SWOT Analysis: What are My Opportunities & Threats?
A SWOT (strengths, weaknesses, opportunities, and threats) analysis is a valuable tool when developing your marketing strategy. As part of your SWOT analysis, identify any opportunities your company can take advantage of and any threats you might face.
When you’re trying to identify your opportunities, ask yourself these six questions:
- What trends am I aware of in my industry?
- Are there any changes to policies or other regulations that could help my business?
- Are there new technologies emerging that we could use to stand out from our competitors?
- Is the economy changing in a way to encourage consumers to spend more?
- Is our target market growing?
- Is my local government encouraging consumers to shop at local businesses?
After you’ve made a list of potential opportunities for your small business, compare it to your company’s strengths. Ideally, you can use some of your strengths to take full advantage of some of your opportunities. Read also: You’ve Finished Your SWOT Analysis – Now What?
Examples of Opportunities
Let’s look at some possible opportunities for a clothing boutique:
- You can use the Instagram TV to give tours of your store and show off new pieces you have in stock.
- Your city is growing, meaning you could have more walk-in traffic.
- A local department store recently closed. You might be able to gain some of their customers.
To identify your threats, ask yourself the following five questions:
- Do we have any new competitors?
- Are any of our competitors gaining a strong foothold in our target market?
- Is our target market shrinking?
- Are there any changes to policies or other regulations that could harm my business?
- Is there new technology emerging that could threaten my business?
You can’t predict the future, but by considering potential threats, you’ll be better prepared if they happen.
Examples of Threats
To help you think about what could threaten your company, let’s look at some potential threats for a clothing boutique:
- You’ve been selling quite well online, but now you have to charge customers sales tax in other states. You can’t afford to keep up with all the requirements. Read also: Do I Have to Collect Sales Tax in Other States?
- A local competitor put up a billboard on a major highway near your store.
- Your local television station has increased its advertising costs.
A thorough SWOT analysis allows you to consider internal and external factors that could influence your company’s success to develop an effective marketing plan. Learn more about how to perform a SWOT analysis.