What is the meaning of SWOT Analysis?

SWOT Analysis | PDF | Example and Free Templates

→ SWOT stands for Strengths, Weaknesses, Opportunities, and Threats in SWOT Analysis.

→  As our business grows, we need to face various challenges, obstacles, opportunities, and new projects.

→ This is the best tool for handling all challenges.

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What is SWOT Analysis?

→ The SWOT_Analysis is a strategic planning & decision-making management technique that is used to identify Strengths, Weaknesses, Opportunities, and Threats.

→ This technique is widely used for any company, organization, business, product, project planning, marketing, development, market research, etc.

→ Strengths are characteristics of the business (or an organization) that give it a benefit over others.

→ Weaknesses are characteristics of the business (or an organization) that give drawbacks as compared to others.

→ Opportunities are the elements in the environment (or we can say external factors) that the business could utilize for its benefit and also can give a competitive advantage as compared to others.

→ Threats are the external factors that could cause trouble for the business.

→ This tool is an excellent decision-making tool and it helps an organization achieve its goals.

→ It is a well-defined structure to evaluate the business's or an organization's competitive position as compared to competitors.

→ This tool is not only used for businesses or organizations but also used for development purposes such as personal development, employee development, business process management, etc...

→ This is a very effective tool for any Lean Six Sigma Project.

Lean Manufacturing and Management Presentation




The SWOT Analysis can be used for:

  • Workshop sessions 
  • Brainstorming meetings
  • Problem-solving
  • Product evaluation
  • Employee development
  • Strategic planning
  • Competitor evaluation
  • Personal development planning
  • Business Process Management
  • Marketing, etc


Internal and External Factors of SWOT Analysis

→ The main objective of the SWOT analysis is to identify the relevant internal and external factors that have a direct impact on the organization's goal.

→ We can divide the SWOT analysis into two main groups as mentioned below:

  • Internal factors - Strengths and Weaknesses
  • External factors - Opportunities and Threats

→ The internal factors may be strengths or weaknesses of the organization based on their impact on the organization's objectives.

→ The positive impact leads to strength and the negative impact leads to weakness.

→ The external factors may include macroeconomic indicators like technological change, legislation change, socio-cultural changes, political change, environmental change, changes in the marketplace, or change in competitive position, etc.

→ The above-mentioned al factors can be mentioned in the 2X2 matrix for easy tracking and working on that.


Guidelines for Conducting Good SWOT Analysis

→ We can refer to the below-mentioned guidelines.

→ Be realistic when performing a SWOT_Analysis.

→ Consider answers from the organizations and their stakeholder's points of view.

→ Distinguish between where the organization is today and where it could be in the future. 


How To Conduct a SWOT Analysis?

→ Refer to the below 10 Steps for conducting a SWOT_Analysis

  1. Preparation and Driving Forces of the Organization
  2. Note down Strengths, Weaknesses, Opportunities, and Threats
  3. Clarification of SWOTs for all Team Members
  4. Categorization into a sub-category
  5. Prioritization
  6. Desired State & Implications to Unit
  7. Strategy Development
  8. Strategy Selection
  9. Implementation of the right strategies
  10. Documentation

10 Steps of SWOT Analysis

→ Some other key points are mentioned below.

→ As many as possible people need to take part in this analysis.

→ We can also conduct this analysis for ourselves but it is better to include all cross-function team members into this for better effectiveness of this analysis.

→ One of the best methods is brainstorming for conducting this analysis.

→ We can use a flip chart, a whiteboard, or a piece of paper to note down all points, or we can store data in MS Excel, MS Word, or PowerPoint as a digital file.

→ We can also use different software or tools for this analysis as per the organization's need.


Example of SWOT Analysis

→ Refer to the below example for a better understanding of the SWOT_Analysis.

→ We will take one generic example that suits all organizations for this analysis.

→ The main four parts of this analysis are mentioned below.

  • Strengths
  • Weaknesses
  • Opportunities
  • Threats

→ Now we learn all the above points in detail.

SWOT Analysis Template

👉 Get a SWOT Analysis Template


1. Strengths

→ The Strengths mean that give us benefits over others.

→ Or we can understand what we are doing well

→ Also from other people's perspectives, we need to note down our strengths.

→ During this analysis we need to be realistic.

→ Refer to the most common strengths of any business or organization.

  • Overall Experience of an Organization
  • People Skill, Experience, Knowledge, and Data
  • Strong Financial Condition
  • Transparency
  • Reputation
  • Capabilities
  • Strong Relationships with all stakeholders
  • Lessons learned from past experiences
  • Low-cost Products and Services with Higher Quality
  • Simplicity
  • Strong brand recognition
  • Good relationships with customers
  • Flexibility
  • Collaborative Efforts
  • Quick responsiveness
  • Competitive Advantage
  • Intellectual property
  • Proprietary technologies
  • Granted patents
  • Our USP (Unique Selling Point)
  • Innovative aspects
  • Geographical Location

Examples of Strengths

→ For better understanding refer to the below example of strengths of the ABL Limited

→ Example: ABL Limited, a leading pharmaceutical company, points out its strengths as various patents granted, a highly talented R&D team, strong customer relationships, and a global distribution network, etc.


