Also known as FOFA, SWOT analysis is a very important technique for your company’s strategic planning and, of course, for Digital Marketing! Basically, it allows a complete evaluation of the business, both internally and externally.
In the competitive business world, this analysis is indispensable: knowing your strengths and opportunities allows you to invest in the right areas, while understanding your weaknesses and threats helps you avoid unnecessary risks.
What is a SWOT analysis?
In practice, SWOT analysis is a technique that helps map the strengths, weaknesses, opportunities and threats of the environment in which your company operates.
SWOT is an acronym in English that represents Strengths, Weaknesses, Opportunities and Threats. So, in Portuguese, the acronym is FOFA.
See each of the elements in detail:
- Strengths: These are the things your company does best! It could be a great team, a recognized brand or an innovative product that makes customers’ eyes shine;
- Weaknesses: These are the areas where your company doesn’t shine as brightly as it could. From complicated logistics to a team that needs more training or a product that receives a lot of complaints;
- Opportunities: These represent the paths your company must follow to grow . This could be entering a new market, a good partnership or even a market trend to take advantage of;
- Threats: These are obstacles that could hinder your progress. For example, the price charged by competitors, changes in legislation or an unexpected economic crisis.
When doing a SWOT analysis, we divide these four elements into a matrix. On one side, we have the strengths and weaknesses. On the other, the opportunities and threats.
The great thing about SWOT analysis is not only identifying these elements, but transforming them into concrete actions for your business!
In other words, you identify a strength and amplify it. When you find a weakness, you work to strengthen it. When you spot an opportunity, you go after it with everything you’ve got. And of course, when you spot a threat, you prepare to face it!
The 4 elements of the SWOT matrix
Now, let’s use a little of our imagination to analyze each of the elements of the SWOT matrix in practice:
Suppose you are a Marketing leader at a small technology company that develops innovative task management software.
It’s time to plan for the quarter, and considering there have been significant changes to the company’s goals, this is a good time to do a new SWOT analysis.
Shall we follow the example?
Strengths
The technology company has a highly qualified team and offers innovative software on the market.
In this scenario, its strengths lie in the technical competence of its employees, the quality of its product and the excellent reputation it has built with customers — even if there are not many, due to the fact that it is a small organization.
These forces give the company a competitive advantage over its competitors, making it stand out in the market.
Weaknesses
But as not everything is perfect, it is clear that the company has weaknesses!
The main one is the lack of working capital to invest in new technologies and expand its product line.
Additionally, it has a lean organizational structure, which may limit its ability to absorb new customer arrivals.
Identifying and addressing these weaknesses is a fundamental step for the company to continue its development.
Opportunities
Continuing with the example, the technology company sees several opportunities in its niche.
With the high demand for technological solutions, especially from companies that are experiencing digital transformation, it has the chance to expand into new markets and customer segments, of different sizes.
Furthermore, forming strategic partnerships with universities can open doors for collaborations and joint product development at a lower cost.
These opportunities are promising paths for the organization’s growth and expansion!
Threats
However, there are also threats that the organization needs to face.
Competition in the technology sector is fierce, with new companies entering the market every day.
Additionally, there are rapid changes in technological trends and legislation that may pose challenges for it.
Therefore, it is necessary to pay attention to these threats in order to act quickly and adapt to changes in the external environment as soon as possible.
How to do a good SWOT analysis
At the beginning of the example, I talked about quarterly planning. This is, honestly, the frequency at which I think the SWOT analysis should be redone.
After all, when we think about the business world, whoever adapts first wins!
If your strength ends up becoming a weakness due to market movements, with a SWOT analysis carried out every three months, you can quickly overcome this.
“Ah, Guilherme! Quarterly is not enough.” Okay, then at least once a year, okay?
This is because carrying out a SWOT analysis regularly brings numerous benefits: it helps keep the company aligned with market trends, allows a quick response to changes and strengthens strategic planning.
By reviewing and adjusting frequently, you ensure you’re always one step ahead, ready to adapt and grow!
So, how about starting your SWOT analysis today?
With honesty, objectivity and a close eye on the internal and external environment, you will put yourself on the right path to making strategic and effective decisions.
And here are some more recommendations from me to guide you on this journey:
- Just start: even though the first analyses may be more flawed, this is part of the learning process and the most important thing is to include it in the company’s routine to improve over time;
- Identify internal and external elements: look inside your company and the environment around you, identifying the skills and resources you have, and what changes may affect your business;
- Be honest: acknowledge both strengths and weaknesses, without filters, encouraging conflict of ideas so that everyone involved in the analysis can express their own views;
- Diversify sources of information: conduct research with both customers and your team of employees, who have a comprehensive view of the whole. In some cases, the anonymity of these interviews makes it much easier to gather more accurate information;
- More data, less guesswork: consider the market scenario, trends and customer expectations, guiding yourself with data as well, as this will help you understand the context more reliably;
- Plan strategies based on the information: Use the information from the SWOT analysis to guide the creation of strategies and action plans, always monitoring the data.
What does SWOT analysis have to do with Marketing?
The quick answer is short and sweet: everything!
The most time-consuming part is that, obviously, you will only be able to develop effective marketing strategies if you deeply understand the internal and external environment of your business. And a SWOT analysis can be a good first step!
For example, in a communication plan, I certainly won’t emphasize my weaknesses! I’ll focus on my strengths and “attack” my competitors’ weaknesses.
With the help of SWOT, it is possible to plan the tactics that will be used in what you want to invest in and what you want to avoid.
See how the results of this analysis are integrated into Marketing strategies:
- Leverage your strengths: Identify the areas where your company excels and use this information to create persuasive marketing messages. Focus on your strengths to capture customers’ attention and differentiate your brand in the marketplace ;
- Mitigate weaknesses: Recognize areas where your company may be lacking and work to improve them. In Marketing, this may require creating content that clarifies key questions, sending suggestions to sales and Customer Success teams, etc.;
- Explore opportunities: map out market demands that can benefit your company. This serves to create marketing campaigns that highlight these opportunities and reach new target audiences;
- Monitor threats: Be aware of external threats that could negatively impact your company. To do this, constantly improve your marketing strategies and protect your brand against potential crises.
SWOT analysis, when used correctly, allows for much more effective marketing planning — helping you understand where your company is now, where it can go, and how to get there!
Let’s analyze your business?
You have seen how SWOT analysis is an extremely important technique for business management. Speaking of Marketing, this applies even more practically!
By identifying strengths, weaknesses, opportunities and threats, your strategies are better targeted and your investment obtains a more satisfactory return.
And if you want to get accurate information about your business to keep growing, count on Enjoy Minder! Just request our free Digital Marketing diagnosis right now!
