SWOT Analysis

Knowledge Center

   

Identifying Strengths, Weaknesses, Opportunities and Threats.

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print

SWOT Analysis

What is a SWOT analysis? Description

A SWOT analysis is a tool, used in management and strategy formulation. It can help to identify the Strengths, Weaknesses, Opportunities and Threats of a particular company. 


Strengths and weaknesses are internal factors that create value or destroy value. They can include assets, skills, or resources that a company has at its disposal, compared to its competitors. They can be measured using internal assessments or external benchmarking.


Opportunities and threats are external factors that create value or destroy value. A company cannot control them. But they emerge from either the competitive dynamics of the industry/market or from demographic, economic, political, technical, social, legal or cultural factors (PEST).


Typical examples of factors in a SWOT Analysis diagram:


Strengths

  • Specialist marketing expertise
  • Exclusive access to natural resources
  • Patents
  • New, innovative product or service
  • Location of your business
  • Cost advantage through proprietary know-how
  • Quality processes and procedures
  • Strong brand or reputation

Weaknesses

  • Lack of marketing expertise
  • Undifferentiated products and service (i.e. in relation to your competitors)
  • Location of your company
  • Competitors have superior access to distribution channels
  • Poor quality of goods or services
  • Damaged reputation

Opportunities

  • Developing market (China, the Internet)
  • Mergers, joint ventures or strategic alliances
  • Moving into new attractive market segments
  • A new international market
  • Loosening of regulations
  • Removal of international trade barriers
  • A market that is led by a weak competitor

Threats

  • A new competitor in your own home market
  • Price war
  • Competitor has a new, innovative substitute product or service
  • New regulations
  • Increased trade barriers
  • A potential new taxation on your product or service

Any organization must try to create a fit with its external environment. The SWOT diagram is a very good tool for analyzing the (internal) strengths and weaknesses of a corporation and the (external) opportunities and threats. However, this analysis is just the first step. To really create the fit with the external environment is often the most difficult work.


Confrontation Matrix

A tool to combine the internal factors with the external factors is the Confrontation Matrix.


 

Opportunities

Threats

Strengths

 

Offensive

make the most of these


Defensive

restore strengths

Weaknesses

 

Strenghten

watch competition closely


Survive

turn around


Often in reality the two columns of the SWOT diagram are pointing in opposite directions. Strategists must still deal with the paradox of creating alignment. This can be done via Outside-in strategy formulation (market-driven strategy) or Inside-out strategy formulation (resource-driven).


Note: you can also apply a SWOT analysis to competitors, often providing interesting new perspectives.


SWOT Analysis Forum
  Be Careful with SWOT Analysis. Risks
I am not that happy with SWOT Analysis. My issue d...
     
 
  Using SWOT Analysis for Supplier Audits
This would be a good tool to use during the evalua...
     
 
  Involve Stakeholders in SWOT Analysis
Usually SWOT analysis is used by middle or higher ...
     
 
  Be Careful with Viewing Industry Opportunities as Company Opportunities
Managers are advised to guard against considering ...
     
 
  SWOT Analysis as a Brainstorming Technique
SWOT analysis can be used in each organization. It...
     
 
  WHEN to do a SWOT Analysis?
At what stage should an organization develop a SWO...
     
 
  Internal Opportunities and Threats
What about the opportunities and threats that exis...
     
 
  SWOT Analysis Strength
I think companies strategies on which company is w...
     
 
  SWOT Analysis for British Airways and Ryan Air
Would anybody be able to suggest some key points t...
     
 
  Combine SWOT Analysis with 5 Ps
I always do a SWOT analysis against the 5 Ps. Peop...
     
 
  Design Shool Theory vs. SWOT
Whats the difference between a SWOT analysis and t...
     
 
  Turning Competitor's Weaknesses Into Opportunities
How can I turn my rival's internal weaknesses i...
     
 
  SWOT and Strategic Marketing Process
How does the SWOT analysis relate to the strategic...
     
 
  SWOT Analysis + Weightage
SWOT analysis is a basic tool for any marketing ma...
     
 
  Well suited for Crisis too
In this moment of crisis, I never see a better too...
     
 
  Swot Analysis Well Suited as First Step
Swot becomes an effective tool for analysing compe...
     
