The relative importance of decision making policy in a certain company may well predict the overall capacity of the business to perform well in the market. In line with this aspect, there are corporate philosophies that were created to help in the process of defining a better way to address the need for development and sustainability.
The creation of SWOT and STEEP are just some of the basic domains in aiding the strategic planning process in a certain business.The existence of these two particular philosophies greatly influence the planning methods employed in a company.
However, some companies prefer one compared to the other.
This brings a notion whether the two perspectives provide the same advantages in properly addressing the needs in strategic planning. A relative comparison may be done to inhibit the appropriate impression whether SWOT is much better than STEEP or vice versa. This will at least address the considerations of businesses if they actually provide the same capacity of benefits in policy making attributes.
SWOT means (strengths, weaknesses, opportunities, threats) while STEEP is (societal, technological, ecological, political). At this very sense, the relative goal of SWOT remains in the overall internal inflictions for the company.
The business can at least formulate a development strategy by identifying the relative factors included in it. The Strengths allow the industry to identify its optimistic value of operations; Weaknesses identify the common errors done in the business planning which can be avoided; Opportunities offers the process of identification of the positive acquisition of ideas in the environment while Threats give a plausible notion for external factors that may inflict harm to the business processes.
As a matter of fact, the SWOT analysis gives constructive information which could help in matching and complimenting the firm’s resources and capabilities to the competitive environment in which it operates (QuickMBA, 1999).On the other hand, STEEP rather identifies almost all the possible external sources of change in the internal business planning strategy. This includes the identification of various factors that only incorporates the influence of the outside world to the organizations processes. The company becomes a passive structure in the dynamic of marketing since it can only identify the actual relative events that currently induce the social structure.
The Social and Political patterns become the predictor factor in doing marketing strategy, increasing the risk of trending the business operation to what the events demand. This could be a harmful step especially to the market segments where other preferences may be at existence.
Moreover, Technological and Ecological factors erase the need for the company to explore other alternatives since these two factors can readily suffice the needs of a business but only in a short term approach.There are various ways that can be considered in creating the most appropriate marketing strategy. However, the organization should first identify what market segments it wishes to conduct its business operations. In any case, the SWOT remains at a more advantage state compared to STEEP because the change and operation process starts within the company itself and not external factor driven, enriching further what aspects the business is expert at.