Scribd
Upload
52 views

What Is A SWOT Analysis?

A SWOT analysis is a technique used to assess the strengths, weaknesses, opportunities, and threats involved in a project or business venture. It involves creating a 2x2 grid to list internal factors (strengths and weaknesses) and external factors (opportunities and threats). A SWOT analysis can help an organization develop a strategy by considering its unique advantages, its limitations, relevant trends, and potential hazards.

Uploaded by

Raimound Marcuz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
52 views

What Is A SWOT Analysis?

A SWOT analysis is a technique used to assess the strengths, weaknesses, opportunities, and threats involved in a project or business venture. It involves creating a 2x2 grid to list internal factors (strengths and weaknesses) and external factors (opportunities and threats). A SWOT analysis can help an organization develop a strategy by considering its unique advantages, its limitations, relevant trends, and potential hazards.

Uploaded by

Raimound Marcuz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

SWOT ANALYSIS

What Is a SWOT Analysis?


SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
Analysis is a technique for assessing these four aspects of your business.
You can use SWOT Analysis to make the most of what you've got, to your
organization's best advantage. And you can reduce the chances of failure, by
understanding what you're lacking, and eliminating hazards that would otherwise catch
you unawares.
Better still, you can start to craft a strategy that distinguishes you from your competitors,
and so compete successfully in your market.

How to Do a SWOT Analysis


First, draw up a SWOT Analysis matrix, or use our free downloadable template. This is
a 2x2 grid, with one square for each of the four aspects of SWOT. Figure 1 shows what
it should look like (click on the image to see a larger version).
Figure 1. A SWOT Analysis Matrix.
 
You can approach a SWOT Analysis in two ways: to get people together to "kick off"
strategy formulation informally, or as a more sophisticated and formal tool.
In either case, gather a team from a range of functions and levels in your organization.
Use Brainstorming  techniques to build a list of ideas about where your organization
currently stands. Every time you identify a Strength, Weakness, Opportunity, or Threat,
write it down in the relevant part of the grid.
To clarify which section an idea belongs to, it may be useful to think of Strengths and
Weaknesses as internal factors – that is, to do with the organization, its assets,
processes, and people. Think of Opportunities and Threats as external factors, arising
from your market, your competition, and the wider economy.
Let's look at each area in more detail and consider what questions you could ask as part
of your analysis.

Strengths
Strengths are things that your organization does particularly well, or in a way that
distinguishes you from your competitors. Think about the advantages your organization
has over other organizations. These might be the motivation of your staff, access to
certain materials, or a strong set of manufacturing processes.
Your strengths are an integral part of your organization, so think about what makes it
"tick." What do you do better than anyone else? What values drive your business? What
unique or lowest-cost resources can you draw upon that others can't? Identify and
analyze your organization's Unique Selling Proposition  (USP), and add this to the
Strengths section.
Then turn your perspective around and ask yourself what your competitors might see as
your strengths. What factors mean that you get the sale ahead of them?
Remember, any aspect of your organization is only a strength if it brings you a clear
advantage. For example, if all of your competitors provide high-quality products, then a
high-quality production process is not a strength in your market: it's a necessity.

Weaknesses
Now it's time to consider your organization's weaknesses. Be honest! A SWOT Analysis
will only be valuable if you gather all the information you need. So, it's best to be
realistic now, and face any unpleasant truths as soon as possible.
Weaknesses, like strengths, are inherent features of your organization, so focus on your
people, resources, systems, and procedures. Think about what you could improve, and
the sorts of practices you should avoid.
Once again, imagine (or find out) how other people in your market see you. Do they
notice weaknesses that you tend to be blind to? Take time to examine how and why
your competitors are doing better than you. What are you lacking?

Opportunities
Opportunities are openings or chances for something positive to happen, but you'll need
to claim them for yourself!
They usually arise from situations outside your organization, and require an eye to what
might happen in the future. They might arise as developments in the market you serve,
or in the technology you use. Being able to spot and exploit opportunities can make a
huge difference to your organization's ability to compete and take the lead in your
market.
Think about good opportunities you can spot immediately. These don't need to be
game-changers: even small advantages can increase your organization's
competitiveness. What interesting market trends are you aware of, large or small, which
could have an impact?
You should also watch out for changes in government policy related to your field. And
changes in social patterns, population profiles, and lifestyles can all throw up interesting
opportunities.

Threats
Threats include anything that can negatively affect your business from the outside, such
as supply chain problems, shifts in market requirements, or a shortage of recruits. It's
vital to anticipate threats and to take action against them before you become a victim of
them and your growth stalls.
Think about the obstacles you face in getting your product to market and selling. You
may notice that quality standards or specifications for your products are changing, and
that you'll need to change those products if you're to stay in the lead. Evolving
technology is an ever-present threat, as well as an opportunity!
Always consider what your competitors are doing, and whether you should be changing
your organization's emphasis to meet the challenge. But remember that what they're
doing might not be the right thing for you to do, and avoid copying them without knowing
how it will improve your position.
Be sure to explore whether your organization is especially exposed to external
challenges. Do you have bad debt or cash-flow problems, for example, that could make
you vulnerable to even small changes in your market? This is the kind of threat that can
seriously damage your business, so be alert.
A SWOT Analysis Example

Imagine this scenario: Alice is the CEO of a small start-up consultancy and wants a
clear picture of its current situation, to decide on a future strategy for growth. She
gathers her team, and draws up the SWOT Analysis shown in Figure 2 (click on the
image to see a larger version).

Figure 2. A Completed SWOT Analysis.


 

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy