What are the two essential facets to consider when examining external data for SWOT analysis?

When conducting a SWOT analysis, particularly focusing on external data, it is crucial to analyze both the industry and competitors. The industry provides context regarding the overall market conditions, key players, and market trends influencing business operations. Understanding the dynamics within the industry helps identify opportunities (such as emerging trends) and threats (like competitive pressures).

Meanwhile, analyzing competitors allows a company to understand its position within the industry relative to others. It provides insights into competitor strategies, strengths, and weaknesses, which can uncover opportunities for differentiation or potential risks from competitor actions.

Together, these two facets help businesses construct a comprehensive view of their external environment, making it easier to strategize effectively based on market dynamics and competitive landscape. This approach provides a foundation for recognizing potential areas for growth as well as challenges that may arise, which is essential for informed decision-making in marketing practices.