Introduction
The way companies advertise has changed since the market went global. Organizations are no longer limited to local needs; they now work on a global scale and face many different opportunities and challenges. To succeed in this world, they must approach some of these challenges head-on. One way is through something called SWOT analysis. It is a structured framework that helps companies evaluate inside and outside factors impacting their marketing efforts. Strengths, weaknesses, opportunities, and threats all fall into this framework.
Strengths – When you take what you have got internally
Strengths encompass everything inside an organization, giving it an advantage over its competitors. If a company were to look inside itself with a SWOT analysis, it could identify all of those core competencies and use them to help with international marketing. A great example is Apple Inc. It could make itself known worldwide by using its internal qualities of innovative products and a well-known brand reputation. They used SWOT analysis to help identify what was good about them, then highlight their unique product features and design aesthetics when creating their marketing strategies.
Weaknesses – Addressing Internal Challenges
Companies must identify and address internal weaknesses to execute a global marketing strategy. Fortunately, a SWOT analysis allows them to do this with ease. A company must keep up with the ever-changing demands of the international market due to limited resources for research and development to succeed. The SWOT analysis helps them develop strategies to mitigate weak points that they discover. They can form partnerships or outsource innovation efforts.
Opportunities – Seizing Global Market Prospects
A plethora of opportunities is offered in global markets. Through a SWOT analysis, businesses are equipped with the tools to identify and take advantage of these prospects, such as market research, competitor assessments, and consumer behavior analysis that work together to find untapped market niches. Airbnb is an example of taking advantage before anyone else did by connecting travelers with unique lodging options worldwide, which revolutionized hospitality across the planet. But how? Simply by recognizing this opportunity and aligning their marketing strategies using the data from their SWOT analysis.
Threats – Mitigating External Risks
Opportunities come knocking in global markets, but threats do as well. A SWOT analysis can help companies find and combat risks to their international marketing strategies. Political instability, economic downturns, and regulations evolving rapidly are all things that can be a company’s downfall. For example, the food and beverage industry is now being looked at more closely for health concerns. If they are not careful, it can significantly impact global marketing efforts. By doing a SWOT analysis, companies will be better suited to see these threats, create an escape plan, or change their marketing strategy to adapt.
Evidence of SWOT Analysis Efficacy
Multiple case studies showcase how SWOT analysis is efficacious in improving global marketing strategies. When it came to Coca-Cola, it was no different. A SWOT analysis helped them adapt marketing strategies as more people became health-conscious globally and identified the opportunity for healthier beverage options (Liu, 2021). They also addressed the threat of sugar in drinks due to increasing scrutiny. This strategy resulted in globally successful campaigns for their products like Coca-Cola Zero and Diet Coke.
On the other hand, Toyota revealed in its SWOT analysis that its commitment to innovation was a significant strength. From this, they opted for strategies showcasing their hybrid technology, like the Prius, which successfully allowed them to expand into the eco-conscious market (Kar & Harichandan, 2023). When Nike did a SWOT analysis, they discovered that their crucial strength lay within their strong brand and endorsement from top athletes. Driven by this information, they ran global marketing campaigns focused on athletes endorsing products and giving them a premium image (Meng & Zhang, 2021).
Conclusion
Companies across the planet face many challenges and opportunities in their marketing strategies. A SWOT analysis is a tool that helps evaluate their internal strengths and weaknesses and identify external opportunities and threats. Companies can create more effective marketing strategies when appropriately used by taking advantage of their strengths, patching weaknesses, capitalizing on opportunities, and lowering potential threats. Its ability to do this has often been proven, reinforcing its importance as the core of international marketing planning. With global markets changing daily, companies that use a SWOT analysis to formulate strategy will be better positioned to thrive.
References
Kar, S. K., Sinha, A. S. K., Bansal, R., Shabani, B., & Harichandan, S. (2023). Overview of hydrogen economy in Australia. Wiley Interdisciplinary Reviews: Energy and Environment, 12(1), e457.
Liu, S. (2021). A Report on Strategic Analysis and Recommendations of Coca-Cola. International Journal of Frontiers in Sociology, 3(17).
Meng, S., Wei, B., Xu, G., & Zhang, R. (2021, September). Analysis of Enterprise Operation Under the Impact of COVID-19 Epidemic: A Case Study of Nike Inc. In 2021 International Conference on Financial Management and Economic Transition (FMET 2021) (pp. 137-145). Atlantis Press.
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