What Is SWOT Analysis?
A SWOT analysis is a strategic planning tool used to assess the state of a business and develop a sense of its immediate priorities. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT is often used as a starting point when marketing teams craft campaigns. It helps isolate an issue, guide thinking around solutions, and take effective action to improve results.
Why SWOT Analysis Helps
SWOT analysis clarifies an issue by documenting the important factors influencing it. It clarifies what actions are available and enables decision-makers to gauge relative risks and upsides, including the opportunity costs each course of action carries. Because it is a high-level tool, it has the potential to cut through “analysis paralysis” and zoom in on a handful of possible actions from a vast number of options.
How to Perform SWOT Analysis Correctly
In a SWOT analysis, the four categories of Strengths, Weaknesses, Opportunities, and Threats are listed in a four-quadrant matrix. Notes are placed within each quadrant to provide relevant information. SWOT is best used with a cross-functional brainstorming group representative of the stakeholders who can act on an issue.
In B2B marketing, SWOT is principally used to define a company’s differentiating factors in the market and what may prevent the company from “claiming” them. The areas are best understood as a mix of internal and external traits. You spotlight key facts by asking pertinent questions. Discussion on the way forward commences after all areas are filled out.
Internal Factors – Your Resources
Strengths
- What advantages do we have for pursuing our goal?
- What tools do we have that will help reach the goal?
- What other resources (personnel, etc.) are relevant?
Weaknesses
- What improvements could we make?
- What factors may distract from the goal?
- What resource constraints do we have?
Opportunities
- What tactics are competitors not using?
- What new trends are relevant to our brand?
- What would increase results and reduce work?
Threats
- What market conditions are against our goal?
- What are we doing that competitors also do?
- In what ways do competitors outperform us?
AIMG uses SWOT analysis as a core guidance tool to focus on thinking about your marketing. With time-tested industrial marketing strategy, we turn ideas into successful campaigns. Contact us to learn more.