A SWOT analysis is a strategic planning technique that involves looking at a company's internal situation and the external business environment to determine the company's strengths, weaknesses, opportunities and threats with regard to a particular goal.
Strengths
1. Strengths are internal factors that will assist in achieving the desired goal. Patents, supplier relationships, brand recognition and reputation are all examples of strengths.
Weaknesses
2. Weaknesses are internal factors that may interfere with achievement of the desired goal. Lack of internal knowledge and skills, poor reputation and high cost structure are some examples of weaknesses.
Opportunities
3. Opportunities are external factors or conditions favorable to achieving the desired goal. Some examples of opportunities are loosened government regulations, new technologies and increased consumer demand.
Threats
4. Threats are external factors or conditions unfavorable to achieving the desired goal. Some examples of threats are tightened governmental regulations, marketplace competition and shifting consumer tastes.
Using the SWOT Analysis
5. When the SWOT analysis is complete, the management team can review the various factors and determine whether it's possible and feasible to pursue the stated goal. If so, project managers should develop a plan to capitalize on each of the strengths and opportunities and mitigate each of the weaknesses and threats.
Strengths
1. Strengths are internal factors that will assist in achieving the desired goal. Patents, supplier relationships, brand recognition and reputation are all examples of strengths.
Weaknesses
2. Weaknesses are internal factors that may interfere with achievement of the desired goal. Lack of internal knowledge and skills, poor reputation and high cost structure are some examples of weaknesses.
Opportunities
3. Opportunities are external factors or conditions favorable to achieving the desired goal. Some examples of opportunities are loosened government regulations, new technologies and increased consumer demand.
Threats
4. Threats are external factors or conditions unfavorable to achieving the desired goal. Some examples of threats are tightened governmental regulations, marketplace competition and shifting consumer tastes.
Using the SWOT Analysis
5. When the SWOT analysis is complete, the management team can review the various factors and determine whether it's possible and feasible to pursue the stated goal. If so, project managers should develop a plan to capitalize on each of the strengths and opportunities and mitigate each of the weaknesses and threats.
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