SWOT: Hardly any other shortcut is used as much by marketing managers as this one. Why do you need a SWOT analysis and what for heaven’s sake is actually hidden behind these four letters? If you don’t know it, don’t worry: You won’t have to remember it and we will explain it to you.
Let’s start with the following statement: While the SWOT analysis is one of the most widely used instruments of marketing managers, in principle, it still does not enjoy the importance that it actually deserves.
What is a SWOT analysis?
The SWOT analysis is basically a method for the strategic planning of a project, a company, a new business or, if one wants so, also for the self-evaluation.
The SWOT analysis is an acronym for the four following elements:
Some credit its creation sometime in the 1960s and 1970s to the management consultant Albert Humphrey, graduate of the elite university of Harvard.
His objective was to provide companies (or individuals) with a matrix to help them make strategic decisions.
How to conduct a SWOT analysis?
SWOT analyses are now mostly standardized, which means that you have to work off some clearly defined steps.The first step is to find and set the objectives. The second step is to define the four above-mentioned points of the analysis, while the third and last step is to work out the measures for achieving the objectives by combining the single elements among themselves.
What sounds simple is quite complex. In any case, it is crucial to have a detailed knowledge of the company and an equally detailed knowledge of the goals to be achieved.
As outsiders, we have the great benefit of objectivity. We are not business-minded, we have no prejudices, we do not know any in-house alliances or antipathies. This allows us to see the true picture of the company of our customers – and to open this view to them.
Do you know what SWOT stands for? No matter, because you know the benefits of the analysis now and know: you need one!