swot analysis market research

– Zeeshan Akhtar , head of marketing at Mailmodo

“It's easy to fall into a groupthink because usually, SWOT analysis is conducted by management. What we did differently in this case, given the issue we wanted to tackle, was involve an external consultant as well as internal employees to get more diverse perspectives and creative solutions.”

– Zach Dannett , cofounder at Tumble

“ During a SWOT analysis, delving deep into competitors' operations to uncover their vulnerabilities can be invaluable. For instance, discovering a key competitor struggling with customer service inefficiencies through reviews and market feedback can highlight an opportunity for differentiation.”

– Harrison Tang , CEO of Spokeo

“Set priorities and focus on the most impactful areas first. Allocate resources strategically, prioritizing initiatives that promise the greatest returns.”

Arham Khan , CEO of Pixated

“ In terms of leveraging the results, businesses need to be proactive. Don't just see it as a one-time report - use it as a roadmap. Whether reinforcing strengths, addressing weaknesses or pursuing opportunities, SWOT should influence strategic planning and product roadmaps. Revisit it annually too, as situations evolve. ”

– Kelly Indah , editor-in-chief at Increditools

Ultimately, a SWOT analysis can measure and tackle both big and small challenges, from deciding whether or not to launch a new product to refining your social media strategy.

When conducting your own SWOT analysis, you may face problems like data overload, differing opinions, and actionability. I certainly did. However in my experience, these problems can be solved by:

• Focusing on the most relevant information and filtering out the noise.
• Facilitating discussions to reach an agreement or using a neutral moderator.
• Ensuring each point is specific and actionable, providing clear direction for your strategies.

I will conclude this piece by saying don‘t underestimate the power of taking a step back from time to time to assess where you’ve been, where you‘re at, and where you’re going.

I firmly believe that regularly conducting a SWOT analysis is critical for any entrepreneur looking to grow.

Editor's note: This post was originally published in May 2018 and has been updated for comprehensiveness.

Don't forget to share this post!

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Blog Marketing How to Conduct a SWOT Analysis in Marketing [+Examples]

How to Conduct a SWOT Analysis in Marketing [+Examples]

Written by: Jessie Strongitharm Jul 12, 2022

As marketers, we know how important it is to do your research — especially when it comes to your own strategies, campaigns and all decision-making therein. Yet in my experience, being balanced in your assessments ain’t easy when you’re on the inside looking in. 

Luckily, that’s exactly where a marketing SWOT analysis comes into play. 

A SWOT analysis helps you identify the strengths, weaknesses, potentials and pitfalls of your company so you can refine your strategies for the future.

So in today’s blog, you’ll learn how to use a SWOT analysis to identify problems and strategize solutions in marketing. I’ve also included plenty of customizable templates to give you a leg up.

Let’s get started!

Click to jump ahead

What is a marketing swot analysis , why should marketers conduct a swot analysis, how to create a marketing swot analysis .

• What are common SWOT analysis mistakes?
• SWOT analysis in marketing FAQs 

Hint: It’s no fly-shooing action, nor an internet prank gone wrong. 

A SWOT analysis is a simple and practical evaluation model that helps you understand the internal and external conditions that can make or break your marketing plans . Here’s a quick video on the topic for more context: 

Shorthand for Strengths , Weaknesses , Opportunities , and Threats , SWOT analyses are strategic tools that allow you to visually showcase these insights by organizing them within columns or a matrix. 

Typically, each section explores aspects of a company’s performance, resources and competitive position in the marketplace. Here’s a brief overview of each category: 

Strengths (internal) – Your strengths are the advantages you have in relation to the market and your competitors –  AKA your core competencies, Unique Selling Propositions (USPs) and the areas your brand should focus on to differentiate from others. A strong online presence, diverse service offerings and in-house talent are some examples of strengths. 

Weaknesses (internal) – Your weaknesses are the characteristics of your company that place you at a disadvantage compared to others. Limited resources, poor differentiation from competitors and negative customer perceptions are all examples of weaknesses that affect marketing.

Opportunities (external) – Opportunities are elements in your business’s environment that have the potential to improve your position if used to your advantage. Some examples include: the emergence of new technology and new consumer behaviors or buying preferences.

Threats (external) – Threats are elements in your business’s environment that hurt your company’s potential to compete in the market. Economic downturns, tighter regulations and increasing competition are all examples of threats that can impact your marketing efforts. (Psst – check out the FAQ below for more information!) 

Spoiler alert: the easiest way to build a SWOT analysis is to use a free SWOT analysis template , like the one shown below. Keep scrolling for more templates that you can customize for your own marketing needs. 

Return to Table of Contents

Similar to how a financial balance sheet provides a snapshot of a company’s assets and liabilities at a point in time, a SWOT analysis offers this same level of insight to marketers. (Hint: your sales organizations should do a SWOT analysis too.)

From launching new campaigns and exploring new channels, to considering new technologies and responding to industry trends, SWOT is designed to provide actionable information that  helps marketers — and their organizations — achieve their goals.

This process primes their strategic approaches, allowing them to use their strengths and potential opportunities to balance out, reduce or limit any weaknesses and external threats. 

What’s more, a well-executed SWOT matrix is a crucial ingredient for conducting a competitive analysis — AKA gaining insight on competitors’ marketing tactics, products and performance.

This is key for understanding your relative positioning and resulting competitive advantages, helping you get ahead in the marketing game. 

Check out the competitor SWOT examples below for inspo… 

So in sum, by providing a clear understanding of the market, industry competition and company’s strengths, a marketing SWOT analysis can help you answer questions like: 

• How successful is a given marketing strategy? 
• How are market changes impacting our business operations?
• How is our company performing financially?
• What marketing tactics should we be using?
• What advantage do we have over our competitors?
• What are we doing that our competitors are also doing?
• What products or services are performing/not performing well?
• What current marketplace trends can we take advantage of?
• What new target markets are available?
• What tools and resources do we have to reach at our disposal?
• What factors are pulling time away from our employees?
• Where are we failing to connect with our target market?

You know, just to name a few.

It’s worth noting, these types of analyses are extremely useful in industries where things change quickly. For instance, a  SWOT analysis in healthcare  would’ve helped organizations during the pandemic stay on top of these unprecedented events.

Creating a professional and polished SWOT framework is easy with Venngage’s SWOT analysis templates and drag-and-drop visual editor. Here’s how to get started: 

Define your focus 

The first step to creating an effective marketing SWOT analysis is to identify what your intention is. 

For example: are you looking to create a marketing plan? Or alter your current trajectory? Are you thinking about entering a new market with your existing product/service? Or trying out a new channel/technology? 

No matter the specific use case, know that the more specific your intention, the more useful the outcomes of your analysis will be. 

Compile your data 

It’s time to get all your ducks in a row – and by that, I mean your data! 

Gather your team members and brainstorm points for each section of your matrix, then do your best to condense each into a few succinct point notes. It’s best to keep things as concise as possible to avoid derailing your strategic efforts (more on this below). 

Sign up for a Venngage account and choose from hundreds of templates 

With Venngage, it’s easy to serve up information in a sleek, versatile and professional way.

All you need to do is fill in your user information and your desired use cases to access hundreds of customizable SWOT templates. Once set up, you’ll be able to create beautiful charts without any graphic design knowledge or technical expertise. 

Note: there are hundreds of templates available that you can design and share for free. If you want to access other designs, take advantage of in-editor features like My Brand Kit/Team collaboration and download your files, you’ll need to upgrade your account to a paid plan. 

Customize your SWOT analysis template 

The beauty of Venngage’s drag-and-drop editor is its a simple and powerful design solution for business communications. Once you’ve logged into your account and selected a template, you have the freedom to customize your templates and swap out or add any assets (i.e. text, icon and colors etc) into your design. 

But wait, there’s more! 

Looking to keep your branding consistent? Venngage’s My Brand Kit lets you apply your brand colors and logos to any template with one click.

Want to get more eyeballs on your SWOT analysis before you present it? Team collaboration feature lets you invite members to your team, edit designs together in real time, leave comments, create folders, save your creations and more. 

Easy-peasy, template-squeezy. 

Download your SWOT analysis diagram

Last but certainly not least, you can share or download a high-resolution version of your framework for immediate use in presentations and business communications. 

Sharing is available free-of-charge, while a Premium or Business plan allows you to export your creations to PNG, PDF, HTML and Powerpoint. (And gives you access to the other nifty features I mentioned above!)

What are some common SWOT analysis mistakes?

Congrats – you’re well on your way to becoming a SWOT-ting savant! 

That being said, there are some mistakes even seasoned marketers still make that you’ll want to avoid. Let’s take a look…

1. Listing too many items

Look, I get it: there’s nothing quite like a good brainstorming session to make you come up with 101 ideas and then some.

But the key to an actionable SWOT analysis is being able to present those ideas in a clear, concise and compelling way. That means having a defined focus, and avoiding overloading readers with information.

Try to condense and categorize your individual insights into a few overarching points. Use point-form to convey your ideas in a short space, then organize the information so your most important ideas come first. This will help you decide what to tackle foremost when creating your strategy.

2. Making generalizations

While being concise is important, make sure not to fall into the trap of oversimplifying. This only leads to incorrect, misleading assumptions that hurt your decision-making in the end. 

A good rule of thumb in strategic planning is to avoid black-and-white scenarios. Your data should reflect real-world preferences and campaign performance – not brash assumptions. 

