According to Harvard Business Review, one significant drawback of a SWOT analysis is that it can oversimplify the type and extent of strengths, weaknesses, opportunities and threats facing the company. This is often because it is a secondary research exercise, with the results created from curated internal thinking, without firm evidence to support.
SWOT analysis is used in marketing planning particularly as a basis for strategic and tactical planning but is often boiled down to a one-hour team meeting with post-it notes. And when implemented like this can ignore some of the strengths and weaknesses of other companies that could affect your business.
Other marketing models we’re discussing on the blog – and that are covered in all our CIM qualifications and modular and membership packages – such as Porters Five Forces are where you’d look for this.
Setting a strategy on ambiguous and unqualified insights is a dangerous approach to any organisation.