According to John L. Fortenberry, Jr. “Progressive healthcare marketers routinely engage in the systematic evaluation of their product offerings and associated target markets”. For assistance in this evaluative process, marketers often rely on a tool known as the SWOT analysis.
The SWOT analysis involves the identification of institutional strengths, weaknesses, opportunities, and threats. Formulating a SWOT analysis requires that marketers (1) construct the SWOT diagram, as illustrated below, (2) determine the particular product or service that will be evaluated, and (3) identify associated strengths, weaknesses, opportunities, and threats. The resulting diagram is then analyzed to gain product insights.
Strengths are positive product and product-related attributes that facilitate exchange. Outstanding quality, excellent brand identity, rising market share, excellent marketing management, world-class customer satisfaction are all examples of product and product-related strengths.
Weaknesses are negative product and product-related attributes that adversely impact exchange. Weaknesses might include poor customer service, inferior product quality, outdated technology, declining market share, and so on.
Opportunities are external events and circumstances that have the potential to positively impact products. Opportunities might include newly discovered product uses, substantial market growth, and so on.
Threats are external events and circumstances that have the potential to negatively impact products. Threats might include new competitors, market attrition, changing customer preferences, competitors equipped with superior technologies and so on.