3. Overestimating strengths

Often, people over exaggerate their business’ strengths. While it might feel good in the moment, this idealism only harms your ability to make well-informed strategic choices moving forward. So repeat after me: objectivity is key! Being honest about the facts will help you uncover your true opportunities and risks. 

4. Minimizing weaknesses

The flipside of overestimated strengths? Underestimated weaknesses. So for good measure, I’ll say it again: objectivity is key . 

Even the most successful businesses have areas that need improvement.  If your organization is aware of  its weaknesses, it becomes that much easier to mitigate future roadblocks, meet your targets and achieve long-term growth overall. 

SWOT analyses in marketing FAQs

What do you do with swot analysis data.

Data gained from a SWOT analysis is your key to making smart marketing decisions. 

By evaluating your company’s strengths and weaknesses, you can determine how to allocate your resources efficiently — helping you achieve maximum revenue growth and profitability.

And when you’re aware of what your company can achieve, it’s that much easier to adapt to market trends and changing dynamics. 

How important is the SWOT analysis for marketing managers?

In a word? Very. 

Similar to how market research is vital, without SWOT, it’s nearly impossible to gain a balanced view of your company’s positioning and potential.

Marketing managers who know their external circumstances, strengths and limitations can base their campaigns around informed decisions rather than idealistic assumptions. This helps them adapt to the rapidly changing world of marketing more successfully, and be proactive in their approaches. 

What are examples of threats in a marketing SWOT?

Remember: threats in a marketing SWOT analysis are external factors affecting your businesses’ ability to carry out your marketing objectives successfully. This involves assessing the actions of competitors, the emerging trends in the market and the overall landscape your business finds itself in.

Some good questions to ask are:

• What strategies are our competitors using?
• What advantages do our competitors have over us?
• What overlap exists between our services and our competitors?
• What technological challenges are impacting our business? 
• What adverse market changes are we facing now or in the future?

Like other external challenges, these factors might not be in your control. But the understanding you gain from this process puts you in a prime position to adapt to competitor action and economic changes. 

TLDR: fewer surprises = less last-minute course corrections needed.

Ready to create a SWOT analysis for your marketing team? 

To create a well-executed SWOT analysis that communicates your marketing prospects and pitfalls, you’ll need a way to showcase these insights in a visually appealing way.

While you could draw a matrix out by hand or Word doc the day away, it pays dividends to have a data visualization tool that can do this for you in a flash. 

Venngage’s intuitive drag-and-drop editor helps you create beautiful, professional graphics quickly and easily. Choose from tons of ready-made SWOT analysis templates and swap out the text with your own insights and icons, then export your content in a few clicks. 

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How to Perform a SWOT Analysis on Your Company with a Market Research Tool

A SWOT analysis is a simple framework that goes a long way towards helping businesses develop their strategic planning process along with grasping their own stance in their industry. In turn, this kind of analysis allows them to make informed business decisions.

This is because all businesses have their share of strengths and weaknesses, and no company exists in a vacuum. As such, you should analyze the opportunities and threats that pervade your market to take advantage of your scope of opportunities while steering clear of threats. 

A SWOT analysis allows you to do just that, in turn enabling you to understand your company’s position in your market or niche and use this knowledge to take scalable actions.

This guide explores the SWOT analysis, its importance, how to conduct one for your business and how to use a market research tool to complete your analysis. 

Understanding the SWOT Analysis

Also called the SWOT matrix , this analysis is a kind of strategic planning technique businesses use to identify internal strengths and weaknesses and external opportunities and threats. Its components are laid out in its name, which is an acronym for strengths, weaknesses, opportunities and threats.

A SWOT analysis is a visual study tool that identifies specific strengths, weaknesses, opportunities and threats and presents them in a diagram that takes the form of a two-by-two grid.  

This grid features four quadrants ; each one represents one of the letters of the SWOT and its concept. Each quadrant houses the list regarding the concept behind the letter. This format organizes the elements as internal versus external.  

You can conduct a SWOT analysis on an entire organization, or on individual projects in a single department. Aside from evaluating a company or project, a SWOT analysis is used to determine how closely a business is aligned with its growth trajectories and benchmarks . Additionally, it is used to gauge the performance of a specific project , such as a PR campaign based on preliminary predictions.

A SWOT analysis is most ideal when diverse groups or voices within a business provide actual data points rather than suggested messaging.

The Makeup of a SWOT Analysis

The SWOT analysis is made up of a grid with four quadrants, which represent each letter of the SWOT. To understand which quadrant an idea belongs to, you ought to consider strengths and weaknesses as internal factors, as they deal with the organization, its people, workflows, processes and assets.

On the other hand, opportunities and threats are external factors, given that they originate from your niche, your competition, your market and the wider economy. The following explains each element of this framework in detail:

This element pertains to all the things your organization excels at and how you are distinct from your competitors . It, therefore, involves your advantages over other businesses, which include your price range, quality of service/products, customer experience, access to certain materials, employee satisfaction , manufacturing processes and more. 

Since your strengths empower your organization, consider the factors that make it operational. Answer the following questions for the Strengths portion of your analysis: 

• What does your business do better than others in your industry?
• Which business processes are successful?
• What assets do your teams have? ( brand equity , knowledge, education, network, skills)
• What values drive your business? 
• What kind of physical assets do you have, such as equipment, technology, cash and patents?
• What unique or valuable aspect does your business have?
• What kind of low-cost resources can you draw upon that your competitors can’t? 
• How are you innovating your products and business processes?

Virtually any aspect of your business can be considered a strength if it brings a clear advantage to your business. If all of your competitors provide a certain aspect, then it becomes a necessity, not an advantage.

While admitting the weaknesses in your organization may be unpleasant, these truths are critical to aggregate and examine as soon as possible, as you can only mitigate them when you accept them. 

Given that weaknesses are innate to your company, you should map them out by focusing on your offerings, systems, people, resources, and procedures. In the weaknesses quadrant, mull over all that you can stand to improve and the kinds of practices your company must avoid.

To do so, you’ll need to consider — and possibly uncover — how others in your market view your business. These actors, which include your target market, competitors and media outlets in your niche may notice weaknesses that you are not aware of. As such, to complete this section, investigate how and why your competitors are doing better than you to come to terms with what you lack.  

Use the following questions for the Weaknesses portion of your analysis:

• What are some of the things that your business needs to be competitive?
• Which areas of your business generate the least ROI?
• Are there any aspects of your business that require more resources? (Such as a department, a project, etc.)
• Which business processes need improvement?
• Are you lacking tangible assets such as money, space or equipment?
• Are there any gaps in your team?
• Is your location ideal for your success?
• What areas are your competitors excelling at which you aren’t or not as strong as they are?

All in all, weaknesses are the negative factors that detract your business from its strengths. You ought to consider how to reduce them, along with your key areas for improvement to remain competitive.

Opportunities

This section involves all the openings and probabilities of something positive happening to your business, whether it is publicity, higher profits, greater ROI, a larger social media following and various other business matters. You must claim opportunities for yourself, as the nature of an opportunity is that of an external situation which you must look out for so that you can use it to your full advantage.

Opportunities take the form of developments in your market, whether they are technological, service or experience-related. When it comes to being competitive in your market, spotting and using opportunities makes a major difference to your business . At times these opportunities allow you to position yourself as the leader in your industry.

At other times, opportunities can take the form of small advantages that can still effectively shape your competitiveness. These can be present in both market trends and cultural trends.  

You should also anticipate changes in government policy related to your field. These can involve regulations that create barriers for your business. Additionally, take heed of changes in social patterns, population profiles and lifestyles, as all of these can offer opportunities.

Use the following questions for the Opportunities portion of your analysis:

• What interesting market trends are you aware of, large or small, which could impact your business in a positive way?
• If your market is growing, are there trends that will encourage people to buy more of your products and/ or services?
• What events can your company take advantage of to grow the business?
• Are there any imminent changes to regulations that might affect your company positively?
• Why kind of content opportunities can you execute to your advantage?
• Are there any current events or cultural trends that you can capitalize on?
• Are your vendors or manufacturers offering any perks or bargains that your business can benefit from?
• Do you receive cold emails with opportunities to either be featured in or collaborate with a media outlet or company in your niche?

This element includes anything that can negatively affect your business from the outside, including, but not limited to higher standards in market requirements, supply chain issues, shortage of employees, negative press and more.

No matter your revenue or standing, you should always anticipate threats to your business and be prepared to take the necessary action to thwart them before they take a toll on your business and stunt your growth . 

Threats can arise from anywhere; as such, consider all the obstacles you contend with in getting your product to market and selling it. These can easily include constant changes to quality standards or specifications for either your products, services or overall CX (customer experience). You’ll need to adapt to these changes if you intend on being competitive.

Additionally, although changes in technology are generally viewed positively, they can present threats to your business. As such, you should be wary of these changes so that you can adapt to them before they become true threats .  

Use the following questions for the Threats portion of your analysis:

• Do you have any potential competitors who may enter your market?
• Could upcoming developments in technology change how you do business?
• Have any media outlets spoke negatively about your business or focused their attention on praising your competitors?
• Will your vendors always be able to supply the exact materials you need at the prices that you seek?
• Is customer behavior changing in a way that could have a negative impact on your business?
• Are there any issues with your employees that can lead to high turnover and negative reviews?
• Are there any regulations the may have negative consequences on your business?
• Are there any market trends that could potentially become a threat?

