Tips in Writing SWOT Analysis Papers
Marketers are aware of the many marketing beliefs in the analysis of business environment. Business situation and environment can either be predictable or unpredictable, changing rapidly or stable in some industries. These situations are brought about by different environmental factors that organizations may or may not have control of. Purchasing power of consumers, consumer behavior and preferences are some of these factors.
For a company to survive, it should have its competitive advantage. Careful and rational analysis of its industry and competitors is needed. A marketer’s in depth knowledge of the firm and its rival will spell out the difference between surviving and failing. The company itself should be able to utilize its resources and strengths to overcome whatever weakness it has. It should be able to tap whatever opportunities situation and environment offer.
SWOT Analysis is a powerful tool for business strategy formulation, industry and competitor’s analysis and for relevant decision making. SWOT is an acronym for strength, weakness, opportunities and threats. It is a logical and analytical process of assessing the strengths or weaknesses of the company’s business portfolio in its internal and external environments. The internal environment refers to the company itself; example is its policies, values, mission and vision, its products or services and even its strategies. This consists of factors that can be controlled by the firm and these may be viewed either strengths or weaknesses. The external environment refers to factors outside the company; it consists of events, situations or development which the company has little or no control at all. These can be situations or events like calamities, government regulations, technological factors, changing market characteristics but no matter how unfavorable it may see, it may be perceived as opportunities or threats depending on the strategies implemented.
Strength is a power of an organization or the advantage it has over its competitors. These are the advantages which the company should effectively utilize for their benefit. On the other hand, its weaknesses are its shortcomings or its defects relative to competitors. These two factors belong to the internal environment of the organization. Opportunities are favorable situations that a company can use to its advantage while threats are the situations that may limit the effectiveness of its performance.
To use SWOT analysis as a tool to formulate strategies so as to gain competitive advantage, a marketer should have data of an in depth analysis of the different factors present in both the internal and external environment to be able to tap whatever opportunities that may be present. An example of opportunity for the firm is the increasing numbers of families with growing incomes. Proper marketing campaign is needed to penetrate this untapped market. Strength of an organization should be utilized and developed further to guard against its weaknesses. An example of strength that a company may have is its management – labor relationship. This must be maintained to be able to have a good working environment for the employees focusing on individual’s efficiency. Shortcomings of the company should be given attention, like for instance, it has a weak communication system among its departments, then policy implementation geared towards good communication should be implemented. For threat that is somehow unpredictable, risk management policy is needed.
In this fast changing business environment the need for a strategic tool is a weapon that an organization should utilize to have leverage, competitive advantage over that of the competition.
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