2. Weaknesses

→ Weaknesses give drawbacks to the business or an organization.

→ Also we can find weaknesses by asking a simple question as: 'What the organization can improve?' or 'What business should avoid?'

→ Also from other people's perspectives, we need to note down our weaknesses as well.

→ Refer to the below-mentioned most common Weaknesses of any business or organization.

  • Lack of Skill and Experience 
  • Financial Crisis
  • Poor Marketing 
  • Low Public Awareness 
  • Weak management
  • Communication Gap across the organization
  • Things our competitors do better than us
  • Resource Limitations
  • Unclear or Unidentified USP (Unique Selling Point)
  • Disagreement on Business Strategy
  • Unfocused on Goal
  • No online presence
  • Decision Making without any data or statistics

Examples of Weaknesses

→ For better understanding refer to the below example of weaknesses of the XYZ Limited

→ Example: XYZ Limited, a Manufacturing Company, points out its weaknesses as outdated machinery, high employee attrition, inconsistent product quality, higher breakdowns, higher manufacturing cost, not meeting on-time delivery, etc.


3. Opportunities

→ Opportunities are the external factors that the business could utilize for its benefit and also can give a competitive advantage as compared to others.

→ Organization has no control over the opportunities but businesses can take positive benefit of it.

→ Refer to the below-mentioned most common opportunities of any business.

  • Change in lifestyle
  • Market Developments
  • Influential connections
  • Good community response
  • Support from media
  • Expansion into new markets
  • Development of new products or services
  • Underserved markets for specific products
  • Less Competition
  • The emerging need for your products or services
  • Press/media coverage of our companion
  • New Government Policy that gives benefits to the business
  • New grants available

Examples of Opportunities

→ For better understanding refer to the below example of Opportunities for the XYZ Enterprise

→ Example: XYZ Enterprise, a retail company, identifies opportunities in online selling to various e-commerce platforms, and also found the increased consumer demand for their organic products, etc.


4. Threats

→ Threats are the external factors that could cause trouble for the business.

→ Maybe we can understand that the economic slowdown might create difficulty for business.

→ Organization has no control over the threats but need to protect themselves from all kind of threats to the business.

→ Refer to the below-mentioned most common threats to any business.

  • Rising raw material and labor cost
  • Security problems
  • Lack of interest at the customer level
  • Lack of access to an expansion of the market
  • Emerging competitors
  • Changing regulatory requirements
  • Negative social media coverage
  • Changing customer's perception
  • Competition from new entrants
  • Economic downturn
  • Political change
  • Environment change
  • Legislative change

Examples of Threats

→ For better understanding refer to the below example of Threats for the BBB Transport LTD

→ Example: BBB Transport LTD, a transport company, identifies threats such as rising fuel prices, increasing competition from other low-cost transporters, driver strikes, etc.


Tips for Conducting a Good SWOT Analysis

→ Before starting the SWOT Analysis team should be aligned with the organization's Goals and Objectives.

→ Collect all the information such as internal information, market research, and information related to employees, customers, suppliers, etc.

→ Prioritize the agenda points.

→ Be realistic and transparent.

→ Keep ready a structured framework for analysis and give training to all participants before starting the analysis.

Example of SWOT Analysis

Benefits of SWOT Analysis

→ Refer to the below benefits of this tool

→ It is very easy to scale and flexible

→ This model is very simple to use

→ This model has huge benefits with very low cost

→ We can improve our decision-making power with this tool

→ We can optimize our resources and better allocate for a specific task

→ With the help of this tool we can make a better business strategy

→ This tool is very helpful during ISO 9001 Certification.


Advantages of SWOT Analysis

→ This tool has many advantages, some of the advantages are mentioned below.

→ This tool is very easy to understand.

→ It is very flexible for use, we can use this tool for an individual person, for a team, for a business unit, for a division, etc...

→ With the help of this tool we can identify strengths, weaknesses, opportunities, and threats of any business.

→ We can improve our communication at the personal as well as organizational levels with this tool.


Disadvantages of SWOT Analysis

→ Apart from the above-mentioned advantages of this tool it has some disadvantages that are explained below.

→ This tool uses subjective or qualitative data rather than quantitative data.

→ This tool is more depends on the perception of the person, the personality of the person, and the preference of the person so we can say it might a biased tool.

→ SWOT_Analysis is a static tool so it does not consider the dynamic nature of the business.

→ This tool is very time-consuming.

→ It is very difficult to involve all people in this analysis at a time.


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4 Comments

  1. Szeretnem letolteni a SWOT pdf-et, de a.sok reklam miatt belekavarodtam.
    Kapjatok segitseget.

    ReplyDelete
  2. Replies
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