Although threats are external and you have no control over their presence, you can still keep them at bay by conducting various market research techniques .

The Importance of a SWOT Analysis

This kind of technique is important on several fronts. First off, in a general sense, it allows you to make well-informed decisions, as it makes it possible to prioritize the work that you’ll need to do to grow your business.

Understanding your company’s position in your market or industry is crucial for any business in that it allows you to strategically develop your business and avoid wasting resources, efforts and time. This is crucial for various situations and scenarios, whether you’re trying to expand into a new market or compete with a surprise contender in your industry.

A SWOT analysis provides a comprehensive and unbiased overview of your entire business or a specific campaign or product . It forces you to consider every factor that could affect your project or business in one way or another. This is especially useful if you’re dealing with difficulties or lack confidence in your current strategy .

This is because a SWOT analysis offers all the details you’ll need to make actionable plans . The four quadrants grant you an easy way to organize your insights. 

This analysis helps your business operate more strategically, thereby granting you a better chance of reaping success . This is because it addresses what your business lacks, which allows you to minimize risks . It also pinpoints your greatest advantages and chances of success.

A SWOT analysis can be used to jumpstart your strategy whether it is in an informal or full-fledged way , as this tool can serve both approaches . 

Finally, you can also use it to better understand your competitors and their standing. This kind of intelligence lessens their threat to your business, as you can form a competitive narrative for your business, based on your analysis of your competitors . 

Performing a SWOT Analysis & The Need for Conducting Primary Research

In order to form a holistic SWOT analysis, you’ll need to dedicate a significant amount of time to formulate it. But not to worry, there are several steps you can follow and tips to take into consideration.

Additionally, you can objectively strengthen all of your SWOT analysis efforts with a market research tool . Whether or not you decide on using a market research platform, you’ll need to conduct market research for your analysis regardless . This is because this analysis is composed of data and insights from both your company and the market at large. 

While conducting secondary market research is inevitable and necessary, this kind of research alone is insufficient for a SWOT analysis. Consider this: you’re going to need answers to questions concerning both your company and market, both of which secondary research doesn’t provide all the answers for . 

In fact, many secondary sources may be loosely related to your business concerns, but do not answer the specific questions you require answered to adequately fill out your SWOT analysis.   

When you carry out your analysis, be realistic and rigorous and use a strong market research tool with various capabilities that ease the process. 

How to Perform a SWOT Analysis with a Market Research Tool

The following explains how to conduct a SWOT analysis with the use of a market research tool. Remember, market research plays a major role in executing this technique properly. 

• First, create the SWOT Analysis matrix, made up of the four quadrants. The following image shows what it should look like.
• You should aim your SWOT analysis on a specific objective or campaign to reap value from it. 
• For example, you could perform a SWOT analysis to help you decide if you should create a new product, change your CX or internal processes.
• Study trade magazines, news websites, industry sites, reports, blogs and even social media accounts pertaining to your industry.
• This includes studying your competitors through internet research and designated competitor research tools. 
• Examine all the available resources that detail your customer buying behavior , preferences, lifestyles and more. 
• These involve your financial resources, physical location, cost advantages, product features, brand visibility , customer experience, consumer loyalty and more.  
• This also includes employee relations. This is where a market research tool comes in handy. This kind of tool allows you to understand how your workers view your business and can point out their problems, concerns and desires to determine your strengths and weaknesses. 
• Employee feedback survey
• Employee recognition survey
• Employee burnout survey
• List things that you consider to be weaknesses, such as the things that put your business at a disadvantage when compared with others. 
• They can include a lack of new products, customers, staff absenteeism, a lack of intellectual property, declining market share, distance to market and a low customer lifetime value (CLV) among your customers.
• Check on these for accuracy, given that, as time progresses, your weaknesses may change or dissipate. 
• When you review your SWOT analysis after a year, your weaknesses may be resolved, a clear sign of progress.
• Product satisfaction survey
• Customer satisfaction score survey (CSAT survey)
• Customer effort score survey (CES survey)
• Consider different external opportunities for your business. These are not your internal strengths and are not definite.
• One opportunity for business could be a threat to another.
• Do not list the same item as both an opportunity and threat. You should weigh the benefits and drawbacks of a seeming opportunity before you can determine if it indeed is an opportunity or a threat.
• Opportunities include new technologies, training programs, partnerships, a diverse marketplace, new talent, new campaign ideas and a change of government policy.
• Survey your vendors and partners to discover opportunities with B2B surveys . 
• Identify your target market with an online survey platform. 
• Find cultural opportunities by using surveys to unlock cultural trends .
• Segment your target market via market segmentation with surveys. 
• List all the external factors that could cause a problem for your business or threaten it in any way. 
• Threats include high turnover, disgruntled workers, unsatisfied customers, rising unemployment, increasing competition, higher interest rates and the uncertainty of global markets.
• Brand tracking survey
• Brand awareness survey
• Create 4 separate lists on each SWOT element.
• Display them side-by-side so you can have a clear visualization of how your business is running and all of its issues. 
• Prioritize the most pressing issues along with categorizing those that can be dealt with later.
• Review the foremost issues in each of the four elements. 
• How can we overcome the threats we identified?
• How can we make the most of our opportunities?
• How can we use our strengths to take advantage of the opportunities identified?
• What do we need to do to overcome the weaknesses we identified to take advantage of the opportunities?
• How will we minimize our weaknesses to eliminate the identified threats?
• Don’t stop testing or conducting primary market research. Use your market research tool for A/B testing , sending personal surveys to exact targets via the Link Distribution Link feature and extracting any kind of customer information you need.

Supporting the SWOT and Beyond

A SWOT analysis is a strong tool that allows you to understand how your business is faring in your industry, while laying out external factors about your competitors and the industry at large. While you may offer competitive products and good prices, external factors will always affect your business.

In order to perform a SWOT analysis, generally stay informed on your customers and industry and remain competitive, you’ll need to conduct market research . Secondary research provides a useful starting point for studying all of your external factors, from your competitors to how others view your own business.

But it is primary research that will provide you with the most valuable insights. With a potent market research tool, you can easily gather all the insights you need about virtually any topic. A strong tool will make it easy to create and deploy surveys to your intended audience. 

When you’re deciding on the best market research tool for your organization, seek one that offers a mobile-first platform, as the use of mobile devices dominates the digital space.  

It should also include advanced skip logic to route respondents to relevant follow-up questions , use artificial intelligence and machine learning to automatically remove low-quality data, offer a broad range of filtering data options and engage respondents in their natural digital environments via random device engagement (RDE) sampling.

Most importantly, it should allow you to survey anyone. As such, you should opt for an online survey platform that deploys hundreds of millions of surveys to a wide network of digital publisher s . Ideally, these are highly-trafficked websites and apps. 

When you use an online survey platform with all of these capabilities, you’ll quickly obtain your data and extract only the highest quality of it to support the SWOT and any other analysis.   

Do you want to distribute your survey? Pollfish offers you access to millions of targeted consumers to get survey responses from $0.95 per complete. Launch your survey today.

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• Conducting a Situation Analysis: The SWOT Analysis

• Introduction to Market Research: What It Is and Why You Need It
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• Best Practices for Moderating and Analyzing Interviews and Focus Groups
• Conducting Observational Research for Your Business

You might be approaching your market research campaign with a specific question already in mind. Or maybe you have a few areas you want to research, but aren’t sure which to prioritize or even where to begin. Whether you’re certain of the questions you want answers to, or have no idea where to begin, one of the best ways to determine your direction is to take an honest look at where your business is right now to get a sense of where you stand. This is where the SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis comes in.

There are many ways to conduct a situation analysis and we’ll talk more in depth about different kinds of analyses in later pages. We’ll also discuss using these tools to help you position yourself competitively. The purpose of this initial SWOT analysis, however, is to prompt you to look at your business with fresh eyes, and take honest stock of what you have and don’t have. The best organizations out there, after all, are the most self-reflective ones. If you haven’t started your business yet, you don’t quite have a situation to analyze, but we still recommend you read this section, as it might guide you in looking for the business opportunities and threats out there. Otherwise, we suggest you jump right into competitor analysis to figure out what gaps in the market you have the resources to fill.)

The great thing about a SWOT analysis—unlike other situation analyses—is that it can be done without much research. Indeed, it can be conducted over the course of an afternoon, and be based solely on the memories, experiences, and impressions of your employees (and your customers, should you choose to include them).

A SWOT analysis will simultaneously ask you to step back and take a broad, bird’s-eye view of your company and the position it occupies in your market, and narrow down your focus on the key issues that affect your bottom line. And because it asks you to look internally, it provides you with an immediately actionable roadmap for your business.

What is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The tool originated in the 1960s, and has endured because of its business value. SWOT analyses are typically used to help businesses identify a niche in their market, or develop their unique selling proposition (USP) and their messaging. Businesses also often conduct SWOT analyses for specific scenarios or projects: to determine the strengths and weaknesses of an upcoming ad campaign, for example, or decide whether to embark on a business venture by visualizing the pros and cons of doing so.

But SWOT analyses are also useful for kicking off internal discussions and providing your team with a general business overview. Here’s what each component entails:

Strengths are the areas in which your business excels—the factors that give you an edge over your competitors. (Like every other category in a SWOT analysis, your strengths should be comparative . A 19% profit margin might be excellent… but not if your competitors’ average profit margin is 22%). Your strengths can include both intangibles (your brand perception, for instance) and tangibles (your outstanding product features).

