Wednesday, 16 March 2016

Importance and Uses of SWOT Analysis in Market Research

SWOT (strengths, weaknesses, opportunities and threats) analysis continues to be one of the key ingredients in any market research report. The analysis helps to easily break down the important elements into a few insightful factors that allow readers to get a clear view of all the plus and minus points.

  • Helps focus on the Strengths vis-a-vis the larger industry: The strengths are particular to the business or sector under study and helps define the key factors that give them an edge in the market. These may be generic or specific positives but are actionable ones that the company can take advantage of right away and increase its lead over the competitors. These points help bring clarity on how to make advantageous use of these positive factors that are lending a helping hand. 
  • Allows for the identification of Weaknesses and ways to counteract them: The four-quadrant SWOT analysis also helps to identify the weaknesses of the company under study. These weaknesses are internal to the company or sector on which the research report is based. The identification of these minus points helps the reader to understand the factors that can be taken care of by the business without the need of additional support from the larger industry. 
  • Identifies the Opportunities and how to make the best use of them: The strengths section of the report helps to identify the larger factors that are working in favor of the company or industry that is being analyzed in the report. This is important as it helps the readers to get a concise overview of how the larger sector is doing and how it is helping the company/industry. The company or industry can then frame policies that will help it benefit from these factors. 

  • Pinpoints the larger sector Threats and helps refine ways to negate them: These threats are the larger negative factors over which the business has no control and which may affect the long-term prospects for growth. Knowing where the weak points lie help devise ways to counter them and take effective action to counter the tide.

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