Hello everyone.
This time, I will provide a detailed explanation of SWOT, which is an essential framework for strategic planning for companies and projects, from the basics to practical applications.
By watching this video to the end, you will be able to master the analysis method using SWOT and understand how it can be specifically applied to your marketing activities.
So let’s get into it.
SWOTの概要と歴史的背景
First, let’s review the basic knowledge of what SWOT is.
SWOT is a framework for organizing the strengths and weaknesses of the internal environment, opportunities and threats of the external environment, and comprehensively understanding the situation in which the company and its products are placed.
It is widely known in Japan as a textbook method for management and marketing strategies, and many companies use it as a basis for decision-making.
This method is said to have originally been developed by American management consultants in the late 1960s, and has continued to be supported by business people around the world ever since.
The name SWOT is an acronym for Strength, Weakness, Opportunity, and Threat, and by combining these four perspectives, we derive hints for decision-making.
For example, develop a strategy to capitalize on a product’s strengths to capture market opportunities. By clarifying these relationships, companies can better allocate their limited resources.
内部環境の構造理解：強みと弱み
Internal factors, which are the first half of SWOT, include Strength and Weakness.
First, we will delve into Strength, or what makes your company better than your competitors.
Specifically, these include product quality, technological capabilities, brand recognition, human resources, cost competitiveness, and channel network.
These elements are a company’s core competencies and the backbone of its competitive advantage.
Next is Weakness, which refers to areas for improvement within the company and competitive issues.
Here, we uncover hidden weaknesses, such as rigid organizational structures, weak financial foundations, delays in adopting new technology, lack of brand power, and inadequate customer support systems.
外部環境の構造理解：機会と脅威
Next, we will delve into Opportunity and Threat, which are External factors.
Opportunity refers to new business opportunities that arise due to changes in the external environment.
It refers to factors that companies want to actively incorporate, such as changes in social trends, technological innovation, market expansion, deregulation, and partnership opportunities.
On the other hand, threat refers to risks and disturbances received from the external environment.
Factors that can hinder a company’s growth include economic recession, intensifying competition, the speed of technological innovation, new entry, and tightening regulations.
If you develop a strategy without accurately assessing the threat, your response may be delayed and losses may increase when unexpected problems occur.
SWOTの組み合わせによる戦略立案
After sorting out the internal and external factors, it’s time to move on to cross-analysis.
First, by combining Strength and Opportunity, we will draw up an aggressive “SO strategy”.
We develop growth drivers by maximizing our strengths and capturing market opportunities.
For example, a company with high technological capabilities may identify the needs of an emerging market and expand its market share by introducing a unique product.
Next is the “ST strategy” which combines Strength and Threat.
We formulate so-called defensive measures that protect your company from external threats by using your strengths as a shield.
An example of this is when a company with strong brand power strengthens its quality-oriented positioning when faced with intensifying price competition.
The WO strategy, which combines Weakness and Opportunity, is a strategy that seizes new opportunities while overcoming internal weaknesses.
For example, a company with an underdeveloped marketing system could take advantage of the wave of digitalization and introduce online advertising to diversify customer acquisition routes.
Finally, the “WT strategy”, which combines Weakness and Threat, is the area where risk hedging is most required.
Internal weaknesses are easily exposed, and if external threats materialize, it can directly lead to a business crisis.
We will take measures aimed at minimizing losses, such as selling unnecessary assets, withdrawing from business, and strengthening through M&A.
マーケティング活動への応用
Now, we will discuss how to specifically apply SWOT to marketing activities.
First, by practicing SWOT at the initial stage of marketing strategy design, you will have great clues for selecting target markets and building positioning.
Clarify differentiating factors based on Strength and allocate resources to growth areas indicated by Opportunity.
This allows you to formulate strategies that are not temporary and have your own unique advantages.
Next, in product marketing, we refine the product concept based on internal and external elements extracted from SWOT.
For example, we can focus our strengths on developing functions that reflect user needs, while at the same time clarifying the points of differentiation from competing products.
Also, by reflecting market trends perceived as external opportunities in product improvements, you can build an advantage that puts you one step ahead of your competitors.
It can also be applied to promotional activities.
In message design for advertising communications, we create a brand story based on Strength and develop creative that resonates with the consumer psychology indicated by Opportunity.
Regarding threats, we will prepare a crisis response flow in advance as a crisis communication plan and build a system that allows us to continue marketing activities while minimizing risks.
In terms of channel strategy, we will leverage the strength of our own distribution network while expanding our efforts in online channels and OMO (Online Merges with Offline), which are classified as new sales channels.
This dramatically increases your reach to both traditional and emerging customers.
事例
Here I will explain how SWOT has been useful based on domestic and international examples.
A major beverage manufacturer entered the functional drink market, leveraging the strength of its own research and development system and accurately capturing the opportunity of increasing health consciousness.
At the same time, anticipating the threat of new entry by other companies, they made large-scale communications investments to improve brand recognition in a short period of time and establish a competitive advantage.
In addition, they have overcome the weakness of persistently high manufacturing costs by consolidating and closing overseas production bases, and have succeeded in improving profitability.
実践ワークとまとめ
Finally, I would like to suggest some practical work for the viewers.
For your company and the products you are responsible for, first identify Strength and Weakness, then research Opportunity and Threat.
By proactively utilizing not only primary information but also secondary information such as statistical data, industry reports, and comments from SNS, a more accurate SWOT can be completed.
Based on the results, consider which of the four strategy types is best for your company, and share it with your team at your next marketing meeting.
This video covered the basics of SWOT, examples of its application to marketing, and even practical work.
By continuously using SWOT, you can constantly grasp the current situation of your company and develop organizational skills that can respond flexibly and quickly to changes in the environment.
Please try it today.
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This article uses material from the Wikipedia article “SWOT analysis” which is released under the Creative Commons Attribution-Share-Alike License 4.0.