Strengths might include your USP, your exceptional service, or the customer benefits of your newest offering. It might include your human resources: specialist knowledge, for example. It might be your business location, your substantial online platform, or your marketing budget. Maybe you can offer great value to customers because your overhead is low. Maybe you have no red tape and can move rapidly on decisions, or your marketing team can quickly change direction if a campaign isn’t working. You get the point: Think tangible assets, people, and processes. Think broadly.

These are the factors that put you at a disadvantage in relation to your business’ competition—indeed, the factors that could be harmful if your competitors decided to wield them against you. So while it’s never exactly a walk in the park to dwell on your weaknesses, it’s crucial to be brutally honest enough with yourself to get them down. (After all, you can’t improve upon them if you’re not willing to acknowledge them.) Think about your company’s shortcomings and limitations, as well as the things your competitors do better than you do.

Maybe you don’t have an established brand reputation, or your staff has rather thin skill sets. Maybe you don’t have a presence on social media, your accounting systems are outdated, or you’ve got unreliable cashflow. Maybe you exist in a crowded market and don’t have a clearly-defined USP. Or you have limited time to work on content marketing, but you know you need a blog . Or no one in your organization is a strong public speaker, but you know you need to get out on the speaking circuit. (Notice how these last two examples recognize a weakness in light of a need?)

Opportunities

Items in this category cover all the avenues open to you to grow your business, generate new revenue, improve products and processes, and advance your company’s mission and brand image. They’re the favorable conditions that— if acted upon —can lend you a competitive advantage. If not taken for granted, they can become your strengths.

Opportunities might include increased demand for your product or service; new technologies on the market that will allow you to improve product quality, production, or communication; or the realization that there’s a gap in the market that a tweak to your existing product could fill. Perhaps a possible partnership is on the horizon; or your local government has a new initiative to encourage local business; or there are shifts in social patterns and population profiles that bode well for your organization.

On the flip-side of opportunity are the potential threats your business faces. These are unfavorable factors that pose a risk to your business itself, or that jeopardize its chances of growth, success, or profit.

Emerging competitors, strategic shifts by your current competitors, and less expensive and more appealing versions of your product or service appearing on the market would all fall into this category. So would a downturn in the economy that reduced overall consumer demand. So would technological developments that might transform the market beyond your organization’s ability to adapt. So would changes in regulatory law, or new legislation that forces you to increase your price point.

Internal Business Factors v. External Market Factors

If you’ve been paying attention to what these categories include, it won’t surprise you to hear that SWOT analyses are often called Internal-External Analyses. That’s because the first two categories—strengths and weaknesses—are typically internal to your organization, while the latter two—opportunities and threats—are typically external market factors. In other words, you can control strengths and weaknesses over time through organizational decisions and actions; but you can’t control opportunities and threats: The best you can do is anticipate them, take advantage of them, or put contingency plans in place in case they occur. What’s more, strengths and weaknesses tend to focus on the present, while opportunities and threats are future-looking.

For these reasons, identifying your organization’s strengths and weaknesses will likely be both easier and less time-consuming than determining the opportunities and threats you face. Because the external factors are often outside your immediate sphere of influence, they may require more research (such as in-depth competitive intelligence, or investigations of the economic trends that may impact your business).

For now—in this initial stage—our suggestion for your first SWOT analysis is simply to start with what you know now : based on daily experience, observation, and recall.

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How to Conduct a SWOT Analysis

SWOT analyses are typically represented in a matrix—a square divided into four quadrants, each of which contains one of the four categories:

Our recommendation is to get as many people in your organization involved in this process as possible. The more minds you’ve got in the room offering ideas and input, the more thorough your analysis will ultimately be.

This includes your employees, who’ll have some of the most valuable insights from your customers’ perspectives. Your marketing, sales, and customer service teams will be able to speak to the frustrations and satisfactions of your target market, and can help you fill in strengths and weaknesses from their point of view. Your sales team, for instance, might know that customers are looking for a more extensive product line; while your customer service team will know that they’re unhappy about your shipping costs.

Include employees from non-customer-facing teams as well (product development, for example). Doing so means you’ll get better buy-in on the decisions that ensue from the analysis.

Finally, consider looking beyond your own ranks and asking for input directly from your customers. Of course, you’ll be gathering “input” from them in secondary ways—through employee anecdotes, or recollecting what they’ve written to you in emails. But innovative companies will invite their longstanding customers into the room for an outside perspective. What’s more, it helps keep everyone honest.

It’ll be up to you whether to simply open up a roundtable discussion, or allow everyone to first fill out a separate SWOT matrix as an individual exercise, and then gather them and open up the discussion. Doing the latter ensures that none of the voices in the room are drowned out, and even the quieter team members have their say. Here are some questions you might pose for each of the four categories, to get the wheels spinning:

Strengths :

• What do our customers most love about our business? What do they most often rave about in terms of our product or service?
• What are our most positive brand attributes? What do others in the market see as our competitive advantage?
• What do we do that no other organization does? Or: What do we do better than other businesses in our industry?
• What are the most invaluable resources or assets that we have at our disposal?
• What unique talents do our employees or teams possess (specialized knowledge / skill sets / experience / reputation)?
• What are our most successful or efficient internal processes?
• Where are we most profitable?
• What factors contribute to us getting the sale, every time?
• What adjectives do our most loyal customers and brand champions use to describe us? What role does our business or brand play in their lives?

Weaknesses :

• What do our competitors do better than we do?
• What are our prospects’ and customers’ biggest complaints? What terms most often come up in negative reviews about our business?
• What resources or assets do we lack? What resources does our competition have that we don’t ?
• What would people in our market say are our negative brand attributes? Our biggest weaknesses?
• What are the factors that ultimately keep us from making sales? What are the biggest bottlenecks in our current sales funnel? What causes customer churn or cancellation?
• What are the least profitable aspects of our business? What costs us the most time and/or money?
• Which of our business processes needs the most improvement?
• Where do our teams need further education or experience?

Opportunities :

• How could we improve our current business processes (customer support, onboarding, sales, etc)?
• Where is the market growing and changing; and how can we position ourselves to exploit that growth? Are there current trends we can take advantage of? New products or services on the market that would provide an opportunity for us to partner or collaborate?
• What kind of messaging has best resonated with our target market so far? What marketing or advertising channels have exceeded our expectations? How can we offer more of the same?
• Who are our most vocal brand advocates, and how can we further engage them?
• What more can we do with our current customers or clients?
• What business goals are we currently working toward? Which ones feel the most exciting… and why?
• Are we allocating our resources in the best possible way? Can we imagine a more efficient reallocation?
• Are there tools, technologies, or other resources out there that we aren’t currently leveraging (to full capacity, or at all )?
• Are there any new target audiences out there that our company has the potential to reach?
• Are there upcoming industry or social events that our organization might be able to take advantage of?
• Are there imminent changes in regulations that might positively impact us?
• Can you imagine how our “strengths” could open up opportunities for our company? What about eliminating the “weaknesses” you listed? What opportunities would this make available?
• Who are the potential competitors infringing on our market? How might these competitors negatively impact our business?
• What are the biggest obstacles our organization faces right now?
• What are our competitors doing very well? What are they doing that we’re not ? What aspects of their business are seeing the most success?
• Is our industry trending in ways right now that might negatively impact our organization? Market trends? Consumer behavior? The economy? Are costs increasing? If so, how do we prepare for these shifts?
• Are regulations changing in ways that could negatively impact our business?
• Is technology changing or advancing in ways that might threaten the position we hold in the market, or how we do business?
• Are any of our resources on the verge of becoming scarce?
• Can you imagine how any of the “weaknesses” you listed could ultimately pose a threat to our business?

What Makes a Strong SWOT Analysis

We’ve already discussed how important radical honesty is to this process. Here are a few other suggestions to help make your SWOT analysis as strong as possible:

• The items you list should be as specific and clearly-defined as possible . “Product features” is not a strength. “Product feature X that, when added, helped us see a 34% increase in sales in 2018” is a strength.
• The items you list should be based on verifiable fact, not opinion . (Abiding by bullet point #1—getting specific—should help with this.)
• As often as you can, identify each of your factors relative to your competitors . You don’t do business in a vacuum, and your prospects and customers don’t make decisions in a vacuum. Scan the horizon; observe where you’re positioned.
• The strongest SWOT analyses will ultimately be distilled down to the most important items in each category . Once you’ve amassed your lists, prune them down by prioritizing: How powerful is each factor? How likely is it to happen? Aim for 3-5 items per category.

Initial Resources for Your SWOT

As we mentioned, the employees (and possibly the customers) involved in your SWOT analysis will bring their own experiences and observations to the table—they won’t have to do much digging for these, except maybe in the deep recesses of their memories. But there are some places they might go to do some “surface research,” if they’re so compelled:

• Customer reviews . What are people complaining about? What are they stoked on? (What’s more, what are people saying about your competitors in their reviews?) Can you find opportunities in the patterns you observe?
• Social listening . Tools like Zoho Social , Hootsuite , Mention , and Google Alerts allow you to track all unsolicited mentions of your business on social media sites. Set up alerts and find out what people are saying about you online.
• Existing company data . Receipts, sales invoices, and formal complaints logged into your CRM or received in your email inbox are all valuable resources. Receipts will alert you to trends in demand; the customer addresses on sales receipts will help you determine the geographical effectiveness of your advertising; complaints will alert you to areas for improvement.

