Marketing

3Developing Strategies Based on Internal and External Factors

As it is, the SWOT analysis can only describe your company's current situation. To help in formulating plans and strategies, this analysis was improved into what is called Cross‐SWOT analysis. In Cross‐SWOT analysis, you organize the information on your opportunities, threats, strengths, and weaknesses into a matrix. By combining internal and external factors, this tool gives you a more strategic view that can help you plan your next steps.

For example, if you see a new opportunity where your strengths lie, you should develop a more aggressive and offensive plan. In addition, if you see changes in your external environment that could become a threat to your strengths, then you will want to take strategies to differentiate your product to avoid this risk. On the other side of all these, if you see a new opportunity that lies alongside your weaknesses, then you will want to find ways to conquer these weaknesses. If you see changes that can be a threat to your weaknesses, you will then want to think of strategies for retreating.

In Tamaya's case, they use carefully selected natural ingredients from Hokkaido and their manju is made by a skilled craftsperson. Because of this, they can appeal to customers with concerns about food safety. Compared to their rival, which is a much younger business, their shop has been around since the Meiji era. They should then be able to use their authenticity to appeal to consumers.