Created at Harvard University in the 1920s, the SWOT analysis helps organizations assess issues within and outside of the organization. The SWOT analysis, made up of an assessment of strengths, weaknesses, external opportunities and threats from competition, provides an outline for strategic decision-making.
Purpose
1. Small businesses, large corporations and individuals can utilize the SWOT analysis process for evaluation. By adding a SWOT analysis in their business plans, small businesses can better clarify their short- and long-range strategies. The SWOT analysis, often found in marketing plans, becomes a useful tool for planning and competitive analysis. Organizations often provide a SWOT analysis in a chart format with each segment represented in a different quadrant.
Strengths
2. The strengths segment of a SWOT analysis provides an area to list everything done right either individually or as an organization. This section contains both strengths within the organization and external strengths, such as client relationships. Organizations should seek to reflect their strengths honestly to maintain the integrity of the SWOT analysis. Feedback from others can also provide clarification on strengths captured in this segment of the SWOT analysis.
Weaknesses
3. The weaknesses segment contains needed improvements within an organization or personally. Group sessions can help organizations identify weak areas. Analysis in this segment can provide a clear list of areas that need a development plan to remedy the issues identified. Tools such as action plans and goal formation provide ways to improve weaknesses. From a competitive standpoint, organizations should attempt to mitigate weaknesses as soon as possible since they can offer an undesired opportunity to their competitors.
Opportunities
4. Opportunities for improvement exist within all organizations. This makes the opportunities segment of the SWOT analysis important. Within this segment, organizations identify internal and external opportunities. To have a comprehensive list, organizations sometimes use group facilitation to identify these opportunities. Organizations can add both current and future opportunities to this segment of the quadrant.
Threats
5. By adding threats, such as new competitors in the market, organizations can implement counter measures prior to the threat occurring. To ensure success, organizations may need to deal with both future and present threats. For individuals creating a SWOT analysis for personal development purposes, an example of a threat such as job security problems, would reside in this section of the SWOT analysis.
Purpose
1. Small businesses, large corporations and individuals can utilize the SWOT analysis process for evaluation. By adding a SWOT analysis in their business plans, small businesses can better clarify their short- and long-range strategies. The SWOT analysis, often found in marketing plans, becomes a useful tool for planning and competitive analysis. Organizations often provide a SWOT analysis in a chart format with each segment represented in a different quadrant.
Strengths
2. The strengths segment of a SWOT analysis provides an area to list everything done right either individually or as an organization. This section contains both strengths within the organization and external strengths, such as client relationships. Organizations should seek to reflect their strengths honestly to maintain the integrity of the SWOT analysis. Feedback from others can also provide clarification on strengths captured in this segment of the SWOT analysis.
Weaknesses
3. The weaknesses segment contains needed improvements within an organization or personally. Group sessions can help organizations identify weak areas. Analysis in this segment can provide a clear list of areas that need a development plan to remedy the issues identified. Tools such as action plans and goal formation provide ways to improve weaknesses. From a competitive standpoint, organizations should attempt to mitigate weaknesses as soon as possible since they can offer an undesired opportunity to their competitors.
Opportunities
4. Opportunities for improvement exist within all organizations. This makes the opportunities segment of the SWOT analysis important. Within this segment, organizations identify internal and external opportunities. To have a comprehensive list, organizations sometimes use group facilitation to identify these opportunities. Organizations can add both current and future opportunities to this segment of the quadrant.
Threats
5. By adding threats, such as new competitors in the market, organizations can implement counter measures prior to the threat occurring. To ensure success, organizations may need to deal with both future and present threats. For individuals creating a SWOT analysis for personal development purposes, an example of a threat such as job security problems, would reside in this section of the SWOT analysis.
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