Now we’re passing you the baton, so you can get running with your own situation analysis. Gather your team and start doing the deep work of internal (and external) evaluation.

In the next section, we’ll explain how the results from your SWOT analysis can help you articulate the goal of your market research . We’ll also give you an example of a fictitious business who conducted a SWOT analysis for market research, to show you how to make that transition from analysis to action.

Lauren Shufran

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How to do a SWOT Analysis in 7 Steps (with Examples & Template)

A SWOT analysis is a strategic planning tool that an organization can use to thoroughly evaluate a business or product. SWOT is an acronym that stands for strengths, weaknesses, opportunities, and threats. 

It allows businesses to evaluate their company’s competitive advantage and the flaws of its current business model and create strategies to capitalize on or reduce these observations.

In this article, we’ll discuss the key steps on how to do a SWOT analysis and give several brief examples highlighting the strategy being utilized in different situations.

How To do a SWOT Analysis?

One of the best things about performing a SWOT analysis is that it can be learned quite quickly and mastered with just a few attempts. Even though each framework is individualized, here are the basic steps involved in building a standard SWOT analysis .

Step 1: Determine Your Objective

Before embarking on a SWOT, it is vital to define your objectives. This could include things such as developing a comprehensive schematic of the business model and organization as well as the interactions between the various components, determining the competitive advantage and weaknesses of a new product before its rollout, or determining the feasibility of a new policy.

Step 2: Gather the Necessary Resources

During this stage, it is crucial to determine the resources that would be necessary for you to carry out the exercise, note which of these are accessible, gather these materials, verify the authenticity and reliability of this data, and what limitations you face in terms of data gathering and accuracy. It is also important to ensure that this data is gathered from different sources, perspectives, and levels of the organization to enable you to create a holistic SWOT analysis.

Step 3: Craft a List of Inferences Using the Data

After obtaining data from a wide range of sources, analyze these facts into helpful information and use them to form evidence-based observ–ations. For example, a business that has maintained a strong growth trajectory and a healthy balance sheet over the years can be said to have positive fiscal indicators.

This stage should be akin to a brainstorming session, with members from different divisions within the organization as well as external parties, being allowed to contribute significantly. At this stage, the focus is more on getting as many points as possible, rather than the relevancy or credibility of these inferences.

Step 4: Compile This Information Into the Relevant Sections

After making several key points such as the one above, each of these inferences should be arranged in the relevant sections (namely strengths, weaknesses, opportunities, and threats) using the general principles outlined in the article.

Step 5: Refine These Ideas

Here, the ideas which have been obtained are further refined and can be prioritized according to relevance and importance. Points that are less credible or only minimally important can as well be discarded, allowing you to craft a more concise schematic.

Step 6: Draw the SWOT Analysis Table

The final step is crafting a swot analysis table. This involves creating a matrix and dividing it into four sections. The internal factors (strengths and weaknesses) are listed above, with the strengths on the left and the weaknesses on the right. On the other hand, the external factors (opportunities and threats) are listed below, with opportunities on the left and threats on the right. Simply list your key points under the appropriate sections to complete the SWOT analysis.

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Step 7: Craft Your Strategy

This is not technically a part of the SWOT analysis technique; however, it is important to remember that the entire point of creating this analytic framework was to carry out a strategic management plan. This means that the business will set out a series of plans to meet the objectives which it has previously outlined, as well as create some reliable metrics or milestones which enable it to measure its progress toward achieving these goals.

SWOT Analysis Examples

To better understand how a SWOT analysis is created, let’s take a look at some examples of SWOT analysis. We’ll analyze three examples, the multinational activewear brand Nike , a hypothetical mom-and-pop diner called Joe’s Brooklyn Burgers, and another hypothetical scenario involving a new product rollout.

Large Company SWOT Analysis — Nike SWOT Analysis

From their iconic “swoosh” logo to their equally iconic range of footwear, Nike, Inc. is one of the most easily recognizable activewear brands in the world. While probably best known for its range of iconic footwear, most notably the Air Jordan brand of sneakers, Nike, Inc. is also a leading brand in other sports gear, such as activewear, sports equipment, and wearable fitness tech.

The Nike business model is famous for finding the perfect balance between fashion and functionality when it comes to their products, making them quite popular among both athletes and non-athletes alike. Let’s take a look through this Nike SWOT analysis , which was designed by our platform to figure out how the brand came to dominate the sportswear market.

• Solid brand equity: The brand has one of the most recognizable identities in the business world. Also, it commands solid brand equity (the commercial value of the public’s perception of its products or services). This is because the brand has cultivated a reputation associated with innovation, quality, and social justice;
• Low-cost manufacturing is a key part of its business model: Nike has invested heavily in low-cost manufacturing by outsourcing its manufacturing process to countries that have a favorable wage structure and investing in innovative technologies. This keeps costs low and profit margins high;
• Innovative marketing strategies: Through the smart use of celebrity endorsements, iconic marketing campaigns, effective use of social media, and iconic imagery like the Nike “swoosh” logo, the brand has aligned itself with positive associations such as innovation, stylishness, maximum performance, winning, and self-empowerment;
• Increasing direct-to-consumer sales: Nike has increased direct-to-consumer sales by cutting ties with its major retailers and investing in e-commerce. This increases its profit margin, brand visibility, and control over its image;
• Impressive R&D department: The company is well known for outspending its closest competitors in this area. It has introduced some of the most iconic developments in competitive sportswear, making it a favorite for many top athletes.
• Controversial labor practices: Several reports published in the late 1990s indicated that the low-cost manufacturing strategy used by Nike may have involved unethical labor practices such as poor working conditions, long working hours, and abysmal pay;
• The brand is too dependent on its U.S. market: Nike is seen as a global brand, but careful analysis shows a significant portion of its revenue comes from the U.S. market. This leaves the company vulnerable to market shocks or economic downturns within the U.S. market;
• Worrying about financial indicators: While Nike is still by far the most valuable sports apparel company in the world, recent worrying financial trends have been brought to the spotlight. One of them is the steadily increasing long-term debt profile of the company. It is also worrisome that the company’s profit margins have steadily declined over the past few years;
• Unfavorable relationship with retailers: Using third-party retailers exposes the company to some of the disadvantages associated with this strategy, such as lower profit margins, as well as less control over their branding, and the risk of counterfeit merchandise;
• Reduced quality control: One of the disadvantages of outsourcing your manufacturing process is that you have reduced control over the quality of your products. Outsourcing can also increase the risk of the market being flooded with counterfeit Nike products.

Opportunities

• Investing in new markets: Nike still has room to expand its role as a global market by making inroads into new markets, such as increasing their presence in Europe, Africa, and Asian markets outside of China;
• Diversify their product range: Another area the brand could look into is investing in sports technology, such as wearable sports gear like smartwatches and other forms of digital sports technology. They could also invest in promoting their other sports products besides footwear;
• Invest in new technologies: This includes examples such as anti-counterfeiting technology, green energy, and more efficient sportswear technology.
• Counterfeit Nike products: Counterfeit products reduce the trust customers have in brand quality and create a negative brand image. This is especially important for Nike because the brand is one of the most counterfeited in the world, with footwear being one of the most commonly faked products;
• Competition from other brands: Nike is significantly ahead of other sporting wear companies such as Adidas, Reebok, Under Armour, and Puma. However, some of these companies, such as Adidas, command a significant market share and pull in revenue that is indeed threatening Nike’s continued dominance of the industry;
• High-profile patent disputes: As one of the market leaders in terms of research and development, Nike fiercely protects its intellectual property, such as patents. Therefore, it was certainly newsworthy when the company got into a series of legal battles with its nearest competitor Adidas over accusations of patent infringement related to the Nike Flyknit technology;
• International trade tensions: As an international brand, Nike is exposed to the nuances of trade agreements, embargoes, protectionism, as well as trade tensions;
• Its competitors are investing more heavily in advertising: Nike spends more than its closest competitor Adidas on advertising, having spent approximately $3.8 billion on advertising in 2018 (less than 10% of its total revenue), while Adidas spent $3.5 billion (representing roughly 14% of its total revenue) in that same year.

The objective of this SWOT analysis was to identify the competitive advantage of the brand and educate readers on how the corporation came to dominate the world of activewear. This was identified to be its strong brand equity, low-cost manufacturing, heavy investment in innovative technologies, as well as improving direct-to-consumer sales.

Small Business SWOT Analysis — Bob’s Brooklyn Burgers

Next, let’s take a look at a SWOT analysis for a small, independent restaurant called Bob’s Brooklyn Burgers. This will allow us to examine how the SWOT analysis of a small business differs from that of a large multinational corporation.

Our hypothetical business is a small, family-owned diner based in Brooklyn that caters to a number of local customers and offers a unique Brooklyn-themed menu. The business has been operating successfully over several decades but has run into some lean times in recent years. Let’s examine the SWOT analysis of this business to better understand the issues it faces and as well craft a brief outline of how it can reclaim its former glory.

Proximity to customers. One of the advantages of being a locally popular restaurant is that they are closer to their customers, which gives them local dominance as well as an advantage over franchised restaurants that may be located further away.

