Companies use the Forces, Weaknesses, Opportunities and Threats (SWOT) analysis to determine the internal and external factors that directly influence their operations. If a company does not analyze its operations using the SWOT analysis, it runs the risk of launching a product marketing campaign that is unsuccessful. Another term for SWOT is SWOC, which represents strengths, weaknesses, opportunities and challenges. SWOT and SWOC are the same, with "challenges" and "threats" being essentially the same thing.
Strengths
The strengths of the SWOT analysis are used to determine what your business does best. If you know the strengths of your business you can put emphasis on them when it comes time to implement your marketing program. For example, if you know you can make a product cheaper than anyone else in your industry can, list that as a force. You do not need to be the best in the industry at something to list it as a force - your strengths are based on internal and external performance.
Weaknesses
Knowing the weaknesses of your business is fundamental to the SWOT analysis. Whatever your business struggles with or lacks is considered a weakness. For example, limited production capacity is a weakness: You know you can not mass market a new product because it can not meet a high demand if it materializes. If you know the weaknesses of your business, you can avoid focusing a marketing and advertising strategy around those weaknesses.
Opportunities
Opportunities are emerging scenarios by which your business can grow and succeed with a new or existing product. An opportunity can be an unattended market, an emerging technology or anything you can add to your business. For example, if you own a technology business that installs high-speed Internet infrastructure, a developing country could offer many opportunities for your business to expand and grow, ultimately becoming the leader in technology services. If you know the opportunities facing your business, you can focus your strategy and resources to achieve specific goals.
Challenges and threats
The threats or challenges your company faces in implementing a marketing program are perhaps the most important factors in a SWOT analysis. You may have a solid marketing plan to a clear and specific set of strengths, weaknesses and opportunities, but if you do not consider the challenges in your industry, your plan might be worthless. For example, if your technology business introduces a similar mobile phone application and is indistinguishable from the application of another company that currently dominates the market, the success of your product faces a threat. Knowing the challenges you face helps your company make informed and strategic decisions about products.