Whether starting a new business or growing an existing one, market research proves helpful. SWOT analysis is a crucial and structured planning method of business research. Every business has to be aware of the possible issues affecting their products or services in order to grow and sustain in today’s competitive world. A SWOT analysis does exactly that. SWOT is an acronym that stands for the analysis of strength, weakness, opportunity and threat to a business, company or organization.
SWOT Analysis Provides Great Assistance in Market research
Both small and large businesses require a successful marketing strategy to flow their long-term business plans. SWOT analysis provides guidance about the basic strengths and weaknesses from within along with external factors like opportunities and major threats. This analysis does not provide definite solutions but helps to draw a precise business research report and marketing strategy in the end. Management gets immense help in terms of leveraging the strength, weakness and competitors to their business. They also get clear idea about the areas where they have opportunities to flourish their business.
All these things make SWOT a foundational element for market research and marketing plan. Matching and converting is a popular way of utilizing this analysis technique. While the technique of matching draws competitive advantages, converting applies conversion strategies to transform the threats into opportunities and weaknesses into strengths. SWOT is ideal to find new markets and greater opportunities. It also keeps a tab on the overall position of a business with minimal threats and weaknesses. You can perform SWOT analysis on your own or hire a professional market research company. Following are the lists of common strengths, weaknesses; opportunities are threats to a business.
List of Strengths:
- Reputation and innovation
- Successful marketing strategies
- Good customer relationship
- Excellent location for business
- Strong knowledge about existing market
- Highly popular products
- Top class sales staff
- Excellent internal communication
List of Weaknesses:
- Struggle with meeting deadlines
- High prices and rental costs
- Poor record keeping
- Stocks larger than required
- Out of date market research reports
- Problems with cash fluidity
List of opportunities:
- Loyal customers
- Customer demand
- Unreliable similar products on the market
- Seasonal customer demand
List of Threats:
- Competitors with similar products
- Competitors opening an outlet nearby
- Competitors have change in marketing strategy
- Sudden change in spending habits of customers due to economic crisis
SWOT analysis provides detailed guidance about internal and external factors of a business. Strengths and weaknesses of a business are the internal factors while opportunities and threats are the external factors that affect a business. Both qualitative and quantitative business research techniques utilize SWOT analysis to prepare better reports.
MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world.
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