What Is A SWOT Analysis
What Is A SWOT Analysis
SWOT Analysis is a tool that can help you to analyze what your company does
best now, and to devise a successful strategy for the future. SWOT can also
uncover areas of the business that are holding you back, or that your
competitors could exploit if you don't protect yourself.
A SWOT analysis examines both internal and external factors – that is, what's
going on inside and outside your organization. So some of these factors will be
within your control and some will not. In either case, the wisest action you can
take in response will become clearer once you've discovered, recorded and
analyzed as many factors as you can.
In this article, video and infographic, we explore how to carry out a SWOT
analysis, and how to put your findings into action. We also include a worked
example and a template to help you get started on a SWOT analysis in your own
workplace.
SWOT analysis can help you to challenge risky assumptions and to uncover
dangerous blindspots about your organization's performance. If you use it
carefully and collaboratively, it can deliver new insights on where your business
currently is, and help you to develop exactly the right strategy for any situation.
For example, you may be well aware of some of your organization's strengths,
but until you record them alongside weaknesses and threats you might not
realize how unreliable those strengths actually are.
Equally, you likely have reasonable concerns about some of your business
weaknesses but, by going through the analysis systematically, you could find an
opportunity, previously overlooked, that could more than compensate.
SWOT analysis involves making lists – but so much more, too! When you begin
to write one list (say, Strengths), the thought process and research that you'll go
through will prompt ideas for the other lists (Weaknesses, Opportunities or
Threats). And if you compare these lists side by side, you will likely notice
connections and contradictions, which you'll want to highlight and explore.
You'll find yourself moving back and forth between your lists frequently. So,
make the task easier and more effective by arranging your four lists together in
one view.
A SWOT matrix is a 2x2 grid, with one square for each of the four aspects of
SWOT. (Figure 1 shows what it should look like.) Each section is headed by
some questions to get your thinking started.
When conducting your SWOT analysis, you can either draw your own matrix, or
use our free downloadable template .