Saturday, July 9, 2011

S.W.O.T Analysis 101

Hello everyone, today we are going to see one of the most basic management and marketing tool - the SWOT Analysis. Keep in mind that this is only some basic info and that i will publish more detailed info later in the year.

SWOT analysis represents a marketing and strategic tool which is used to examine strenghts and weaknesses of the company in a relation to its chances and risks on the market. It consists of 4 elements: STRENGTH, WEAKNESS, OPPORTUNATY and THREAT. When first letters from these words are combined, we get its name - SWOT.

STRENGTH - this element gives us answer to a question: "what does make our company so successful on a specific market?" Also, some other questions are asked, such as:
- What advantages do we have over our competitors?
- Why our buyers value our company?
- What makes us unique?
- Do we have an original corporate image? and other questions regarding our STRENGHTS as a company.

WEAKNESS - here we need to face the ugly truth about waknesses of our company. Also, some questions must be answered.
- What are we doing wrong and how can we improve it?
- In what business aspects are our competitors better than us?
- What are the drawbacks of our business?
- Do we lack in certain marketing activities? and other questions regarding our WEAKNESSES.

OPPORTUNITY - this element represents opportunaties for growth on a specific market. Some questions are crucial.
- Did we fully cover our primary market and if not, what part we didnt?
- Can we expect some new laws and policies that we can use in our advantage?
- Are there any opportunaties for vertical integration of our company? and other question regarding OPPORTUNAIES on a specific market.


THREAT - this element will point out threats that our company is subjected to on a cpecific market. Here also, we need to take a look at some questions.
- Can we expect new competitors and substitutes in our market?
- Did the laws changed affecting us negatively?
- Is suppliers negotiating power rising?
- Can we expect new economic crisis? and other questions regarding THREATS that our company is subjected to.

When making SWOT analysis it is crucial to be realistic!

Thats it for now, more detailed info about SWOT will come later.
Cheers!

17 comments:

blorriepoes said...

were did u see the camaro?

The Onion Gypsy said...

very helpful info! great post! +followed

Zach said...

Some quality info, thanks

ebm93 said...

It's a useful tool. While primary business-oriented, bear in mind you can do one of this for anything in your personal life.

DEZMOND said...

pozdrav od fellow bloggera iz istih krajeva :)
PS u ABOUT ME delu promeni ECONOMY AND MANAGEMENT u ECONOMICS AND MANAGEMENT posto se na engleskom ne kaze ECONOMY ;)

Wolle said...

Thanks for sharing this method.

Jay said...

a useful tool for any endeavor. :)

Magixx said...

great stuff

blorriepoes said...

good analysis, and useful results.
thanks for sharing!

Vague Raconteur said...

Very interesting... Trying to help a cousin start up a business, this'll come in handy!

ApocTV said...

Great post, followed!

Daan said...

Thats a nice way of analizing.

Vague Raconteur said...

one small thing... *OPPORTUNITY lol

KrowOne said...

Helpful info! I'm taking a marketing for dental practitioners paper, so maybe your blog might be able to help me out!

b said...

GREEEEEEEEAT Article! total helpful info.

FinBis said...

Had this last semester, its pretty interesting how simple it can be to analyse these things!

Supernova said...

I just learned about this in my economics class last semester! It's very useful for any business, big or small.

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