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To SWOT or not to SWOT?

Article Overview: If you're a marketer already then chances are you'll already know how valuable a SWOT Analysis can be. Even if you're not, you'll probably have come across them for business planning or just as one of those useful business tools.

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To SWOT or not to SWOT?

If you're a marketer already then chances are you'll already know how valuable a SWOT Analysis can be. Even if you're not, you'll probably have come across them for business planning or just as one of those useful business tools.

But why are they so useful?

Well, a SWOT lets you take a step back from your business and allows you to have a good look at your key Strengths and Weaknesses, which are internal factors, usually particular to your business.

Then you examine possible Opportunities and Threats which are outside of your business and sometimes out of your control, but knowing about them means that you can choose whether or not to react - the ball is in your court.

This is why they usually form part of your marketing plan or business plan. Without properly looking at these areas for your business, it's difficult to judge where you can make the difference and which direction to head in. What we love about them is that they're actually really easy! This is partly because they're a snapshot of what you know to be true about your business, which is usually already in your head. It's not often that you get the chance to analyse this data though, so the SWOT puts it into black and white. It then helps you to plan what to do next.

So, for example, Business A is a retailer with one shop who currently only sells from that shop. His SWOT might look something like this:

Strengths

• Local customer base

• Good shop location

• Low overheads

• High visibility

• Loyal customer base within local area

Weaknesses

• Rent is high

• Staff costs are increasing

• Market is only local as there is only one shop

Opportunities

• Open a second shop?

• Sell products over the Internet?

• Partner up with another retailer?

Threats

• Recession is forecast

• Interest rates still high

• Competition fierce

• Rent on premises likely to increase next year

Now it begins to make sense! That "internet" opportunity for example, stands out as a pro-active option for the business which probably warrants a bit of thought. The threat of a rent increase supports this decision, and so do the increasing overheads such as staff costs.

Of course it's not quite that simple, more research now needs to be done to decide on the best course of action (as with any planning), but this is where the SWOT becomes a guide for your plan. It will also continue to stand alone as a planning tool. Of course SWOTs change as your circumstances do, but what a quick, neat way to help you plan ahead!

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Article Tags: business planning, business tools, marketer, marketing strategy, swot analysis

About the Author: Karen McNulty
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Karen is a Chartered Marketer and has been a full member of the Chartered Institute of Marketing since 2001 (MCIM). She also has a Diploma in Marketing (DipM). She majored in marketing for her degree and has worked in marketing in one way or another ever since, practising her marketing in a wide range of companies, from Hewlett-Packard to a small internet cafe. Karen currently has her own marketing business, Marketing Picture, which provides marketing strategy, copywriting, PR and design for SMEs. She has further built up her knowledge of small businesses over the last 10 years, working with an Enterprise Agency as a business adviser and as a Marketing Manager for them. Karen is impassioned about all aspects of marketing and a great practitioner of what she preaches, currently also using her expertise to help small businesses via www.MarketingPlanWiz.co.uk

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