How to Use SWOT Analysis to Build Market Research Plan

How to Use SWOT Analysis to Build Market Research Plan


What Is a SWOT Analysis?

A SWOT analysis is a structured planning method that identifies the strengths, weaknesses, opportunity, and threats of an organisation. The main point of performing a SWOT analysis is to help the business develop a strong strategic plan by making sure the business covers both internal (the strengths and weaknesses) as well as external (the potential opportunities and threats)

How and When to Use Swot Analysis Effectively?

The SWOT analysis comes in many ways, but the important thing is to list down the strengths, weaknesses, opportunities and threats of an organisation in the most identifiable manner. Use the SWOT analysis to find the areas that need to be improved and retain.

Importance of SWOT Analysis in Your Marketing Plan

  • Identifies the strength of a business. Using the strength category of the SWOT analysis, it will define the expertise of the business that is held over the competition.
  • Make rooms for improvements. The marketers know what areas they must focus on to improve the marketing plan of the business.
  • Creates an opportunity for profit growth. The SWOT analysis can be used to maximize the profit of the company by identifying the strength and weaknesses.
  • Identifies external challenges. With the SWOT analysis, the business will anticipate the challenges that the business may face in the future that can affect the marketing plan of the business.

Benefits and Limitations of SWOT Analysis

Benefits

The main benefit of having a SWOT analysis is that it has fewer costs and you can address the complex situation if you do not have much time. This means that you can assess your own business without having to consult a business advisor and spending too much.

Limitations

However, the SWOT analysis only a stage of the business planning  process, if you want to address more complex issues and make crucial decisions, then more in-depth research and analysis is required. Another limitation of SWOT analysis is that it does not prioritize issues and does not provide solutions.

SWOT Analysis Summary

Strengths

The strength describes the positive attributes of an organization, either tangible and intangible and the what specific things the organization excels and separate from other competitors. The strong brand, loyal customer base, strong balance sheets are examples of the strengths of an organization. The strengths are within your control.

Weaknesses

The weaknesses are what is considered to be the limitations of an organization that prevents them from performing at their optimum level. These are the x`that decreases the value of product or service you offer or aspects that place your business at a competitive disadvantage. You need to enhance these areas to keep up with the pace of the competitive business world.

Opportunity

The opportunity refers to the internal positive factors that provide your business the best chance to prosper and grow. These factors are also the reasons that can put your business into a competitive advantage.

Threats

The threats are the negative external factors beyond your control that has a potential to harm your business or put the strategic plan, or the business itself, at risk. Your business can not control these factors as these are caused by natural phenomenon. Having a contingency plan is one of the ways to manage the threats.