Doing a SWOT analysis is part of your market research and gives direction to your marketing strategy for the coming period. It is a summary of your internal and external analysis. In a table you set off the internal strengths and weaknesses of your company against opportunities and threats from outside. When making the analysis, try to look at your own company as objectively as possible. What are you doing well? What can you improve? And how do you deal with external factors that may threaten success?
1. Internal analysis
Start by naming the strengths and weaknesses of your company. For strengths, check what you do better than your competitor. And for weaknesses, find out where your competitor is more successful. Look objectively at past results, your personnel, your product or service, your customers, your finances and your marketing department. Have several people participate in the discussion and assess whether something is a strength or a weakness.
Example: Jennie's Bookstore
Let's take Jennie's Bookstore as an example. This bookshop has been on the outskirts of the city since 1986.
Strengths: an extensive range, customer-friendly staff and a reading table with coffee and tea (and biscuits!) that attracts additional customers.
Weaknesses: the children's book department is too small, a shortage of staff and the fact that your most experienced staff member is about to retire.
2. External analysis
Next, determine which environmental factors are opportunities (opportunities) or threats (threats) for your company. These are external factors, which means that they would also exist if your company did not exist. Take a good look at the developments in your industry, your customers and your competition. But also political and legal developments that affect your market. KVK offers various tools, such as the export or location scan that can help you with this.
Back to Jennie's Bookstore
How does Jennie's Bookstore stack up in the opportunities and threats department?
Opportunities: there is a new housing development just around the corner that may bring more young families to the store. And there will be a school in the area you can sell study books to.
Threats: the online store that sells below your price and delivers to your home, and a competitor in a nearby shopping centre.