This analysis is mainly used in strategic management where that organization aimed at having a competitive advantage from its competitors and it is continuously reviewed. SWOT analysis has been upheld by many organizations, its benefits explored and also its weakness criticized (Evans, and Wright, 2009, p. 10). It is in this bid that this paper will be committed to discussing the thesis statement: SWOT analysis is deeply flawed and should not be applied as a modern marketing tool. Figure 1 The Inherent Weaknesses of SWOT Analysis To begin with, SWOT analysis is flawed as a marketing tool since it does not provide with all the information that is required by managers for strategic planning. From the face value, SWOT analysis is perceived by many people as an easy process. This is since all that a business is expected to do is implement the four quadrant SWOT analysis in the business. This is where the business capitalizes on its opportunities and strengths while mitigating its weaknesses and threats. However, this is not easy and critical information necessary for making marketing decisions is overlooked by the SWOT analysis. It is flawed since it does not separate this information from the pivotal information that the organization needs to embark on immediately and the peripheral information that can be addressed. This translates to misplaced priorities as the marketing team will be more focused in exploiting the opportunities yet there are some threats that if not dealt with immediately will translate to massive losses. Moreover, as pertains to the SWOT analysis, it does not provide a guideline that shows which customer base is the most attractive, which strategy is the most powerful. Lack of guidelines as pertains to the results obtained from carrying out a SWOT analysis makes it flawed and hence should not be applied as a modern marketing tool (Valentin, 2001, p. 58). Subsequently, SWOT analysis is deeply flawed and should not be used as a marketing tool since it is a checklist to evaluate the performance of the strengths and weaknesses identified upon carrying out a SWOT analysis. This is evidenced with an illustration of an example of a strength that has been identified by a business upon carrying out a SWOT analysis as a marketing tool. A business has identified its leadership in market share as strength for the benefit of the organization. On face value, this looks productive since positive correlations have been documented to exist between leadership in market share and the profitability of the organization. The business consequently surges forward to exploit the strength, without bearing in mind the minute details of leadership in market share leadership that may affect the performance of the business. The organization by relying on the SWOT analysis fails to assess if leadership in market share is relevant to the organization and if the investment made by the organization is feasible. Use of checklist in SWOT analysis makes it a flawed marketing tool due to lack of leverage of the decisions made and hence not a good modern marketing tool (Kotler, 2000, p. 78). Moreover, SWOT analysis is deeply flawed and should not be used as a marketing since it has been described as being vague and simplistic. This is evidenced
SWOT ANALYSIS IS DEEPLY FLAWED AND SHOULD NOT BE APPLIED AS A MOBERN MARKETING TOOL Name Institution Marketing Tutor Date Introduction Marketing involves making the ideas, services or goods produced by an organization accessible by the targeted consumer. In bid to achieve this objective of marketing, marketing tools that have developed aimed at assisting the organization to make the most viable decision…
As such, the plan has been broken down to be analyzed upon these 4 contingent areas as follows: Strengths With respect to overall strength of the business plan, the target market is a perfect segment for such an offering as the target demographic and need both exist in ample supply based upon the demographic information provided in the analysis.
In line with this, this paper wants to closely examine the applicability of the SWOT analysis to business organizations by determining its strengths and weaknesses. The first section will provide an overview of the strategic management tool, after which the tool will be applied to a specific business organization.
xpenditures on R&D, Toyota has large capacities to produce and utilize new technologies as it has already done with the introduction of its new electric/petrol hybrid vehicle, the Prius.
4. Toyota enjoys a brand positioning of high quality, reliability and durability all over
SWOT as an acronym represents the Strengths, Weaknesses, Opportunities and Threats that define a business’s environment. The identification of these aspects of a business helps in establishing a strategic plan for the organization. The SWOT analysis is also essential in the
Due to the flaws in the approach, some scholars have argued that implementing it in the market place is detrimental to the business.
It is important to evaluate a Company’s Resources and its competitive position. There are five most common areas used to analyze
However, despite such huge popularity and global acceptance, the SWOT analysis largely falls short in effectiveness.
The paper begins with a brief analysis of the scope and importance of SWOT tool and then goes forth to make a comparative and critical analysis of the
A SWOT analysis is at the heart of any business and a key ingredient in the current and future success of any business venture.
Snelling (2012) notes that at the heart of a SWOT analysis is the process of identifying the objectives of a