Holistic assessment
SWOT analysis covers both internal (strengths and weaknesses) and external (opportunities and threats) factors, offering a comprehensive view of an organisation’s environment.
SWOT analysis is a strategic planning tool used to identify and evaluate an organization’s internal strengths and weaknesses, as well as external opportunities and threats. The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This framework provides a structured way to assess a company’s current position, inform decision-making, and guide strategy development.
SWOT analysis covers both internal (strengths and weaknesses) and external (opportunities and threats) factors, offering a comprehensive view of an organisation’s environment.
It helps organizations understand what they do well, where they need improvement, what external trends they can exploit, and what risks they face.
SWOT can be used for organizations, projects, products, or even personal development.
Results are often presented in a four-quadrant matrix for easy comparison and prioritization.
A SWOT analysis matters because it gives businesses a clear, structured view of their strengths, weaknesses, opportunities, and threats, enabling better strategic planning, informed decision-making, and improved agility to respond to changes and challenges in the market.
Include representatives from different departments or stakeholders for a well-rounded perspective.
Focus on internal factors such as resources, capabilities, and processes.
Examine external factors like market trends, competition, and regulatory changes.
Rank the most critical factors and develop strategies that align with your findings.
Assign responsibilities, set timelines, and regularly review and update the analysis to stay relevant.
Guides long-term and short-term business strategies
Identifies unique strengths to emphasize in the marketplace.
Highlights threats and weaknesses to address proactively
Directs focus and investment to high-impact areas
Case study: Small retailer SWOT analysis
Strengths: Personalized customer service, unique product offerings
Weaknesses: Limited marketing budget, outdated technology
Opportunities: E-commerce expansion, local partnerships
Threats: Intense competition, changing consumer preferences