Before Porter’s Five Forces, Albert Humphrey, a Harvard Business School graduate, was accredited for developing the SWOT analysis, a framework for assessing internal and external elements for strategic initiatives (Teoli et al., 2023). It organizes elements using a matrix-like approach. It has been widely used across many industries and segments. It has been adopted by marketing risk management strategy. Its framework consists of the following components:
SWOT Analysis - Marketing Risk Management
(DashClicks, 2023)
Strengths: This component is housed within internal factors and positive influences. The strategist works with a team to devise what factors place them in a better position than others.
Weakness: This component is housed within internal factors and negative influences. Weaknesses present opportunities for improvement and internal factors the company should consider when navigating the competitive landscape. Weaknesses can hinder performance or present negative risks.
Opportunities: This component is housed within external factors and positive influences. One way to approach opportunities is to question how to leverage strengths to influence external factors, creating gains. What changes in the external environment generate new opportunities?
Threats: This component is housed within external factors and negative influences. Threats generally encompass negative risks that can cause an organization to experience losses.
Quick consideration: Unconscious biases can influence the results of a SWOT analysis and present challenges. Consider periodically hiring a neutral third party to provide a SWOT analysis and compare it to your internal efforts to calibrate your results. Each element should be identified using an unbiased, metrics-based, critically assessed approach. How is each entry supported by your metrics? How was each metric devised/calculated?
DashClicks. (2023, December 14). How to Conduct a SWOT Analysis for Marketing Agencies.
Teoli D, Sanvictores T, An J. SWOT Analysis. [Updated 2023 Sep 4]. In: StatPearls [Internet]. Treasure Island (FL): StatPearls Publishing; 2024 Jan-. Available from: https://www.ncbi.nlm.nih.gov/books/NBK537302/
Comments