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Digital marketing experts know SWOT analysis is a very simple but powerful tool that helps in developing the strategy for any business, whether it is under construction or on the ground.
Definition of SWOT analysis
Called the quadruple pickling tool, it is an analytical framework that is used with the aim of evaluating the company’s competitive position and knowing the strengths and weaknesses as well as the opportunities and threats that businesses are exposed to.
Digital marketing agencies in Egypt rely on SWOT analysis as a basic evaluation model to measure what a company can do and what must be avoided in order to contribute to the success of the business.
What are the elements on which the SWOT analysis depends?
There are four elements that underlie this type of analysis, and they are:
It defines the strengths of the company and the factors that make the company more likely to succeed in its field of work, compared to other similar businesses, and the points of superiority of its competitors in this field.
Firms that can identify their own strengths are more likely to succeed.
It is important to identify weaknesses that contribute to reducing the chances of success of your project and the elements that your company lacks in order to reach optimum performance, and this helps you identify the elements that your company needs in order to be able to compete.
When you reach the point of identifying weaknesses, your company can take steps to turn them into strengths.
Knowing the opportunities helps you identify the external factors available to give your company a competitive advantage, increase profits and productivity, such as changes in government regulations and make it easier for companies to make profits.
It is a process by which factors that may cause harm to your company are identified, such as unexpected changes in laws, taxes, or high costs of inputs, and identifying threats helps business owners to limit their impact.
How to Do a SWOT Analysis?
When starting to conduct this analysis, you must first create a profile of your company that includes a description of what you do and who the customers are, and then follow the following steps:
Select your target
In order to fully benefit from SWoT analysis, you must have a goal to strive for, and this helps you know what to do.
Before starting this analysis, you should understand your business and the market by conducting a series of research on your competitors.
Identify the strengths of your project
You should know the strengths of your brand, the efficiency of your employees, and the advantages that you have in terms of competitiveness, and this comes by answering some questions:
- What distinguishes you from others?
- What do customers find special about your brand?
- What competitive advantage do you have over the rest of your competitors?
Know your weaknesses
Knowing your weaknesses helps you know what you are doing to improve your business and avoid things that weaken your competitive strength.
Identifying potential opportunities
This step is to identify the opportunities facing your business, product, or project. Opportunities refer to those positive things that are out of your control that could have an effect on you.
Know the threats you face
List the external factors that could pose a threat or cause harm to your business, such as increased competition, higher interest rates, changes in global markets, etc.
Importance of SWOT Analysis
There is a big role for SWOT Analysis that is the important performance through which it can help institutions and companies to improve their position in the market and increase the percentage of competitiveness of their brand, through some points, the most prominent of which are:
- Knowing the strengths and maximizing their utilization to achieve business goals.
- Demonstrating the company’s weaknesses and providing an opportunity to impress with its knowledge and turn it in its favor.
- Explore opportunities to develop your company.
- Study potential business threats and make major improvements to development plans.
- Encouraging the development of alternative plans and arrangements for emergencies.
The SWOT analysis methodology highlights all the company’s resources, as well as adds creative and creative ideas to marketing strategies to help face difficulties.
SWOT analysis also helps business owners and industrial and commercial institutions to learn how to manage risks facing your business and the art of learning to manage them and to know how to measure the performance of your business compared to your competitors in the market.
Suffice it to remind you at the end, that SWOT analysis is often used at the beginning of or as part of the strategic planning process, and this framework is powerful support for decision-making because it enables the company to explore opportunities for success that were not previously used.