SWOT Analysis

Most business people will be familiar with the SWOT analysis.  But familiarity doesn’t devalue its role.

The main objective of the technique is to study the strength, weakness, opportunities and threats and improve the state of the Organisation by:

•    Using or capitalising on the Strengths.
•    Recognising and improving on Weakness.
•    Exploiting the Opportunities.
•    Working around the Threats either to avoid them or turn them into advantages.

Many companies carry out their own SWOT analysis.  No reason why not. But remember it is subjective.  PHC always carries out a SWOT when advising on Business Planning and direction.

Once key issues have been identified with a SWOT analysis, they feed into marketing objectives. SWOT can be used in conjunction with other tools for audit and analysis, such as PESTLE analysis

PESTLE Analysis

PESTLE factors are about the macro-environment forces.  Political, Economic, Sociocultural, Technological, Legal, Environmental.  Not, perhaps something every SME will concern itself about but very worth while considering.

Political Factors.
The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as:
•    How stable is the political environment?
•    Will government policy influence laws that regulate or tax your business?
•    What is the government's position on marketing ethics?
•    What is the government's policy on the economy?
•    Does the government have a view on culture and religion?
•    Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?

Economic Factors.
Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at:
•    Interest rates.
•    The level of inflation Employment level per capita.
•    Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on.

Sociocultural Factors.
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:
•    What is the dominant religion?
•    What are attitudes to foreign products and services?
•    Does language impact upon the diffusion of products onto markets?
•    How much time do consumers have for leisure?
•    What are the roles of men and women within society?
•    How long are the population living? Are the older generations wealthy?
•    Do the population have a strong/weak opinion on green issues?

Technological Factors.
Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:
•    Does technology allow for products and services to be made more cheaply and to a better standard of quality?
•    Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?
•    How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?
•    Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?

Legal.

Changes to legislation. This may impact employment, access to materials, resources, imports/ exports, taxation etc:

•    Employment Law
•    Competition Law

•    Health & Safety
•    International/European Agreement/LawCompetition Law
•    Regional legislation

Environmental.

What is happening with respect to ecological and environmental aspects
Environmental

•   Environmental impact
•   Environmental legislation

•   Energy consumption

•   Waste disposal