In this article, we will teach you a different way of making strategic plans for your business, a widely used tool for those who have already created a SWOT matrix, and that will help you define the strategic actions that will lead you to success. We present you the CAME Analysis, what is it, and how to apply it in your business. All the details are here. Do not miss it!
What Is The CAME Analysis?
The CAME analysis is a strategic business tool that works as a complement to the SWOT analysis ( the analysis of strengths, weaknesses, opportunities, and threats, what some call the SWOT analysis ) that provides the essential information to establish the guidelines of the aspects found. after performing the SWOT matrix.
After identifying the context of the organization using the SWOT analysis, a series of strategies are developed in the CAME Analysis, always working with the information collected from the SWOT analysis. Thanks to these analyses, correct decisions can be made for the business, proposing a perfect strategic design.
But, where do the initials CAME come from? The CAME analysis is the result of joining the acronyms of:
- Correct (correct)
- face (adapt)
- Maintain
- Explode (explore)
SWOT and CAME analyses are widely used, especially in strategic planning such as business plans, and the definition of programs and projects.
How To Do A CAME Analysis?
Now that we know what a CAME analysis is, let’s see the steps to follow:
1# Determine The Business Objectives
The first and most important thing to start the journey is to set the objectives of the company, and they must be clear and concise. In this way, we will know where to aim the entire business strategy.
Establishing a strategy that tells us what are the general objectives that we want to achieve in our organization is important because it will help us prioritize the actions to be taken in the following steps.
We recommend using SMART goals.
2# Carry Out A SWOT Analysis
The second step is the DAFO or FODA analysis, to understand the situation in which the business is located, in this part the strengths, weaknesses, opportunities, and threats of the company will be analyzed. Find out more about the SWOT analysis. I encourage you to read more about this blog here: AI In Digital Marketing: What Can Chat GPT Do For You?
3# Select Actions
Once the SWOT analysis is finished, it is essential to select the most important actions and implement them according to their relevance, impact on the business, and probability of their occurrence.
Types Of Actions Of The CAME Analysis
As we have explained to you before, the SWOT analysis is implemented to know the situation of the business, an analysis that can be used in almost any situation and that serves to have an overview of what is happening in the business.
When we obtain all this, it is time to apply the acronyms: Correct, Confront, Maintain and Exploit, the guidelines for acting in each of the aspects of the SWOT matrix. What does each action consist of?
- Correct: It means eliminating the weaknesses or, at least, taking the necessary measures that are in our power to avoid having to face them and that they do not influence the development of the business plan again.
- Face threats: Prevent the same threats from going one step further, becoming weaknesses.
- Maintain strengths: Just as we eliminate threats, we will maintain strengths by ensuring that everything positive that can influence the business stays with us. As a result, we will have a competitive advantage.
- Exploit opportunities: It is about the previous point in the sense that it allows you to create strategies and plan actions to turn them into strengths.
The 4 Strategies Of The CAME Analysis
If we take into account everything read so far and combine the internal and external elements of the SWOT analysis, we will have the 4 strategies to carry out the CAME analysis as a result:
Offensive Strategy
This strategy, also known as attack and market positioning, is about uniting the strengths and opportunities that can be used to exploit the same market opportunities in which the company is located, and thus differentiate itself from its competition. The key to this is to focus on strengths while exploiting new opportunities.
It usually occurs in young companies or startups with innovative services.
Defensive Strategy
This strategy, typical of large companies consolidated in the market, arises from joining the strengths and threats that the company is facing. It is neither more nor less than facing threats by making use of the strengths of the business to make it stronger.
Retargeting Strategy
For the reorientation of the business, it is essential to unite the weaknesses and opportunities to maximize them in the same market. In this case, this strategy is designed to exploit the opportunities in case of not being able to correct the weaknesses.
Survival Strategy
Finally, the survival strategy tries to find out what the business weaknesses are and how they can be corrected to face the threats of the market and thus prevent the weaknesses from growing by reducing the negative aspects that harm the business.
Differences Between SWOT And CAME
Now, let us see the difference between SWOT analysis and CAME analysis:
- The SWOT or SWOT matrix is an initial analysis where we study the Strengths,
- Weaknesses, Opportunities, and Threats of a Company.
- The CAME matrix is an analysis that allows us to study the future actions that we will carry out to:
- Correct weaknesses.
- To face the threats.
- Maintain strengths.
- Exploit new opportunities.
So the SWOT analysis and the CAME are closely related since one is the starting point of the business process analysis (SWOT) and they are the future actions that we must take to achieve the objectives of the company.
Frequently Asked Questions (FAQ)
How Do You Explain SWOT Analysis?
The acronym SWOT is made up of the English words Strengths, Weaknesses, Opportunities, and Threats. With the SWOT analysis, you analyze the strengths and weaknesses of your company ( company analysis / internal analysis/strengths and weaknesses analysis) as well as the opportunities and risks of your company’s environment (environmental analysis / external analysis/opportunities and risks analysis).
What Is The Difference Between SWOT AQnd TOWS Analysis?
Widely used in strategic research and competitive analysis, SWOT analysis has become an important analytical tool for strategic management and competitive intelligence. The intuitive and user-friendly analysis is an important advantage. Even without precise data support and more specialized analysis tools, convincing conclusions can be drawn.
As a result, many organizations use SWOT analysis to determine their organization’s strengths and weaknesses. SWOT analysis can be interesting, but what should you do with the information you get? This is where the TOWS matrix becomes a useful tool. It’s a simple and effective way to gather ideas and develop specific strategies to tackle the first SWOT results.
What Is The TOWS Matrix And How Is It Used?
The TOWS Matrix is an acronym for Threats, Opportunities, Weaknesses, and Strengths. The matrix is a variation on the SWOT analysis, and attempts to address criticisms of the SWOT analysis for its inability to show relationships between the different categories.
Why Is It Called Tows?
SWOT analysis is a powerful tool used to evaluate a business from a marketing and administrative perspective. It stands for Strengths, Weaknesses, Opportunities, and Threats. However, many people mistakenly believe that the TOWS matrix is simply a rearrangement of the letters in SWOT. In reality, the TOWS matrix is a strategic planning tool that takes a proactive approach to address the issues identified in a SWOT analysis.
By analyzing the external opportunities and threats and internal strengths and weaknesses, businesses can develop effective strategies to capitalize on their strengths, minimize their weaknesses, and navigate the ever-changing business landscape.
Learn More About What Is And How To Do A CAME Analysis? From businessjohn