 
  SWOC Analysis instead of SWOT Analysis
The "T" in SWOT can be changed to "C" for Challeng...
     
 
  Competetive Analysis with SWOT
Is only a SWOT Analysis enough for competitive ana...
     
 
  SWOT - Absolutely essential
This is the most important tool companies around t...
     
 

SWOT Analysis Special Interest Group


Special Interest Group

SWOT Analysis Education & Events


Find Trainings, Seminars and Events


Best Practices - SWOT Analysis Premium
  How to Proceed after the SWOT Analysis to the Strategy?
What should we do after the SWOT analysis. In othe...
     
 
  Combining SWOT with other Strategy Tools
It is my experience that the SWOT analysis as a st...
     
 
  Uses of SWOT analysis
A SWOT analysis is frequently used in an early sta...
     
 

Expert Tips - SWOT Analysis Premium
 

Steps of Typical SWOT Process

Here's a list of typical phases in a medium size <...
Usage (application): SWOT Analysis
 
 
 

SWOT Strengths and VRIO test

In order to analyze true, valid strengths i...
Usage (application): Thoroughly Analyzing Strengths
 
 
 

SWOT Dos and Donts

- Do create an environment that stimulates active ...
Usage (application): Successful Implementation
 
 
 

10 SWOT Golden Rules

1. Precisely specify all factors to be listed. Avo...
Usage (application): SWOT Implementation, SWOT Best Practices
 
 
 

SWOT Applications and Aims

The SWOT Analysis can be generally carried out on:...
Usage (application): SWOT Insight
 
 
 

Critics on SWOT Analysis

Although over the last 40 years SWOT Analysis has ...
Usage (application): SWOT PItfalls, Improve your Usage of SWOT
 
 
 

How to Attribute Scores to All SWOT Factors

A typical best practice in implementing a SWOT Ana...
Usage (application): SWOT Analysis Implementation
 
 
 

SWOT Disadvantages

Here are the main disadvantages of using a SWOT An...
Usage (application): SWOT in Strategic Planning
 
 
 

SWOT Advantages

Here following are the main advantages of using a ...
Usage (application): SWOT in Strategic Planning
 
 
 

Questions to Analyze the External Environment

When performing a SWOT Analysis, a common practice...
Usage (application): External Environment Analysis
 
 
 

History of SWOT. Early Strategic Planning

The origin of the SWOT Analysis has been credited ...
Usage (application): Background SWOT Analysis
 
 

Resources - SWOT Analysis Premium

Internal Analysis

Comprehensive presentation about the internal part...
Usage (application): Strategic Analysis
 

SWOT Analysis

Presentation by Shabbar Suterwala with some good g...
Usage (application): SWOT Analysis
 

SWOT Analysis with Example

Lecture about SWOT Analysis by Shashi includes sel...
Usage (application): Self SWOT Analysis
 

SWOT Analysis

Short presentation by Carlos A. Benito about SWOT ...
Usage (application): SWOT Analysis
 

Techniques for Entrepreneurial Thinking

This presentation elaborates on the different type...
Usage (application): Entrepreneurship, Critical Thinking, Creative Thinking, Lateral Thinking, Entrepreneurial Thinking
 

SWOT, SOFT Diagrams

Download and edit this 12manage PowerPoint graphic...
Usage (application): SWOT, SOFT Analysis
 

TOWS Matrix (Heinrich)

In-depth article by Prof. Klaus Weihrich introduci...
Usage (application): TOWS Analysis, SWOT Analysis
 
 

News about Swot Analysis


     
 

News about Swot Concept


     
 

Videos about Swot Analysis


     
 

Videos about Swot Concept


     
 

Presentations about Swot Analysis


     
 

Presentations about Swot Concept


     
 

Books about Swot Analysis


     
 

Books about Swot Concept


     
 

More about Swot Analysis


     
 

More about Swot Concept


     

Compare with: Core Competence  |  Parenting Advantage  |  Porter's five forces model  |  Outsourcing  |  Industry Change  |  OODA Loop  |  BCG Matrix  |  GE Matrix


Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Ethics & Responsibility  |  Finance & Investing  |  Marketing  |  Strategy


More Management Methods, Models and Theory

Special Interest Group Leader

You here


About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 21-11-2017. All names tm by their owners.