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  • Writer's pictureSarah Butler

SWOT Analysis Explained - How It Can Be Used To Improve Your Marketing Strategy

A SWOT analysis is a simple but powerful tool that helps you understand your business's Strengths, Weaknesses, Opportunities, and Threats. This article will explain how to do a SWOT analysis to make better marketing decisions and stay ahead in the game and show how to do one with an example using the Apple iPhone.

By using a SWOT analysis, you can spot chances to grow, avoid problems, and match what your business is good at with what people want. Without a SWOT analysis, you might miss these insights and make less effective decisions.


The Strengths element of a SWOT analysis relates to the internal positive attributes and competitive advantages of a business. These are areas where the business performs well or has distinct capabilities. Strengths can range from tangible assets like advanced technology, strategic locations, or strong financial resources, to intangible assets like a good brand reputation, skilled workforce, or unique expertise. Recognising these strengths is critical as they set the business apart from its competitors. A thorough understanding of these positive elements will allow an organisation to capitalise on its advantages and create strategies that leverage these strengths effectively.

For instance, let's consider the example of an organic coffee shop named Eco Brew. One of its core strengths could be its exclusive sourcing of high-quality, ethically produced, organic coffee beans, which aligns with the growing consumer preference for sustainable and ethical products. Another strength might be its central location in a bustling urban area, bringing in a high volume of foot traffic. Furthermore, the expertise of its baristas who have mastered the art of coffee-making could be a significant strength, resulting in a consistently superior product that boosts customer satisfaction and loyalty. Each of these strengths offers a distinct competitive advantage that Eco Brew can highlight and leverage in its marketing.

To identify the strengths of a business, consider the following questions:

  • What unique resources does the business have (like a highly skilled team, patent rights, or prime business location)?

  • What does the business do better than its competitors?

  • What aspects of the business receive the most positive feedback from customers?

  • What do customers or market research say are the advantages of the business over competitors?

  • Are there unique partnerships or relationships that the business has built over time?

  • What is the company's unique selling proposition (USP)?


The Weaknesses element of a SWOT analysis refers to the internal aspects of a business that may hinder the achievement of its objectives or place it at a disadvantage compared to its competitors. These can include gaps in resources or capabilities, operational inefficiencies, or areas where competitors have an edge. Recognising these weaknesses is vital, as it enables a business to address areas of vulnerability, mitigate potential threats, and develop strategies to improve its overall performance. Moreover, by identifying and understanding its weaknesses, a business can avoid strategies that are likely to fail due to these limitations.

Let's return to our fictitious coffee shop, Eco Brew. One of its weaknesses could be a higher pricing structure due to the cost of sourcing organic, ethically-produced coffee beans. This could potentially put off customers who are seeking cheaper alternatives. Another weakness might be its limited seating capacity, restricting the number of customers it can serve during peak hours. Also, the coffee shop may lack a strong online presence, missing out on potential customers who rely heavily on online reviews or digital marketing when choosing where to dine. Each of these weaknesses represents a potential risk or challenge that Eco Brew needs to address as part of its strategic planning.

To identify the weaknesses of a business, you might ask the following questions:

  • What areas of the business need improvement?

  • What does the business lack (e.g., resources, expertise, access to technology)?

  • What parts of the business do customers criticise?

  • In what areas do competitors outperform the business?

  • Are there internal processes (e.g., customer service, quality control) that could be better?

  • Are there gaps in the product range or services offered?


Opportunities refer to external factors in the environment that a business could potentially leverage to its advantage. These could be emerging trends, market gaps, shifts in consumer behaviour, technological advancements, or changes in regulatory environments. Spotting these opportunities and seizing them can help a business grow, diversify, improve its market position, or overcome challenges. Importantly, recognising opportunities is a proactive task requiring continuous scanning of the business environment and a willingness to adapt and innovate.

Going back to Eco Brew, one significant opportunity could be the growing trend towards online ordering and home delivery of food and beverages. With an increasing number of people preferring to order online, Eco Brew could explore partnerships with delivery platforms or invest in its own delivery infrastructure to tap into this trend. Additionally, the growing demand for plant-based alternatives offers an opportunity to expand its menu offerings with vegan-friendly food and beverages. Finally, rising awareness about sustainability could be an opportunity to position itself as a green, eco-friendly business, resonating with consumers who are conscious about their environmental impact. Each of these opportunities represents a potential avenue for growth and differentiation.

To identify opportunities for a business, you might ask the following questions:

  • What trends or changes are occurring in the industry or market?

  • Are there new technologies or ideas that the business could adopt?

  • Are there upcoming changes in regulations that could benefit the business?

  • What demographic shifts could affect the business positively?

  • Are there market segments that the business hasn't explored yet?

  • Are there changes in consumer behaviour or preferences that the business can cater to?


