SWOT Analysis
A SWOT analysis focuses on a company’s internal and external environment. It’s a good place to start looking at a company’s current position in terms of marketing, but also to start considering the external market. You can then carry out a PESTLE analysis to analyse the external market in more detail.
A SWOT analysis can be used generally for business activities, but when using it to plan a marketing campaign, the focus should be on the aspects related to marketing. SWOT is an acronym corresponding to the following:
S(trengths)
W(eaknesses)
O(pportunities)
T(hreats)
Strengths
Strengths of a business are the things it does well or things that have already been successful for the company, the things that give the business a competitive advantage. A business may have strong social media channels or have a clear and recognisable brand.
Weaknesses
Weaknesses are the things that a business doesn’t do as well or that are weak and need improvement.
Is there a lack of resources or expertise in the business? The business may have a strong brand but lack social media marketing expertise. Or perhaps the business’s products have potential, but the branding is weak.
Opportunities
Opportunities are those external things that the business can take advantage of, for example, there may be an opportunity to appeal to a new market or create a new product. Is there a gap in the market? A gap in the market relates to a need that has not been met by the goods already available.
Threats
Threats are the things that can have a negative impact on your business. In marketing terms this could be something your competitors are doing but it can also come from changes in customer taste or government policy.
Looking at your opportunities and threats will give a business some idea of its external environment. In order to better understand the external environment, you can look at a PESTLE analysis.