Why Should You Use SWOT Analysis?

For companies looking to execute campaigns, projects or even to come up with a product or service. Doing a communication, campaign or even an investment plan can come in handy and SWOT analysis can come in handy as well. Here you can simply determine the damaging threats and potential opportunities to improve a plan, the company and the overall execution as well. SWOT analysis stands for Strength, Weakness, Opportunities and Threats.

SWOT Analysis
A definition of SWOT analysis

Strength – In analyzing factors, it is recommended to look for specifics and detailed information. For strengths, the factors that you should consider looking at are the positive results, attributes and advantages that are perceptible. Keep in mind that the stuff that should be considered as strengths are taken from the factors of the company, the plan itself and the execution. Each component must have an optimistic value and can contribute to the execution as a positive value.

Weakness – In weakness, one must know the factors that can affect the plan in a negative way but either way can be still kept in to a control. Considerable weaknesses are the factors barely from the company such as internal performances of the employees, the natural problems and the company’s reputation, nature and other factors under it that can be called a negative feature and thus contributing to a weakness.

Opportunities – Opportunistic chances are the ones that should be the main focus here. Factors that can contribute to a decisive opportunity are the ones that should be listed as an opportunity: it only brings good and the solely for the good purpose alone. More factors that can account under opportunities are market growth, timeliness, demographics, tradition and lifestyle. If all can be a step up for a company; it is an opportunity.

Read also: 10 Crucial points when evaluating an investment opportunity.

Threats – Opposite from the above-mentioned, threats are the uncontrollable external factors that can affect the plan and nuzzle the main goal. Hence further, these are the factors that should be avoided in order to pursue an effective and plausible plan.

Putting everything into an example: Let this plan set as an example – a company is looking to release a fun run and proceeds would be sent to charities and half of it will be for the company’s PR and financial stability. How can you analyze this using swot analysis?

Strengths can be that that company has a good reputation so gathering people for it wouldn’t be much of a problem. Second is the fact that it is a charity event, touching the hearts of the people might motivate participation and thus increasing audience for the event.

Same factor can be a weakness as well. If a number of people sign up for it or let’s say the target audience is only half of the publics a company owns. If all are expected to come and the company can only accommodate half of it, the other fifty could resort to cutting ties with the company, might receive negative backlash and other possible outcomes that can affect the company in the negative way. This weakness can also be considered as a lack of organizational skills for external relations.

An opportunity for this is that the company can boosts it publicity during and after the event. If it turns out to be a blast then that alone is a big opportunity for an amazing PR boost. Again, if the event is successful then the company might get proceeds exceeding from what’s expected and that can be a financial opportunity as well.

Lastly is the threats, if all fails it can be a struggle for the company overall. Threats that can count are what if there is other companies doing the same thing and that can play a role on the audience participation. What if that company is better at these events? – Things that can come to a person’s mind.

 

 

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