Digital Marketing SWOT Analysis

Ignoring the small details may mean problems in the future

SWOT is a well-known business term, however, I see few startups employ this tool as a part of their digital strategy. It serves as an essential component of an online marketing plan and informs the long term direction of a company. In this guide, we’ll show you how to successfully perform a Digital Marketing SWOT Analysis.

Most clients focus solely on the execution side of online strategy such as search or email marketing. SWOT, on the other hand, is a strategy development tool. It allows a digital firm to determine its Strengths, Weaknesses, Opportunities and Threats. This strategic view allows a firm to leverage its best areas and work on perfecting its weak points to ensure success.

Before we plunge into the details of the Digital Marketing SWOT analysis, let’s consider the small details that others ignore and, as a result, suffer.

A Brief Overview

Strengths and Opportunities are your positive factors while Weaknesses and Threats are your negative factors. Pretty self explanatory. The top row of your analysis contains internal factors. For example, a strength may be key personnel years of experience and a weakness may an underperforming distribution channel.

The second row outlines external factors. An example of an opportunity would be a growing demand forecast for the product and a threat might be a a government bill that negatively impacts your company or entire industry.

If we observe them closely, Strengths and Weaknesses can be controlled by the firm itself. On the other hand, Opportunities and Threats are part of external environment and cannot be controlled by the firm.

Here are 5 steps to an insightful Digital Marketing SWOT Analysis:
1. Determine Strengths
  • How is your organization better than others?
  • What advantages can your firm leverage?
  • What quality or cost-effective resources are available to you but not others?
  • Which factors result in definite sales?
  • What do competitors consider your company’s strengths?
  • What is your unique selling point?

EXPERT TIP: To gauge your strengths, a complete 360 degree view is required. This includes how your customers, competitors, and stakeholders view you. Use our free, editable SWOT analysis template for better results.

2. Determine Weaknesses
  • What internal processes need improvement?
  • What do your customers say needs improvement?
  • What factors contribute to loss of sales?
  • What do competitors view your firm’s weaknesses?
  • What are activities to avoid?

This is a stage where you must avoid myopia. Be realistic and generate as much data as possible so that you don’t have to learn it the hard way.

EXPERT TIP: Again, you need a holistic view of the organization and its stakeholder to come to a list that matters. How are you competitors doing better etc.?

3. Find Opportunities
  • Are there any interesting trends that you can benefit?
  • Are there any good opportunities lined up?

Opportunities can appear in different ways for example, a government policy that might help your industry. Change in lifestyle, population and economic and social patterns.

4. Find Threats
  • What are the barriers?
  • Does a Government regulation can hurt your business?
  • Does a technology change can make your product obsolete?
  • Are competitors working on a better product/service?
  • Do you have Cash-flow or bad debt issues?

Opportunities can appear in different ways for example, a government policy that might help your industry. Change in lifestyle, population and economic and social patterns.

5. Develop a Strategy

Once you finish the online marketing SWOT analysis, it is time to translate these into short and long term strategies. Your findings are just the tip-of-iceberg. The real work starts now.

Where to begin? For that you need to overlap your strengths, weaknesses, opportunities and threats with each other. This is called TOWs analysis.

TOWs analysis allows you to determine how you can use your internal strengths to maximize opportunities and minimize threats. Similarly, you can create strategizes that minimize weaknesses by taking advantage of opportunities and minimize weaknesses to avoid threats.

Spending time to determine your capabilities is essential to your digital marketing strategy.

 

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