SWOT Analysis
A SWOT Analysis is a structured framework for evaluating a strategy, project, product, or organisation by examining four dimensions: Strength, Weaknesses, Threats and Opportunities
About SWOT Analysis
A SWOT analysis is a structured way to evaluate a strategy, project, product or organisation by examining four dimensions: Strengths, Weaknesses, Opportunities and Threats. It is one of the most widely used planning tools because it is simple and applies to almost any situation.
It works by separating what is inside your control from what is not, and what helps from what harms. That gives a balanced picture of where you stand and a sound starting point for deciding what to do next.
At a glance
- Category
- Strategy
How it is structured
Strengths and weaknesses are internal: things about the organisation itself that help or hold it back, such as skills, resources, reputation or processes. Opportunities and threats are external: conditions outside the organisation that could help or harm it, such as market trends, competitors or regulation.
The four areas are often drawn as a two-by-two matrix, with internal against external on one axis and helpful against harmful on the other. Laid out this way, strengths can be lined up against opportunities to find growth options, and weaknesses against threats to find the risks that most need attention. The analysis is most useful when the findings are then turned into priorities.
Use cases
Strategic planning
Take stock of the current position before setting goals and choosing a direction.
Evaluating a project or product
Assess an initiative's prospects before committing resources.
Competitor and market review
Compare your position with alternatives and identify where to focus.
How to use it
Tips and common mistakes
- Be specific. Good customer service is vague; a named result or measure is useful.
- Involve people from different parts of the organisation so the lists are not one person's view.
- Do not stop at the lists. A SWOT is only valuable if it leads to decisions.
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