Another main part of marketing plan is SWOT analysis. It is a useful way to understand how company is performing. It helps in presenting, gathering and structuring data. It also helps in decision making, understanding the current situation and how competitors can affect the company. It can explain what the company is doing and what it can do in the near future.
SWOT is an abbreviation of Strengths, Weaknesses, Opportunities and Threats.
1. Strengths: it is was the company is doing better than its competitors, it is divided into two parts internal strengths which is what is happening inside the company. For example accounts and debts collection. The second part is external strengths, which can be described as the relationship between the company and the customer. For example, customer service.
2. Weaknesses: anything need improvement in the organisation. Identifying weaknesses is very important as it shows the weak parts of the company. It can be solved by different ways such as action plans. If weaknesses are not improved it will give competitors a huge chance to take over the company’s position.
3. Opportunities: it shows what the company can do in the future to improve the product and increase profit.
4. Threats: it shows any business harm coming from competitors.
In more details, strength of a company can be the location of the business or there is something the company is doing much better than competitors like promotion. Another strength can be the quality of product. USP is mainly the strengths of the company. Weaknesses can be a bad reputation. For example Wonga has the reputation of the massive interest they charge. It can also be the location of business or not innovated product. Example of opportunity is merging with another company which will help in increasing profit for both companies. A real world example of opportunity can be Microsoft and Nokia, Microsoft bought more than half of Nokia shares which will help both companies to increase sales. Another opportunity can be expansion or a competitor has left the market. Threats can be new taxes rule or price wars.
SWOT analysis is divided into two main parts and each part is divided into two. The first part is that something internal happening now which is divided into strengths and weaknesses. While the second part is something external might happen in the future.
For my product Renault Zoe, our SWOT analysis is:
Customer base and loyalty: Renault has one of the widest customer bases comparing to its competitors. Also most of our customers are loyal which will help in increasing Zoe’s sale as our customers will upgrade to it.
International market: Renault is available in more than 110 countries which made it easier for Zoe to penetrate the market in different countries.
Customer service: Renault customer service centre in the UK employing multilingual to make it easier for the customer. It also have a special website for Zoe users called myrenaultzoe.com which...