MKTG 321 Principles of Marketing (Fall 2025)

SWOT

What is it? A SWOT looks at your strengths and weaknesses, and the opportunities and threats your business faces. SWOT can help your company face its greatest challenges and find its most promising new markets.

• Strengths (Internal) are the areas where the organization has particular skills and resources that would allow it to pursue goals effectively. For instance, innovative and collaborative organizational cultures are strengths of Apple and Google.
• Weaknesses (Internal) are areas where the organization is lacking resources and would be prevented from pursuing some goals. For example, when consumers demanded smaller, fuel-efficient cars, many American manufacturers lacked the designs and equipment to make these cars.
• Opportunities (External) are conditions that are favorable to the organization and would facilitate its efforts to achieve its goals. Building on the earlier example, Japanese automakers saw an opportunity in the American demand for smaller cars to increase their market share.
• Threats (External) are conditions that would prevent the organization from achieving its goals. Many businesses, for instance, are concerned about the threat posed by China’s competitive growing manufacturing capability.

SWOT Purpose

• Explore possibilities for new efforts or solutions to problems.
• Make decisions about the best path for your initiative. Identifying your opportunities for success in context of threats to success can clarify directions and choices.
• Determine where change is possible. If you are at a juncture or turning point, an inventory of your strengths and weaknesses can reveal priorities as well as possibilities.
• Adjust and refine plans mid-course. A new opportunity might open wider avenues, while a new threat could close a path that once existed

Environmental Analysis

PESTEL

What is a PESTEL analysis? A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces facing an organisation. The letters stand for Political, Economic, Social, Technological, Environmental and Legal. Depending on the organisation, it can be reduced to PEST or some areas can be added (e.g. Ethical).

Political Factors: These determine the extent to which government and government policy may impact on an organisation or a specific industry. This would include political policy and stability as well as trade, fiscal and taxation policies too.

Economic Factors: These factors impact on the economy and its performance, which in turn directly impacts on the organisation and its profitability. Factors include interest rates, employment or unemployment rates, raw material costs and foreign exchange rates.

Social Factors: These factors focus on the social environment and identify emerging trends. This helps a marketer to further understand their customers’ needs and wants. Factors include changing family demographics, education levels, cultural trends, attitude changes and changes in lifestyles.

Technological Factors: These factors consider the rate of technological innovation and development that could affect a market or industry. Factors could include changes in digital or mobile technology, automation, research and development. There is often a tendency to focus on developments only in digital technology, but consideration must also be given to new methods of distribution, manufacturing and also logistics.

Environmental Factors: These factors relate to the influence of the surrounding environment and the impact of ecological aspects. With the rise in importance of CSR (Corporate Sustainability Responsibility), this element is becoming more important. Factors include climate, recycling procedures, carbon footprint, waste disposal and sustainability

Legal Factors: An organisation must understand what is legal and allowed within the territories they operate in. They also must be aware of any change in legislation and the impact this may have on business operations. Factors include employment legislation, consumer law, healthy and safety, international as well as trade regulation and restrictions.

Political factors do cross over with legal factors; however, the key difference is that political factors are led by government policy, whereas legal factors must be complied with.

Competitor Data

• Financial data (if a public company)
• Product or service details
• Geographic scope
• Strategic intent
• Strategies followed
• Core competence and competitive advantage

Competitor Comparisons

• Revenues and profits
• Market share
• Product or service characteristics
• Critical success factors
• Degree of diversification 

Competitor Conclusions

• How does the company stack up with its competitors?
• Does it have a competitive edge?
• What can it do better than the competition?
• Where might it be vulnerable?
• Which competitor does it really have to watch out for?

Sources:

• https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/
• https://libguides.libraries.wsu.edu/c.php?g=294263&p=4358409
• https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/common-frameworks-for-situational-analysis/#:~:text=Five%20key%20components%20of%20the,a%20specific%20organization%20or%20business.
• https://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/swot-analysis/main