SWOT-analysis is the most affordable marketing tool

To win in the competition, the athlete needs to know his strengths and weaknesses (strong use, weak strengthen), as well as his rivals. Business is also a competition, only a prize is profit and victory in a competitive struggle. SWOT-analysis is:

1. Strengths (strengths).
2. Weaknesses (weaknesses).
3. Opportunities.
4. Treats (threats).

For an object of analysis, strong and weak (S and W) parties are internal factors, opportunities and threats (O and T) - external, unaffected object.

Internal factors include:

• staff;
• price policy;
• marketing;
• management;
• finance.

External, in turn, is:

• State (laws, taxes);
• The social environment;
• Competitors;
• Natural factors, etc.

We analyze using marketing tools

At first glance, the SWOT analysis technique is much simpler than other ways of assessing economic activity. It is easy to group all 4 factors and, based on them, make managerial conclusions. But if you do not focus on a particular product, market segment or a separate specialization, you can get a list of general recommendations.

It should be noted that it is desirable to evaluate the strengths from the point of view of the company's customers. Because staff can not be objective in this matter. Therefore SWOT-analysis is also an opportunity to look at the company's activities through the eyes of the consumer. The feedback work is important here. To study the attitude of consumers to the company, you need to conduct a marketing study. Based on it, the results of the analysis of strengths and weaknesses are constructed.

Usually a matrix of four parts is created, which have the customary name "SWOT-analysis". Weaknesses are ranked in terms of importance, strong similarly and so on. Then each object is checked for the influence of an object from another part of the matrix. For example, highly skilled personnel is a strong point. This is one of the first priorities for any company in terms of importance. Is this indicator affected by competitors? Yes, frames often entice. Therefore, one of the conclusions will concern minimization of this threat.

And how in practice?

Another example: the company conducts a highly competitive price policy due to tax incentives and the use of cheaper raw materials. This is an advantage that both the state and competitors can influence. Consequently, in the long term, the possibility of the disappearance or weakening of this strength is not excluded. Conclusion: you need at the moment to take advantage of the maximum, to then diversify activities or go to the category of expensive, but prestigious products.

Thus, SWOT-analysis is an opportunity to determine its position on the market at a given moment without any big expenses, to develop recommendations for the short term. Any marketer needs to know these basics. Since in practice this matrix is often used in evaluating the strengths and capabilities of the firm.

It may turn out that not all recommendations are feasible, because SWOT analysis is only a tool. From the list of obtained strategies, one must choose a successful one, arithmetical methods do not. There are no clear recommendations for choosing, remember the definition of entrepreneurship: conducting economic activity at your own peril and risk.