Critical Evaluation of Marketing Tool-Swot Analysis
Critical Evaluation of Marketing Tool-SWOT Analysis
The aim of this paper is to critically evaluate the SWOT analysis as one of popular tools in marketing. SWOT analysis is an analysis method of identifying all external and internal factors for organization strategies (Rauch, 2007). It is considered in this paper that though SWOT analysis has limitations, it can be improved to be more effective as its development. This paper firstly focused on the definition of SWOT analysis. And then it discussed the context of the SWOT analysis including its evolution and its applications. Followed by, the paper introduced two relevant practice cases based on SWOT analysis. Next, the critical evaluation of SWOT analysis was presented with
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20 companies used SWOT analysis in all or part of their process. And the 20 companies represent different sectors such as clothing, pottery, food and textiles etc. (Hill and Westbrook, 1997). The main SWOT analysis approaches they discovered included individual analysis after discussion, several managers’ analysis and collation and meeting consensus and meetings’ analysis. Finally 16 out 20 companies use the full SWOT analysis. In process of SWOT analysis, long lists of SWOT forms containing many factors each were produced. And the companies recognized more weakness than strengths, viewed more opportunities than threats. Furthermore they also found that in the long lists where there were only brief expressions to conclude in all factors. To conclusion, Hill and Westbrook (1997) stated that SWOT analysis, as one of the tools for analysis and strategic decision-making in their research, was not effective. Because there lacked of links between SWOT output and the final strategic suggestions. Structured lists, priorities ranking importance were not even used in the SWOT analysis of the companies. This research found that the SWOT analysis is ineffective and made the contribution of how to improve the SWOT analysis.
However, as the changing time and the development of SWOT analysis, the traditional SWOT analysis has been improved by either combining with other analysis or developing different dimensions itself to meet the needs of different companies. For example,