What You Should Know About SWOT Analysis

In order to ensure the success of an enterprise, the management must take a careful look at the marketing environment. It may be by means of a SWOT analysis. It means that the enterprise’s strengths and weaknesses should be noted, as well as the opportunities.

Strengths 

may include specialized management skills, a productive and well-trained workforce, and enough funds.

Weaknesses 

 The microenvironment may include an obsolete product range, unacceptable levels of pilferage, and a lack of capital. Lack of funds is one of the crucial problems experienced by small and medium enterprises (SMEs) in Nigeria. 

Read Also: Composition and Functioning of the Marketing Environment

One of the greatest strengths of SMEs is their management adaptability to a changing business environment. Hawkers selling groceries in the major towns and cities of Nigeria are able to adapt to changes in consumer demand almost immediately.  

Opportunities 

You may see that there has literally been an explosion of fast-food businesses in Nigeria. It would therefore seem that quite a number of budding entrepreneurs in Nigeria have identified opportunities in this sector.

Threats 

Threats are in the market and macro-environment. For example, a drastic fall in the Naira/dollar exchange rate. It will pose a threat to importers of luxury goods such as cars. At the same time, such a decline may result in an opportunity for exporters of Nigerian products to African countries, the European Union, and the USA. (They will be able to obtain a higher price in naira for their products).

SWOT Analysis                    

Executing a SWOT analysis is a must for any enterprise that wants to be successful in the business world. The following Self-Assessment Exercise will help to familiarize you with the elements of the SWOT analysis.

In summary, an enterprise functions within certain marketing environmental variables. These variables are known as controllable and uncontrollable variables. These variables influence the activities of an enterprise. 

Therefore, it is the duty of management to scrutinize those variables to see how they impact their enterprise and recommend strategies to help utilize opportunities.

Read Also: The Functions of Proper Marketing