SWOT analysis is a tool for auditing an organization and its environment. SWOT analysis is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal SWOT factors. Opportunities and threats are external SWOT factors. A strength is a positive internal factor. A weakness is a negative internal factor. An opportunity is a positive external factor. A threat is a negative external factor. Here is your FREE SWOT template for you to have a go – after you’ve read our SWOT analysis lesson of course!. We should aim to turn our weaknesses into strengths, and our threats into opportunities. Then finally, SWOT will give managers options to match internal strengths with external opportunities. SWOT is that simple. The outcome should be an increase in ‘value’ for customers – which hopefully will improve our competitive advantage. The main purpose of SWOT analysis has to be to add value to our products and services so that we can recruit new customers, retain loyal customers, and extend products and services to customer segments over the long-term. If undertaken successfully, we can then increase our Return On Investment (ROI In SWOT, strengths and weaknesses are internal factors.
A SWOT strength could be:
* Your specialist marketing expertise.
* A new, innovative product or service.
* Location of your business.
* Quality processes and procedures.
* Any other aspect of your business that adds value to your product or service. A SWOT weakness could be:
* Lack of marketing expertise.
* Undifferentiated products or services (i.e. in relation to your competitors). * Location of your business.
* Poor quality goods or services.
* Damaged reputation.
In SWOT, opportunities and threats are external factors.
A SWOT opportunity could be:
* A developing market such as the Internet.