Be Careful with SWOT Analysis. Issues and Risks of SWOT

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SWOT Analysis > Forum > Be Careful with SWOT Analysis. Issues and Risks of SWOT

Be Careful with SWOT Analysis. Issues and Risks of SWOT
Bernhard Keim, Business Consultant, Germany, Premium Member
I am not that happy with SWOT Analysis. My issue does not concern the tool itself, but the way it is often used. People like to make some statements with it, but the list in each of its quadrants can be endless. Everything is true, but what does really matter from all the points listed? So be careful with cherry picking (giving selective attention to particular things) to draw conclusions from a SWOT-Analysis. Here's an example of what I mean. Let's think about the situation of a horse shoe manufacturer 110 years ago:
  • Strengths: how did it help you to be the best horse shoe manufacturer?
  • Weaknesses: did it make a difference for your future, that your marketing was weak?
  • Opportunities: there were a lot of competitors you could buy for little money.
  • Threats: there are automobiles coming up, but how can these loud and unreliable vehicles affect the business?
If you had been the boss of such a company: what might your reactio (...) Read more? Sign up for free
 

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