Threats encompass external factors that could potentially harm a business. These are elements in the wider environment that the business has little to no control over, including economic downturns, increasing competition, changing consumer behaviours, or regulatory changes. Identifying these threats is crucial for any business, as it allows for the development of contingency plans and strategies to mitigate their potential impact. Furthermore, an understanding of possible threats aids in minimising vulnerabilities that could be exploited by competitors.

Taking our example of Eco Brew, a potential threat could be the emergence of new coffee shops in the vicinity, increasing competition. Another threat could be the rise in prices of organic coffee beans, potentially impacting the profitability of Eco Brew. Additionally, shifts in consumer preferences, like a trend towards tea-based beverages, could also pose a threat. Finally, regulatory changes, like increased taxes on imported coffee beans, could have a significant impact on the business. By identifying these threats, Eco Brew can work on strategies to minimise their potential impact.

To identify threats to a business, consider the following questions:

  • What obstacles does the business currently face in the market?

  • Are the competitors changing or becoming more competitive?

  • Are there any negative market or economic trends that could affect the business?

  • Are there upcoming regulatory changes that might impact the business?

  • Is there a risk associated with reliance on a few key suppliers or customers?

  • Are changes in technology threatening the position of the business?


Let's consider a SWOT analysis for Apple's iPhone.


  • Brand reputation: Apple has established a strong brand reputation globally, associated with quality, innovation, and design.

  • Innovative technology: iPhones are known for their innovative features and technology, such as the Face ID, high-quality camera systems, and the latest A-series chips.

  • Seamless ecosystem: Apple's integrated ecosystem with services like iMessage, iCloud, and the App Store, offers a seamless and unique user experience.

  • Customer loyalty: Apple has a loyal customer base, with many consumers continuing to choose iPhones over other brands.


  • High prices: iPhones are often more expensive than many other smartphones on the market, which may deter cost-conscious customers.

  • Dependence on iPhone: As of 2021, a significant portion of Apple's revenue comes from the iPhone, indicating a high dependence on a single product.

  • Limited customisation: Compared to Android, the iOS platform offers less customisation, which some users might find limiting.


  • 5G Technology: The increasing demand for 5G technology provides an opportunity for new iPhone models to capture market share.

  • Expansion in emerging markets: There are opportunities for growth in emerging markets like India and parts of Africa.

  • AR and VR: Advancements in Augmented Reality (AR) and Virtual Reality (VR) technologies present opportunities for future iPhone models.


  • Intense competition: The smartphone market is highly competitive, with competitors like Samsung.

  • Economic instability: Economic uncertainties and fluctuations in global exchange rates can impact iPhone sales.

  • Regulatory challenges: Apple faces regulatory challenges in various regions, which could affect iPhone sales.

Remember that a SWOT analysis is a snapshot at a particular point in time. Factors may change based on market conditions, technological advancements, regulatory changes, and other environmental influences.

From the SWOT analysis provided, Apple can use the insights to formulate strategic marketing decisions:

Leveraging Strengths: Apple can capitalise on its strong brand reputation and innovative technology to promote new iPhone models. Marketing campaigns could emphasise the unique features and the seamless ecosystem that sets the iPhone apart from its competitors. Apple's loyal customer base can be targeted with exclusive deals or early access to new products.

Addressing Weaknesses: Apple could explore ways to make iPhones more accessible to cost-conscious customers without compromising the brand's perceived value. This could include offering competitive trade-in programs or introducing a budget-friendly iPhone model. Additionally, Apple could look into allowing more customisation options for iOS to appeal to a broader audience without sacrificing the security and simplicity of its platform.

Seizing Opportunities: With the rise of 5G technology, Apple could highlight its 5G-compatible iPhones and how they leverage faster data speeds for improved performance. Emerging markets present opportunities for growth, so localised marketing strategies could be developed to increase brand presence and sales in these areas. Additionally, advancements in AR and VR can be incorporated into iPhone features, with marketing campaigns focusing on these cutting-edge technologies and their potential applications.

Mitigating Threats: To counter intense competition, Apple needs to continue investing in innovation to stay ahead and differentiate its offerings. It can also use targeted marketing to position its devices as superior in quality and experience. Economic instability and exchange rate fluctuations could be addressed by exploring cost optimisation strategies, possibly at the supply chain level, to avoid major price hikes for consumers. Lastly, due to regulatory challenges, Apple needs to ensure compliance in all markets while also using its influence and legal means to shape regulations favourably.

By taking into account all these factors from the SWOT analysis, Apple can develop more effective marketing strategies that leverage its strengths, overcome its weaknesses, exploit opportunities, and manage threats.

Wrapping up

A SWOT analysis is an essential tool for any business, offering valuable insights into its internal strengths and weaknesses, as well as external opportunities and threats.

Applied strategically, as shown in the case of Apple's iPhone, it can guide key marketing decisions, providing a clearer path towards growth and success. By continuously monitoring and adjusting to these four aspects, businesses can stay ahead of the curve, navigate challenges effectively, and capitalise on opportunities in the ever-evolving marketplace.

Take SWOT one step further with a TOWS matrix.

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