The SWOT Analysis is a popular marketing and business strategy tool but is often used less effectively than it should be.  By following three straightforward principles you can make sure that your next SWOT Analysis become a valuable analytical technique.

1.  Make sure you put the right things in the right part of the SWOT matrix.

A common mistake with a SWOT is to confuse Strengths and Opportunities, and Weaknesses and Threats.  The result is a confusing collection of facts, thoughts and perspectives - and one that prevents you following through on the other two principles.

Remember, Strengths and Weaknesses are internal to your business; they are things that you can control and make decisions about.  Opportunities and Threats occur in the outside world; they are not within your scope of control, although you might have some influence and should certainly take them into account when making your marketing decisions.

2.  Make sure you put the most significant points in each part of the SWOT matrix.

A second mistake is to use the SWOT exercise as a "brain dump", putting absolutely anything positive about the business under Strengths, listing every single weak point under Weaknesses, and capturing everything that's happening in the business environment under the other sections.  This simply leaves you with a mass of information, with no priorities, and no basis on which to make sound strategic decisions.

Instead, your SWOT should focus on the most significant points under each heading.

Strengths should be:

• Valuable to the business or to its customers;
• Not shared with competitors;
• Difficult or expensive to copy;
• Able to be put to use for the business.

Weaknesses should be:

• Significant to the business or to its customers;
• Not shared with competitors or could give the business a competitive advantage if addressed;
• Not easy or cheap to fix;
• Not counterbalanced by other factors.

Opportunities should be:

• Unlikely to prevent the business taking advantage of other opportunities;
• Large enough to be worth cost/effort;
• Accessible, i.e. they can be taken advantage of by the business;
• Likely to be around long enough to be worth taking advantage of.

Threats should be:

• Not mitigated by other external factors;
• Large enough to make an impact;
• Not mitigated by actions the business is already taking;
• Likely to be around long enough to have a significant impact.

This approach will ensure that you are able to focus on the most signifcant things both within your business and affecting it.

More on marketing: The Marketing Environment * The Marketing Plan * The Marketing Mix

3.  Make sure you use your SWOT Analysis to help you take action.

The analysis of where your business is a good start but what decisions do you need to take to follow through on it?  You need to consider:

• How do address your Weaknesses and turn them into Strengths?
• How do you build on your Strengths to secure the advantages they give you?
• How will you work with your Strengths to make the most of your Opportunities?  Which Weaknesses do you need to address first to exploit the most attractive Opportunities?
• How can you protect yourself against your Threats by working on Weaknesses and Strengths alike?

With a sound SWOT Analysis under your belt, you will be in a far better position to develop a business and marketing strategy.

If you would benefit from some help with developing your marketing strategy, contact Clarity Marketing.