Course: SLF 130 Marketing Practices for the Small Business

Unit 4 Reading

SubTabs

- Unit 4
- Table of Contents (Selected)
- Unit 4 Glossary (Selected)

SWOT Analysis and Environmental Scans Page_4

SWOT
STRENGTHS  ♦ WEAKNESSES ♦ OPPORTUNITIES ♦ THREATS

A SWOT analysis is relatively easy to understand analysis that examines the strengths and weaknesses of a company (the internal environment) as well as the opportunities and threats within the wide marketplace outside of the company (the external environment).

A SWOT analysis looks at both current and future situations.  A business analyzes their current strengths and weaknesses while looking for future opportunities and threats. The goal is to build on strengths as much as possible while reducing weaknesses. This type of analysis helps a company develop a plan that keeps it prepared for a number of potential scenarios.

The best organizations are able to respond quickly to environmental changes and capitalize on them. Whether deftly handling a social media crisis, taking advantage of an unexpected opportunity in current events (remember the bed bug scare!), or simply learning something new about their customers or the market, successful marketers will be those who recognize the changes that are occurring and make effective adjustments.

Regardless of the response to the external environment, marketers should be driven by continued devotion to their competitive advantage and what they can best offer to their customers. Just because a new competitor offers a new feature or benefit, a small business does not have to copy or compete in the same way. The business must focus on what it is doing best, and can continue to do best in terms of meeting customer needs.

SWOT analysis of a family-owned pet food and pet equipment store:

Strengths

- Great location on a high traffic route.
- Reputation for a wide variety of products.
- Well trained staff.
- Good relationships among manager and sales staff, all of whom are pet-owners.

Weaknesses

- High rental cost for location.
- High inventory levels of some food lines not selling.
- No one skilled in keeping the books as accurately as required.

Opportunities

- Loyal customers who might buy additional accessory products if offered.
- Customers prefer to buy “in-person”, but often ask for items they have seen online that are not carried.

Threats

- Big box chain opened in bigger city within driving distance.
- Grocery stores adding pet food and pet equipment lines in their stores.

STOP AND REVIEW

Successful companies constantly gather feedback from customers. They analyze this feedback to determine if they are meeting the needs of their customers, and what they can do better. They then combine their findings with data about consumer trends.

A SWOT analysis examines the strengths and weaknesses of a company (the internal environment) as well as Opportunities and Threats (the external environment). This type of analysis helps a company develop a plan that keeps it prepared for a number of potential scenarios.
DON'T FORGET THE CUSTOMERS
Successful companies constantly gather feedback from customers. Their opinions and reactions matter! Companies analyze this feedback to determine if they are meeting the needs of their customers and what they can do better. They then combine their findings with data about consumer trends. Based on the results of the feedback and trend analysis, the company may decide to make product improvements. Thus, the company has changed its product (one component of the marketing mix) in reaction to environmental changes.