To evaluate how the business is streaming inside the marketing space, A SWOT analysis considered as a working model to identify strength, weakness, opportunities and threats. The analysis carried out based on the information gathered from the journals, articles, literature review, and annual reported databases. In this sense, SWOT analysis use for strategic planning development provides information for sizing up the opportunities or the weakness, an organization facing inside a competitive edge.
The degree to which external and environmental factors affecting the business growth is discussed under Strategic fit. This intended to build successful marketing strategies since the 1960s. A strong SWOT analysis provides significant insights about business success and when it is aligned with consumer demand, a blueprint created that depicts brand value. In this article, readers will come to know what are the benefits and limitation of SWOT analysis whose contribution is somewhere responsible for creating a brand image.
Analytical Factors –
The core purpose behind conducting a SWOT analysis is to identify external and internal factors seen as an important element to achieve the objectives. Strength and weakness are internal factors related to the product quality whereas opportunities and weakness are subjective to the competition. The potential threats belong to how much competitor is doing for increasing the brand value (Gardiner, 2019). Additionally what is the consumer perception regarding brand often lower or heighten the product demand. To cope up with the changing business environment, it is important to figure out these internal or external factors to enhance the opportunities through eradication of threats.
Today most of the organization conducts SWOT analysis before implementing new strategies. This helps them to surpass the competitor by focusing on their own strength. As Amanda Lang said- A SWOT analysis involves, what are our strength and weaknesses? What are our opportunities and what are the threats? That is why business having a strong grasp on the strength and weaknesses found to be more objective. According to online assignment help experts,to highlight the potential challenges, Michael Porter created a framework to identify the competitive forces needed for SWOT analysis. Porter model investigates the threat for the product services, bargaining power of supplier and buyers, new entrants, threats of the rivalry among the existing competitors.
How To Do SWOT Analysis-
The objective of a SWOT analysis is to using the interdisciplinary skill, ideas about external and internal environment to align the strategies. This carried out by external and internal analysis for examine core competencies, resources, market opportunities, and competitive advantages inherent to the organization. Different mode and resources used to evaluate SWOT elements.
Source- LEGO SWOT statistics created with CayenneApps SWOT, 2016
As per LEGO SWOT statistics, strength has great influence on the opportunities by 84%. But with rising competition, weaknesses can limit the uses of opportunities by 39%. This often intensifies the limit of threats by 41%. In a nutshell, the balanced business portfolio sustains the business operation in the long term and become effective in increasing productivity. Let’s dive into deep to understand how an organization should proceed SWOT Analysis-
1.Analysis of Internal Strength and Weaknesses
Many organizations analyze their strength and weakness to remain in the competition. Tangible and Intangible resources, for example, raw material premises, equipment, financing technology, human capitals, firm network customer base and brand equity is associated with the internal resources.
The critical analysis of the internal strength and weaknesses pinpoints the resources need to be sustained and developed that responsible for creating core competencies (Sammut. B et al, 2015). Critical analysis of the financial resource, managerial, infrastructural, distribution, marketing resources, and innovation resources should be accountable prior to SWOT analysis.
2. Analysis of Potential threats and External opportunities
The purpose of analysis of external opportunities and challenges help the organization to recognize the major developments and implications. Here one should analyze the commercial opportunities and competitive environment first which is a large concern for identifying the rivalry firm. According to an essay writer, the objective of analyzing potential threats is used to eradicate the direct impact of the organization stream and exploit positivity.
Benefits Of SWOT Analysis
The main advantage of SWOT analysis can be done by anyone who is a good knower and ably addresses the complex situation (Queensland Government (2019). Some of its benefits are listed below-
- Expose the weaknesses and evolving business culture.
- Capitalizes the opportunities and help in formulating strategies accordingly.
- Identifies the source of competitive advantages.
- Helps in deterring threats.
- Popular tools for analyzing external and internal resources.
- Improves business without expenses.
Limitations of SWOT Analysis
Despite their long term benefit, SWOT Analysis is termed as snapshot tool. As business culture is dynamic, SWOT can’t be used for predicting the success of an organization (Abbasov. N, 2019). Given below points highlights some of its limitations-
- Factors can be both strength and weaknesses; it depends on how a person classifies the factor.
- It is not comprehensive for other factors like PESTLE, DIAMOND etc.
- Weakness can be eliminated if the results are based on the research.
- SWOT is static approaches hence, loses its effectiveness gradually.
- This doesn’t provide an alternative solution or generate too much information.
Conclusion-
A SWOT analysis considered as a working model to identify strength, weakness, opportunities and threats. The analysis carried out based on the information. The core purpose behind conducting a SWOT analysis is to identify external and internal factors seen as an important element to achieve the objectives. This helps them to surpass the competitor by focusing on their own strength. The purpose of analyzing external opportunities and challenges help the organization to recognize the major developments and implications. It also capitalizes the opportunities and helps in formulating strategies accordingly. In most of the cases, SWOT identifies the source of competitive advantages. Despite its enormous benefits, it has some major limitation. As SWOT is a static approach, it will lose its effectiveness gradually. This also doesn’t provide an alternative solution for a particular threat.
Refrences
Gardiner, Deborah. (2019). SWOT analysis resource – why conduct a SWOT, template, benefits and limitations. Retrieved from-https://www.researchgate.net/publication/332496339_SWOT_analysis_resource_-_why_conduct_a_SWOT_template_benefits_and_limitations
Miles, E. W. (2019). SWOT Analysis of Four Espoused Business School Goals. In The Purpose of the Business School (pp. 117-134). Palgrave Pivot, Cham.
Namiq Abbasov ( 2019). What are the limitations of SWOT analysis(es), Retrived From-
https://www.researchgate.net/post/What_are_the_limitations_of_SWOT_analysises
Queensland Government (2019). Benefits and limitations of SWOT analysis, Retrived from-
Sammut-Bonnici, Tanya & Galea, David. (2015). SWOT Analysis. 10.1002/9781118785317.weom120103.