SWOT-analysis - is the most affordable marketing tool

To win the competition, the athlete need to know their strengths and weaknesses (use a strong, strengthen weak), as well as their rivals.Business - the same competition, only the prize - a profit and winning the competition.SWOT-analysis - is:

  1. Strengths (strengths).
  2. Weaknesses (weak points).
  3. Opportunities (opportunities).
  4. Treats (threats).

object of analysis for strengths and weaknesses (S and W) side are the internal factors, opportunities and threats (O and T) - external, not influenced object.

The internal factors include:

  • staff;
  • pricing;
  • marketing;
  • management;
  • finances.

Outside, in turn - is:

  • State (laws, taxes);
  • social environment;
  • competitors;
  • natural factors and others.

Analyze, using marketing tools

At first glance, the SWOT-analysis method is much simpler than other ways to assess economic activity.It is easy to group all the 4 factors, and, starting from them, to make administrative findings.But if you do not focus on a specific product or a specific market segment specialization, you can get a list of general recommendations.

should be noted that it is desirable to assess the strengths in terms of customers.Since the staff can not be objective in this matter.Therefore, SWOT-analysis - it is also an opportunity to look at the activities of the company through the eyes of the consumer.There is important work feedback.To examine the attitude of consumers to the company, it is necessary to conduct market research.Based on the results of the analysis are built his strengths and weaknesses.

is usually a matrix of four parts, which are the usual name «SWOT-analysis."Weak points are ranked in order of importance, similarly strong and so on.Then, each object is checked at the impact of an object from a different part of the matrix.For example, highly qualified staff - forte.This is for any company in the degree of importance of one of the first priorities.Whether this figure is subject to the influence of the competition?Yes, often luring footage.Consequently, one of the findings will apply to minimize this threat.

And in practice?

Another example: the company is highly competitive pricing due to tax benefits and the use of cheaper raw materials.It is an advantage to which may affect both the state competitors.Therefore, in the long term it does not exclude the possibility of extinction or weakening of the stronger party.Conclusion: The need at the moment to take advantage of the maximum, to then diversify activities or go into the category of expensive, but prestigious products.

Thus, SWOT-analysis - is the ability to inexpensively determine its position on the market at the moment, to develop recommendations for the short term.Any marketer necessarily need to know the basics.Since, in practice, such a matrix is ​​often used in evaluating the strengths and capabilities of the firm.

may be that not all the recommendations are feasible, as SWOT-analysis - it is only a tool.From the list of successful strategies to choose, arithmetical methods do not do this.Clear guidelines for choosing not, remember the definition of business: maintenance of economic activity at your own risk.