• They offer a great customer experience: The restaurant offers amazing customer service due to the personalized nature of its services, its familiarity with regular customers as well as its unique branding style, which resonates with locals;
• The restaurant is known for its top-notch cuisine: One advantage the diner enjoys as a small independent restaurant is greater control over its supply chains and, by extension, greater control over the quality of its ingredients and food. This means that the restaurant can offer higher cuisine than fast-food restaurants;
• The establishment has a great reputation: Bob’s Brooklyn Burgers has been a trusted part of the community for over two decades and has built a reputation for itself as a great local destination for top-notch cuisine as well as an enjoyable dining experience. Not only does this help it retain its pool of loyal clientele, but it has also transformed the location into a local hotspot for tourists and NY-themed food enthusiasts;
• Their small size offers them a greater degree of flexibility: Another key advantage enjoyed by the restaurant is the advantage that being a small, independent business offers in terms of flexibility. This allows for quicker decision-making and rapid changes in internal policies to deal with new challenges. It also allows the business to take more risks in the form of pivots and brand adjustments due to a more streamlined decision-making process;
• A strong workplace culture: As we mentioned earlier, Bob’s Brooklyn Burgers is a family-owned establishment. A significant number of employees are either directly related to the owner or close associates, and have worked at the establishment for years. This creates a positive work environment due to their familiarity with each other and experiences working together, which in turn increases efficiency and enhances customer satisfaction.
• Low-profit margin: Despite its popularity and great reputation, due to several factors, including mounting debt, poor financial management, and rising labor costs, the restaurant has been operating on an increasingly thin profit margin. This poses a significant challenge to the growth and continued existence of the business if not properly addressed either through increasing revenue or cutting down costs;
• Lack of professional services: Similar to most small businesses, the diner suffers from a lack of professional expertise in certain areas such as marketing, accounting as well as legal services. Therefore, these services are often carried out by untrained staff, thereby reducing efficiency and driving up costs in terms of both man-hours lost and monetary losses;
• Poor management: Despite the best efforts of its management staff, the diner has been suffering from poor oversight and a range of conflicting internal policies, which have reduced the overall efficiency of the business;
• Lack of professional hiring practices: Bob’s Brooklyn Burgers is a family-owned establishment and thus maintains a rather informal hiring process. While this may create a familiar, friendly, and cozy working environment, it does so at the cost of hiring the best possible staff. This leads to employing personnel who may not be optimally suited for certain roles, as well as makes the process of letting go of staff difficult;
• Higher per unit costs: The business also runs higher per unit costs than larger restaurant franchises that enjoy the advantages of economies of scale as well as bulk purchases. This further drives up operating costs and reduces the profit margins of the business.
• Outsourcing some of its key operations: Bob’s Brooklyn Burgers would do well to outsource several specialized functions within its business operation, such as advertising and marketing, accounting, and legal services. Not only will they enjoy increased efficiency by allowing professionals to handle these tasks, but it also allows both staff and management to focus on tasks for which they are better suited;
• Further expansion and scaling: Even though the business is quite successful locally, there is still much potential for expansion. It can capitalize on its popularity and positive reputation to build similarly themed restaurants and other iconic locations both within and outside the state;
• Diversification: Currently, the restaurant operates using a limited menu. While this is adequate for most local clientele, expanding the menu may attract more customers as well, this allows the restaurant to diversify and keep up with changing customer preferences;
• Expanding into online food delivery: Bob’s Brooklyn Burgers does not currently operate an online food delivery service. Creating such a service will increase its reach, further expanding its customer base and, by extension, revenue;
• Investing in a strong social media presence: Bob’s Brooklyn Burgers has not yet invested in the power of social media as a marketing tool as well as a customer channel which will allow them to reach out to a much broader and more diverse customer base.
• Changing government health regulations: Certain local legislation introduced by the state government has made it harder and more expensive for the business to source certain ingredients. This has driven up costs, further restricted their menu, and reduced their profit margin;
• Increasing competition from other dining establishments: The business has been facing increasing competition from both fast-food franchises and independent restaurants. This is a significant challenge to their local dominance and has eaten into their market share and, by extension, revenue;
• Lack of adequate access to capital: Small businesses such as Bob’s Brooklyn Burgers have a harder time accessing capital than larger franchises and businesses. This makes it harder for them to expand and also puts them in a more difficult situation during times of significant reductions in revenue, such as a global pandemic.

The objective of this SWOT analysis was to determine the issues plaguing the diner and help it design a strategy to improve its current business model. To achieve this, a matching and converting strategy will be used. This means that we will attempt to combine the strengths and opportunities of the business while converting the weaknesses and threats into positive indicators, or at least reducing their negative effects.

First of all, the company can outsource the various professional services listed above in order to enable it to focus on the parts of the business operation where it has a significant advantage over its competitors. This includes providing a top-notch customer experience as well as cooking top-quality meals.

Another option they could look into is utilizing the reach of social media as an avenue to build a strong online food delivery service. The fact that many of their customers are local and live relatively close to the establishment also makes this feasible. This also has the added advantage of diversifying their revenue stream .

Lastly, the company can focus on using its reputation for providing great meals as a focal point for expanding into new territories and new markets.

Product Rollout SWOT Analysis — The Turbo 2000 Product Rollout

Now that we have discussed how to perform a SWOT analysis on both large and small companies, let’s focus on the last example in this article: How to perform a SWOT analysis on a hypothetical product launch.

For this example, we will perform a SWOT analysis on the rollout of a hypothetical high-end gas stove known as the Turbo Burner 2000. This example will highlight the competitive advantage of the product as well as the challenges it may face during its launch.

• The product is coming from a well-trusted brand: One of the advantages enjoyed by the Turbo Burner 2000 is that the product comes from a well-respected company with strong brand equity and a reputation for making top-notch cooking appliances. This will boost consumer confidence and encourage more people to purchase the product;
• It makes use of revolutionary cooking ware technology: The product incorporates revolutionary gas stove technology and has been found to increase thermal efficiency and reduce fuel consumption. This helps cut down costs in the long run, shorten cooking time, reduce emissions, and enhance customer satisfaction with the entire process;
• Targeted branding and marketing: The company has created a niche for itself and is the go-to brand for high-end cooking appliances and equipment. They cater to a range of customers who may require such products, including professional chefs, restaurants, and middle- to upper-class cooking enthusiasts. 

Catering to a narrow niche allows them to better target their branding efforts and increase their profit margin by focusing resources on their key market, which reduces their customer acquisition cost. It also creates an impression of exclusivity, which only serves to further drive up the image of the company as a luxury brand;

• Improved product design and ergonomics: The new product has a more ergonomic design than its predecessor and is very user-friendly. It is made from lighter materials, making it more portable as well as compact. There are also more useful functions, such as a sleeker self-lighting feature, color-coded indicator lights, and a more sensitive temperature control;
• Backed by a company in a strong financial position: The parent company of the product is currently enjoying a strong financial position, which helps them to financially support the launch of the new product in terms of marketing and advertising;
• Very successful first model: The first model (the Turbo Burner 1000) was a massive success within the cooking industry and likely encouraged many buyers to upgrade to the newer model.
• The product is quite expensive: The Turbo Burner 2000 is quite costly for a gas stove, and this is likely going to scare off most buyers except professionals and cooking enthusiasts;
• It is seen as a luxury good: Even though gas stoves are used by people of all economic backgrounds, the price of the product, its marketing strategy, as well as the reputation of its parent brand has given it the image of a luxury product. This may alienate some buyers from utilizing the product, as well as runs the risk of creating a negative association with the brand;
• It is marketed to a narrow niche: While there are several advantages that come with targeting your product at a narrow portion of the market, there are also some drawbacks as well. First of all, it reduces your reach and may alienate a range of potential customers, leading to less actualized revenue. It also increases your vulnerability to rapid changes in market conditions and consumer sentiment, as your income is significantly less diversified;
• Costly R&D and marketing: The Turbo Burner 2000 is a top-notch product and required significant investment in R&D to design. Also, although the company caters to a much narrower niche than most competitors, its Customer Acquisition Costs are much higher.
• Expand its market share by offering cheaper versions: The brand could seek to diversify its business model by offering a range of cheaper alternatives to the standard model. This opens up the business to new customers and by extension increases its potential revenue. It also reduces their vulnerability to sudden shifts in market sentiment;
• Focusing on further innovation: The parent brand has a strong reputation for being an innovative powerhouse in the industry and can capitalize on the strong R&D department it has built to create more innovative technologies and improve on existing designs. This will help keep it a step ahead of its competitors and also increase the reputation of the brand as an innovator within the industry;
• Investing in sustainability: The fossil fuel industry has been under pressure in recent years and, by extension, materials and equipment are driven by fossil fuels. Investing in technologies and technologies that increase the eco-friendliness of the product is a great way to boost positive consumer associations with the brand;
• Increased supply chain efficiencies: By investing in improving the efficiency of its supply chain, the company can further drive down the cost of individual units of the product, increasing sales and also improving its profit margin as well.
• Supply chain disruptions: Significant disruptions to the supply chain of the product may lead to a wide variety of issues such as increased cost per unit as well as reduced production capacity. Overall, this may negatively affect the price or availability of the product and by extension its introduction into the market;
• Changing consumer sentiment: With more consumer interest in climate change and sustainable technologies, the fossil fuel industry and other industries which are dependent on it have attracted much criticism. For example, there has been increasing concern among consumers concerning the long-term health effects of cooking gas and its links to a range of chronic illnesses;
• Changing macroeconomics: Rapid changes in macroeconomics such as recessions and rapid rises in inflation weaken the purchasing power of buyers. This may affect the ability of a lot of individuals to purchase consumer goods such as high-end gas stoves;
• The success of the initial rollout. The widespread success of the first model may discourage buyers from upgrading to the newer product, even with the improved specifications.

