The first step in creating a marketing plan is to outline your marketing objective. When outlining objectives, it is important to know your company’s current competitive position. The use of a SWOT Analysis is an effective way to identity your company’s current competitive position. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Keep in mind; strengths and weakness are internal forces while opportunities and threats are external forces.
Western Automotive – a made up company for this post – is a small car dealership in the Midwest. They have been in business ten years, have a good location, and a well known service department. Western Automotive sells mostly trucks and larger SUVs. However, they have just begun selling a smaller SUV. The smaller SUV is very safe, stylish – but not flashy, affordable and received a fairly good mile per gallon (MPG) rating.