As an app marketer or executive, you understand mobile business fundamentals. Your app falls into a specific category and caters to a specific audience with a specific need.
You also understand that every business decision you make not only costs money, it costs users. And even when the right decisions are made, you’re still losing 90% of your daily active users in the first 30 days.
Building a financially viable mobile app is not easy. In fact, the success rate of creating a profitable mobile app is a mere 0.01%.1
The only way to navigate the mobile landscape successfully is to understand your business at its core — the good, the bad, and the ugly. You do that by conducting a SWOT analysis.
SWOT stands for strengths, weaknesses, opportunities, and threats
Growing up, you probably completed a number of strengths and weaknesses exercises to reflect on what you’re good at and what you can improve upon. That’s what SWOT analysis does for business planning.
Strengths and weaknesses require you to look internally — such as different assets, gaps, and resources that are available within your company. Whereas opportunities and threats are more external — looking at the competitors, market, and trends outside your company.
By identifying the internal and external factors across your company, you create a foundation for building and achieving your KPIs and business goals.
We’ve put together a handy SWOT analysis template to help you get started.
You can conduct several variations of a SWOT analysis depending on your industry. Here’s an example of a SWOT analysis done on a fictitious travel app:
While conducting a SWOT analysis doesn’t offer a direct solution to any one problem, it helps identify and analyze potential risks that impact your business. And, best of all, it’s free to do.
Some benefits of SWOT Analysis include:
SWOT Analysis is not a problem-solving tactic. It’s more suited for the planning process in conducting a business strategy. Its limitations and ambiguity can be a waste of resources for businesses that have already identified their market challenges.
Some drawbacks of SWOT Analysis include:
When done right, SWOT analysis can prove to be very beneficial by unmasking risks and opportunities that business leaders might not have caught otherwise.
When done poorly, teams might find that they’re not getting anywhere. Any time you put different departments in a room to brainstorm strategy, you risk muddying the waters with groupthink or analysis paralysis.
Here are a few tips on conducting SWOT analysis the right way:
Building a list of actionable takeaways is the most important step in conducting a SWOT analysis.
When a good SWOT analysis is conducted, there should be some crossovers. For example, some of the external opportunities you identified will most likely combat your internal weaknesses. And some identified weaknesses might even help you avoid external threats. This strategy, also known as TOWS analysis, works like this:
Creating connections across your SWOT analysis can help build out strategies to better your business. For example, if one of your weaknesses is users churning within the first 3 days of install, you might look for opportunities to improve your user onboarding experience.
For example, one of TravelBug’s weaknesses is having no environmentally-conscious initiatives, but they could also see this as an opportunity to grow their audience.
The Mobile Marketing Metrics that Matter to CMOs