Performing a SWOT analysis may be one of the most important activities that any business can carry out within its lifetime. Whether this is done regularly or just as a one-time evaluation, understanding how to get the best out of the technique is key to fully utilizing the benefits and understanding the limitations of the technique.

Who is Daniel Pereira ?

I love understanding strategy and innovation using the business model canvas tool so much that I decided to share my analysis by creating a website focused on this topic.

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SWOT analysis - What is and how to conduct it?

Appinio Research · 01.06.2023 · 13min read

Back to Market Research Blog

The SWOT analysis is a valuable tool used by organizations and individuals alike to evaluate their current situation, make informed decisions, and develop effective strategies. 

In this blog post, we will explore:

• What a SWOT analysis is
• How it works and provide examples
• Discuss its use cases and examine its pros and cons. 

By the end, you'll have a comprehensive understanding of this powerful analysis technique and its practical applications.

What is a SWOT analysis?

A SWOT analysis is a framework that helps individuals or organizations assess their internal strengths and weaknesses, as well as external opportunities and threats. 

The best thing about the SWOT analysis? It is a simple brainstorming technique!

What does SWOT analysis stand for?

The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats , which are the four key elements analyzed in this process. 

By examining these factors, a SWOT analysis enables individuals or organizations to gain insights into their current position in relation to the external environment and identify areas where they can capitalize on their strengths, address weaknesses, seize opportunities, and mitigate threats.

How does a SWOT analysis work?

A SWOT analysis involves a systematic evaluation of the four components: strengths, weaknesses, opportunities, and threats. Here's a breakdown of the process:

• What do you do well?
• What have your customers told you they like about your brand / business?
• What do you do better than your competitors?
• What’s unique about your business, products or services?
• What assets do you own (intellectual property, proprietary technology, capitol)?
• What can you improve?
• What are your customers dissatisfied with?
• What do you do worse than your competitors?
• Where are you lacking in knowledge and/or resources?
• What emerging trends can you take advantage of?
• Which of your strengths might be valuable to potential partners?
• What market could you tap into?
• Are there other markets or target groups with less competition?
• What is your competition doing?
• How could our weaknesses leave us vulnerable?
• What market trends are we unprepared for?
• What economic or political issue could impact our business?

Once you have identified and documented the strengths, weaknesses, opportunities, and threats, you can move on to the next steps of the analysis.

SWOT analysis use cases

We’ve seen that a SWOT analysis is a simple and effective method, but when would you use it? A SWOT analysis can be applied to a wide range of situations and entities, including:

• Business planning and strategy development
• Market research and competitor analysis
• Project evaluation and decision-making
• Product development and innovation
• Non-profit organizations and fundraising efforts
• Personal development and career planning
• And more...

By understanding your specific use cases, you will be able to identify how a SWOT analysis can be utilized in your specific contexts to gain a competitive advantage or make informed decisions.

The next section will provide examples to illustrate how a SWOT analysis can be applied.

SWOT analysis examples

In this section, we will provide some examples of SWOT analyses to demonstrate how this framework can be used in various contexts. These examples will cover different industries and scenarios, showcasing the versatility of the SWOT analysis as a decision-making tool. By exploring these examples, readers will gain practical insights into applying the SWOT analysis to their own situations.

Let’s conduct a SWOT analysis for a brand / business / company. Imagine you’re running a skincare brand.

You have stores all over the country and you’re looking to expand into another international market. 

Your brand has a lot of different product lines catering to different concerns and to many different target groups. 

Your e-commerce is well established, but you don't provide international deliveries. What would you need to take into account before starting your expansion strategy and planning?

1. Identify Strengths

• Established Brand Reputation : The skincare brand has built a strong reputation in the domestic market, known for its quality products and effective solutions.
• Diverse product lines : The brand offers a wide range of product lines catering to different skincare concerns and target groups, providing versatility and options for customers.
• Nationwide store presence : The brand has a network of physical stores throughout the country, contributing to its visibility and accessibility.
• Strong e-commerce presence : The brand has a well-developed e-commerce platform, enabling convenient online shopping for customers within the country.

2. Weaknesses

• Limited international presence : The brand has not expanded into international markets before, lacking experience and infrastructure to support global operations.
• Lack of global distribution : The brand currently does not have a system in place for delivering products to customers in other countries, which may pose logistical challenges.
• Potential cultural adaptation : The brand may face difficulties in adapting to the cultural preferences and skincare needs of the new international market.

3. Opportunities

• Untapped international market : Expanding into a new international market presents an opportunity to tap into a potentially large customer base and increase brand recognition globally.
• Growing interest in skincare : The skincare industry is experiencing steady growth worldwide , with increasing consumer interest in skincare products and self-care routines.
• Demand for natural and sustainable skincare : There is a growing demand for natural, eco-friendly, and sustainable skincare products.
• Competitive landscape : The international skincare market is highly competitive, with established global and local brands competing for market share.
• Regulatory compliance : The brand will need to navigate and comply with different regulations and requirements in the new international market, which may involve additional costs and complexities.
• Cultural and consumer preferences : The skincare needs, preferences, and beauty standards can vary significantly across different countries and cultures, requiring customization and adaptation of products and marketing strategies.

But a SWOT analysis can also be conducted to assess ourselves.

Imagine you’re re-entering the workforce, it could be useful to run a SWOT analysis before updating your CV or joining an interview.

Personal SWOT analysis

A personal SWOT analysis could go this way.

• Strengths : Strong communication skills, extensive industry knowledge, ability to work well in a team.
• Weaknesses : Lack of advanced technical skills, limited experience in project management, limited knowledge of the latest softwares or tools.
• Opportunities : Professional development programs, networking events to expand connections, potential for career advancement.
• Threats : Strong competition for job opportunities, economic downturn impacting job stability.

How to do a SWOT analysis step-by-step

• Identify the objective : Determine the purpose and focus of the SWOT analysis. Are you evaluating a business, a project, or yourself? Clarify the specific objective to ensure a targeted analysis. You can use this formula “My business needs [X]. We can meet those needs by doing [X], [X] and [X].”
• Gather information : Collect relevant data and information about the subject of the analysis. This may include internal documents, market research, financial reports, customer feedback, or industry trends. Ensure a comprehensive understanding of the internal and external factors that impact the subject.
• Create a SWOT matrix : Draw a four-quadrant matrix on a piece of paper or use a digital tool. Label the quadrants as Strengths, Weaknesses, Opportunities, and Threats.
• Identify strengths : Analyze the internal factors that give the subject a competitive advantage. Consider resources, skills, expertise, assets, or positive attributes. Write down the identified strengths in the appropriate quadrant.
• Determine weaknesses : Evaluate the internal aspects that put the subject at a disadvantage. Look for areas of improvement, limitations, or challenges. Note down the identified weaknesses in the corresponding quadrant.
• Identify opportunities : Examine external factors and trends that could potentially benefit the subject. Look for emerging markets, technological advancements, changing customer needs, or favorable industry developments. Record the identified opportunities in the relevant quadrant.
• Assess threats : Analyze external factors that could pose risks or challenges to the subject. Consider competition, economic factors, regulatory changes, or disruptive technologies. Note down the identified threats in the appropriate quadrant.
• Analyze the relationships & impact : Examine the relationships between the different elements in the SWOT analysis. Look for ways strengths can capitalize on opportunities, weaknesses can be mitigated, or threats can be addressed. Identify potential strategies or actions based on these relationships.
• Develop action plans : Based on the analysis, create action plans to leverage strengths, address weaknesses, seize opportunities, and mitigate threats. Prioritize the actions based on their potential impact and feasibility.
• Review and update : A SWOT analysis is not a one-time activity. Regularly review and update the analysis as the subject and its environment evolve. This ensures the analysis remains relevant and guides ongoing decision-making.

Remember, conducting a SWOT analysis is an iterative process that requires thoughtful analysis and input from relevant stakeholders. By following these steps, you can effectively evaluate the subject's current situation and develop strategies for success.

Pros and Cons of SWOT analysis

Like any analytical tool, a SWOT analysis has its strengths and limitations. 

In this section, we will discuss the advantages and disadvantages of using a SWOT analysis. By understanding these pros and cons, readers will be able to make an informed decision about when and how to use a SWOT analysis effectively.

• Simplicity and ease of use : The SWOT analysis is a simple and straightforward brainstorming technique that can be easily understood and applied by individuals at various levels of expertise. Its simplicity allows for quick adoption and implementation.
• Comprehensive assessment : The SWOT analysis provides a holistic view of the subject by considering both internal and external factors. It helps identify a wide range of strengths, weaknesses, opportunities, and threats, enabling a comprehensive assessment of the situation.
• Decision-making support : The insights gained from a SWOT analysis can inform decision-making processes. By identifying strengths and opportunities to leverage, as well as weaknesses and threats to address, decision-makers can make informed choices and develop effective strategies.
• Strategy development : The SWOT analysis serves as a valuable tool for strategy development. It helps align resources, capabilities, and market conditions to determine the best course of action. It facilitates the identification of competitive advantages and areas for improvement.
• Versatility and adaptability : The SWOT analysis can be applied to various contexts, including businesses, projects, personal development, and non-profit organizations. Its flexibility allows for adaptation to different industries and situations.
• Simplistic analysis : While the simplicity of the SWOT analysis is a strength, it can also be a limitation. The framework may oversimplify complex situations and fail to capture all relevant factors, leading to incomplete or biased analysis.
• Subjectivity and bias : The SWOT analysis is subjective and susceptible to personal biases. Different individuals may have different interpretations of strengths, weaknesses, opportunities, and threats. It is important to involve multiple perspectives to minimize bias.
• Limited quantitative data : The SWOT analysis primarily relies on qualitative data, which may lack the precision and objectivity of quantitative data. The absence of quantitative metrics can limit the depth of analysis and hinder accurate evaluation.
• Static analysis : The SWOT analysis provides a snapshot of the current situation. However, it may not effectively capture dynamic and rapidly changing environments. Factors can evolve quickly, making the analysis outdated if not regularly reviewed and updated.
• Lack of prioritization : The SWOT analysis does not inherently prioritize the identified elements. It is essential to further analyze and prioritize the identified strengths, weaknesses, opportunities, and threats to focus on the most critical areas.

