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Tom,
I had recently emailed you about help with my college marketing
project. I want to say thank you for all the terrific web sites
on Krispy Kreme. I presented my SWOT Analysis last week and I
received a 92 for my grade. Again, thank you so much for your
help. This grade would not have been possible without your help
with the web sites.
T. H, New York University
How To
Do A S.W.O.T. Analysis
By Tom Egelhoff
 Your company should do a SWOT analysis
at least twice a year. What is a SWOT analysis you ask? It stands
for Strengths, Weaknesses, Opportunities and Threats. In this
article I will explore each one and show you want each means
to your business.
First you'll divide the four components into two sections.
Strengths and weaknesses are internal elements of the SWOT analysis
and those are areas of your business that you can control in
most cases. Opportunities and threats are external elements and
in most cases you will not have control over them but you have
to keep them in mind for a successful business. Next you need
to look at each part individually.
Strengths
This element is easy. It's simply the things that you do well
in your business. Products and services that your business excels
in. However just because you are good at something doesn't mean
that you take this element for granted. Just like we exercise
to improve muscle tone you need to keep your business muscles
strong and toned as well. Your business should be constantly
trying to do better.
Weaknesses
This one can also be tough for some business owners. It's
not easy to admit your weaknesses. However in the interest of
business success you need to put ego aside and take a hard long
objective look at your defects. A weakness is not a bad thing
unless its something you can't change. But remember I said this
is one of the two elements that you have some control over.
Analyze your weaknesses and look for ways to turn them into
strengths. It may not be something you can change overnight but
if it isn't - sit down and create a plan to change it to strength.
Or perhaps it's a product or service that you might not need
to provide for a while or eliminate altogether.
Opportunities
The Atkins diet created a great opportunity for cheese, eggs,
red meat, fish, pork and many other high protein products. Suddenly
bacon, sausage and eggs are diet food. These industries did not
create this feeding frenzy. External forces beyond their control
created it but they wasted no time in capitalizing on it.
The lesson here is to not only keep up to date with what's
happening in your industry but also in your community and other
industries. Opportunities can often come from some "left-field"
inspiration. When an opportunity arises you need to be able to
react quickly and capitalize on it.
Threats
While I am on the subject of the Atkins Diet who did it present
a threat to? How about Krispy Kreme Donuts not to mention bread,
cookies, potato chips, milk, yogurt, and the list goes on and
on. You might say, "No one could predict that the diet would
catch on like it did." You would be right. There was no
way to prepare for this particular threat but you could look
at the negatives of your product or service and be aware of areas
to attack.
In the 1930's Coke had the most recognized package in the
world the six-ounce swirling bottle design. There were six and
a half million of these bottles in vending machines all over
the country. Pepsi decided to attack Cokes strength its package
and distribution method. Pepsi came out with the twelve-ounce
bottle at the same nickel that Coke was charging. Coke sales
slumped across the country. Faced with twice as much product
for the same price people chose Pepsi. Coke not only had to enlarge
their distinctive bottles and meet Pepsi's price but also retool
all their vending machines that were only designed to carry the
smaller bottles. It was a very expensive threat to Coke.
The bottom line of your SWOT Analysis
As you can see there are always going to be opportunities
and threats to your business. Some will be real some will not.
The movie industry was concerned that TV would empty movie houses.
Both are stronger today than they've ever been because they turned
perceived weaknesses into strengths and opportunities. Take a
cold hard look at your business though the eyes of a SWOT analysis
and you may find success where you never saw it before.
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This article may be reproduced for your non-profit
group or organization provided it is not altered in any way and
the following is attached:
©1998 - 2005 Eagle Marketing PO Box 271 Bozeman, MT
59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll FREE
(888) 550-6100
email: tommail@smalltownmarketing.com
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your
Business Or Service In A Small Town, and The
Small Town Advertising Handbook: How To Say More And Spend Less.
He is also a seminar and workshop presenter
and trainer. He may be reached at 888-550-6100 or PO Box
271 Bozeman, MT 59771-0271
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