marketing on the emissions levels of your product (even if they were fairly low).
You might like to consider promoting another aspect of your product (car) in your marketing literature.
An example might be the comfort or gadgets that your car comes with as standard, which is better than your competitors rival product.
Basically don’t focus on your weaknesses in your marketing campaign, as it will give your rivals an advantage.
Is there a new and developing area of your industry, that you could take advantage of.
The world is rapidly changing, and the internet has made change even faster.
Back in 1997 I researched and wrote my University dissertation on the business threats and opportunities to business of email & electronic communications.
For many people reading this blog post, you are probably amazed that email was not widely used in business until ‘fairly’ recently.
Entrepreneurs such as https://twitter.com/garyvee , were early to spot the potential of email marketing. Gary also was early to spot the business potential of youtube.
The point here is that there are new opportunities emerging all the time to promote your product or service.
The same is also true FOR your actual product or service, as new technologies such as IOT (Internet of Things), Blockchain and Virtual Reality were not around until recently.
Anti lock brakes on cars were once only on luxury models, but as the costs came down, they are now almost standard on cars.
Ford was an early adopter of anti lock brakes as standard on mass produced cars in Europe, with the launch of the Mark 3 Ford Granada in 1985.
Who remembers VHS video recorders?
At one time they were in almost every home, but now very few people have them.
Your industry changes all the time, and what you offer may suddenly not be valued (and purchased) by society.
An example for those old enough to remember them, is the mechanical typewriter.
The typewriter was a device used for producing a printed page of information, similar to a modern computer printer.
The machine was 100% mechanical (though electric ones existed later on), and was very popular.
If you ran a company producing or repairing mechanical typewriters, and did not spot the threats from modern computers, then you probably went bust!