A tool used by organizations to help the firm establish its Strengths, Weaknesses, Opportunities and Threats (SWOT). A SWOT analysis is used as a framework to help the firm develop its overall corporate, marketing, or product strategies.
Note: Strengths and Weaknesses are internal factors which are controllable by the organization. Opportunities & threats are external factors which are uncontrollable by the organization.
Strength examples could include:
A strong brand name.
Expertise and skill
Weaknesses could include:
Low or no market share.
No brand loyalty.
Lack of experience.
Opportunities could include:
A growing market.
Increased consumer spending.
Changes in society beneficial to your company
Threats could include:
Government policy e.g. taxation, laws.
Changes in society not beneficial to your company.
A SWOT Analysis is an excellent tool to use if the organization wants to take a step back and assess the situation they are in. Issues raised from the analysis are then used to assist the organization in developing their marketing mix strategy. A SWOT analysis must form the part of any prudent marketing strategy.