When putting goals together for our business, it’s important to understand any internal and external factors that may impact our ability to deliver against those goals, or that affect our business directly or indirectly. Knowing these Strengths, Weaknesses, Opportunities, and Threats is critical to ensure our goals are achievable and relevant – and that’s where a SWOT analysis comes into play.
This analytical tool is a robust mechanism for gaining comprehensive insights into our business landscape. Some of these factors we will be able to identify now, and some we may not know until we get to later steps in the Strategic Marketing Plan – and that’s okay. SWOT analysis should be revisited often as the environment we operate in is often changing. It’s always a good idea to get a pulse check on what those changes are, and how they benefit or encumber our efforts.
Internal Factors
Internal factors affecting our business are things we can often control or own directly. These are our strengths and weaknesses. Knowing where we play well, and how we stack up to the competition, is important in knowing where to prioritize and focus our resources. It also helps to know where we are lacking and may need outside expertise to be more competitive in the marketplace. These internal factors are our:
- Strengths:
- Begin by identifying the internal factors that set our business and products or services apart. What distinctive skills, assets, or resources does our business have? Whether it’s a unique product offering, a robust team, or cutting-edge technology, recognizing our strengths forms the bedrock of strategic planning.
- Weaknesses:
- No business is flawless. It’s important to acknowledge areas that may need improvement, such as operational inefficiencies, skill gaps, or outdated technology. Candidly assessing weaknesses allows us to proactively address challenges and enhance overall business resilience.
External Factors
Often outside of our control and influence, external factors also play a starring role in shaping our goals and our business. These are often opportunities or threats – things that can help or hinder our efforts. Identifying these external factors can help us prepare for things that are coming and start investing in the people, skills, and technology that will keep us competitive.
- Opportunities:
- Explore external factors that can propel our business forward. These could include emerging market trends, technological advancements, or untapped customer segments. Identifying opportunities helps us foster growth and innovation by aligning our business strategies with the evolving environment around us.
- Threats:
- Anticipate external challenges that could hinder our success. Market fluctuations, competitive pressures, or regulatory changes are common threats. By acknowledging these risks, we can develop contingency plans and fortify our business against potential pitfalls.
Conducting a SWOT analysis is a dynamic process, providing a snapshot of our company’s current state and a foundation for strategic decision-making as we plan for what is ahead. By regularly revisiting our SWOT analysis, we ensure it continues to reflect our changing business environment to help navigate market intricacies, capitalize on opportunities, and fortify against potential challenges.
Download our free SWOT Analysis Template below.
