Introduction to marketing
In this assignment I will discuss and analyse what SWOT analysis is and the advantages and disadvantages. I will also discuss and analyse what is its sell by date.
A SWOT analysis is a tool used to provide a general or detailed snapshot of a business strength, weakness, opportunities and threats. SWOT analysis is a tune-up that every business needs periodically to diagnose and fix what's a bit worn, what's on the verge of breaking down or what's already broken and needs replacement--so that it can keep the business running even better than it has in the past.
The importance of SWOT analysis lies in its ability to help clarify and summarise the key issues and opportunities facing a business. Value lies in considering the implications of the things identified and it can therefore play a key role in helping a business to set objectives and develop new strategies. The ideal outcome would be to maximise strengths and minimise weaknesses in order to take advantage of external opportunities and overcome the threats. For example, the environment may present an opportunity for a new product but if the company does not have the capacity to produce that product it may either decide to invest in new plant and machinery or to just steer clear.
The biggest advantages of SWOT analysis are that it is simple and only costs time to do. It can help generate new ideas as to how a company can use a particular strength to defend against threats in the market. If a company is aware of the potential threats then it can have responses and plans ready to counteract them when they happen.
There are also disadvantages of SWOT analysis. A typical SWOT analysis is a usually a simple list and not critically presented. If a company is thinking about compiling lists it may not be focused sufficiently on how to achieve its objectives. Taking a list approach can also result in items not being prioritised. For example, a long list of weaknesses may appear to be 'cancelled out' by a longer list of strengths, regardless of how significant those weaknesses are.
In a business a SWOT analysis forces an objective analysis of a company's position with its competitors and the marketplace. All tough an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have. SWOT Analysis is a very effective way of identifying Strengths and Weaknesses and of examining the Opportunities and Threats the business may face. Carrying out an analysis using the SWOT framework will help a business to focus its activities into areas where the business is strong, and where the greatest opportunities lie.
Strength is something that can be truly done well, can build on; something that truly differentiates a business. Every company has strengths. Strengths can be something like a large growing customer base or a well-run customer service department that keeps customers satisfied.
A Weakness is a real gap, a deficiency or a problem, something a business is not doing very well and that it should be doing better. One good outcome of a SWOT is to discover what a company really doesn't know and then do something about it. A weakness can be very tangible or it can be an attitude: e.g. a complete unwillingness to invest in any marketing initiatives or a lack of understanding what to do.
Opportunity is a favourable external condition; something that could impact a business positively. Opportunities are new ways that a company can exploit strength. Weakness and threats are new things that an organisation can do to potentially improve their business that turn into recommendations and actions.
Threat is something external to a business that can potentially impact it negatively like competitors changing conditions in the marketplace, the overall economy and government regulations. Threats are part of the playing field that a business can't ignore. Some threats, though, are internal: e.g. hanging onto the status quo when change is required or the impact on remaining if you decide to cut costs
Its sell by date is that you have to sell something before a date specified and after that date it would be out of date
You have to sell before a date specified