In conclusion, the SWOT analysis is a powerful method that enables individuals and organizations to evaluate what works well, what is no longer working and how businesses or organizations can identify those areas and improve them. 

By systematically examining these factors, the SWOT analysis provides valuable insights that can inform decision-making, strategy development, and action planning. 

While it has its limitations, the SWOT analysis remains a widely used and versatile tool in a variety of contexts. 

By leveraging the strengths and opportunities while addressing weaknesses and threats identified through a SWOT analysis, individuals and organizations can position themselves for success and navigate the ever-changing business landscape effectively.

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What is Convenience Sampling? Definition, Method, Examples

SWOT analysis: how to do it + 4 examples

Ever stood at the crossroads of business decisions, the winds of uncertainty howling around you? Illuminate your path with the beacon of SWOT analysis. This revered compass, trusted by entrepreneurs and seasoned executives alike, unveils the landscape of opportunities and hurdles that lie ahead, waiting to be conquered. 

A SWOT analysis is a powerful tool used by business leaders and executives to assess strengths and potential challenges within their operations. 

Think of it as a roadmap for strategic planning processes and smart decision-making. Whether you’re a startup finding your feet or an established company looking to refine your strategies, a good SWOT analysis can guide you toward success. 

In this article, we’ll walk you through the ins and outs of conducting a SWOT analysis, when to use this technique, and provide real-world examples to illustrate its effectiveness.

What is a SWOT analysis?

4 swot analysis examples, when to use a swot analysis.

• Learn how to build a strong business strategy with IMD

The SWOT analysis is an audit framework used by businesses of all sizes. It helps dissect your organization’s present and future outlook. 

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. These are the lenses through which we examine internal factors (the things we’re good at and not-so-good at, under our control) and external factors (circumstances we can’t control).

This analysis is commonly structured into a visual representation made up of four quadrants, each devoted to a category, termed the SWOT matrix.

Analyze internal factor s

When it comes to internal factors, these are things that are specific to your organization and under your team’s control and encompass both strengths and weaknesses. 

Consider various metrics like turnover rates, operational efficiency, financial performance, and customer satisfaction for your analysis. 

These metrics provide insights into the health of your organization, helping you discover what you’re doing well and areas that need improvement.

The human resources team is crucial for managing these aspects. They oversee talent processes, boost an organization’s strengths, and tackle weaknesses like turnover, skill gaps, and conflicts to improve an organization.

To identify your company’s strengths, a good starting point is to brainstorm things that make your company stand out from the competition or highlight areas where you consistently excel.  

Consider the following questions: What areas of our business consistently receive positive feedback from customers, partners, or stakeholders? What assets do we have that competitors lack? How do we uniquely address customer needs?

For example, Amazon recognized its strong infrastructure and customer demand. The company continued to improve its e-commerce operations by investing heavily in its logistics and cloud computer capabilities, as well as expanding into new markets to consistently grow its profitability.

Uncovering your company’s weaknesses involves taking a closer look at areas that might be holding you back. Start by asking: Where do we often run into hurdles or inefficiencies? Are there certain issues that customers frequently raise concerns about? 

You’ll also want to consider whether skill gaps, resource constraints, or internal disagreements affect the performance of your team members. 

For example, Tesla had implemented an overly complex automation strategy in their manufacturing processes, which led to inefficiencies and production bottlenecks, delaying deliveries to customers. 

To address this issue, they focused on identifying specific areas where human labor was more effective and efficient than automation, and they reconfigured their production lines accordingly. 

Explore external factors

External factors can create both opportunities and threats for your business. Addressing these head-on prepares your team for growth and risk management.

Take a look at market trends, demographics, and tech advancements to grasp uncontrollable variables like consumer shifts, demographic changes, tech breakthroughs, and economic fluctuations.

You can monitor these variables through online platforms, industry reports, conferences, following tech blogs, and sending out customer surveys. 

By understanding how the external environment can influence your business, you can adapt strategies and stay competitive in a dynamic market.

Opportunities

When exploring external opportunities, it’s about spotting those areas where the market or industry is offering great conditions for growth.

Think about this: Are there up-and-coming market segments that match our strengths? Could we use new technologies to connect with a broader audience? Is there a gap in the market that we can fill uniquely? 

A prime example of a company capitalizing on external opportunities is Airbnb . In their early days, Airbnb identified a growing desire for unique, affordable accommodations. 

They used technology to connect homeowners with travelers seeking unique lodging experiences. This allowed Airbnb to tap into an emerging market while leveraging its strengths in technology and user-friendly platforms.

Finding external threats means looking for potential challenges that could put a dent in your business. 

Think about it: How might the actions of competitors affect our market share? Are economic signs hinting at downturns? Could changes in rules mess up our operations? Are there any weak spots in our supply chain? 

By getting a grip on these threats and planning for them, you can cook up strategies to stay on course when the going gets tough.

Unfortunately, a notable example of a company addressing external threats is Blockbuster. The emergence of online streaming and competitors like Netflix posed a significant threat to Blockbuster’s traditional video rental business model. 

Blockbuster failed to adapt and plan for these threats effectively, ultimately leading to its downfall, underscoring the need for proactive strategic planning in the face of challenges.

Here are four real-world examples of SWOT analysis of companies to showcase the different perspectives this versatile tool can provide across various sectors.

Peloton is a technology-driven fitness company that offers a range of exercise equipment and interactive workout classes, enabling users to engage in virtual fitness experiences from the comfort of their homes.

• Strong brand recognition in the home fitness industry
• Has both hardware and software systems

Weaknesses:

• High initial costs of equipment might put off some customers
• Dependent on continued consumer interest in home fitness

Opportunities:

• Expanding into global markets 
• New product offerings to reach a broader customer base
• Potential market saturation and reduced demand for home fitness
• Economic downturns affecting consumer spending on non-essential items

To address the high initial equipment costs, Peloton introduced financing options, making their products more accessible. They also expanded into global markets, seizing the opportunity for broader customer reach. 

Although they faced the threat of market saturation, Peloton continues to expand its product line and focus on software improvements, such as virtual fitness subscriptions.

Target is a retail corporation known for its wide range of products, including clothing, electronics, and groceries, with a blend of physical stores and e-commerce platforms.

• Established presence in the retail sector
• Wide product range catering to various customer needs
• Competition from both online and brick-and-mortar retailers
• Limited international presence compared to some competitors
• Expanding global manufacturing and sales
• Leveraging customer data for improved customer experience
• Rapidly changing consumer preferences and shopping habits
• Economic uncertainty impacting consumer spending

Target effectively addressed the threat of competition by diversifying its offerings. They incorporated food and beverage items and popular makeup brands into their stores to create “mini malls ,” broadening their appeal and convenience. Additionally, they introduced curbside pickup, adapting to evolving shopping habits. 

To mitigate the impact of economic uncertainties, Target diversified its revenue streams by establishing a media company. These strategic moves have allowed Target to thrive in a highly competitive retail landscape. 

Salesforce is a leading customer relationship management (CRM) software provider that offers cloud-based solutions to help businesses manage customer interactions, sales, marketing, and service operations.

• Strong focus on continuous product development
• Extensive network of partners and integrations
• High subscription costs for enterprise-level solutions
• Dependence on third-party platforms for some functionalities
• Using artificial intelligence and data analytics for better customer insights
• Global market expansion to reach untapped regions
• Data privacy regulations impacting customer data management
• Increasing competition from established tech giants entering the CRM space

To address high subscription costs, Salesforce introduced flexible pricing models for customers. They have also honed opportunities to increase profitability by expanding their Salesforce Towers in Dublin, Chicago, Sydney, and Tokyo. 

In response to competition from other tech companies, Salesforce maintains a strong core team by offering team-building sessions and focusing on a flexible, employee-centric work environment to boost morale and foster innovation.

Starbucks is a globally recognized coffeehouse chain that not only provides a wide array of coffee beverages but also offers a range of food options and branded merchandise across its vast network of stores.

• Strong global brand recognition and customer loyalty
• Diverse product lines beyond coffee
• High prices compared to competitors
• Sensitivity to fluctuations in coffee bean prices
• Launching more plant-based and healthier food options
• Implementing more digital initiatives to improve ordering and loyalty programs
• Competition from both local coffee shops and larger chains
• Changing consumer preferences toward healthier or more sustainable options

To address price competitiveness, Starbucks focused on enhancing customer experiences through loyalty programs and continued expansion. They catered to consumer preferences by introducing plant-based and healthier food options. 

In response to threats from local coffee shops and larger chains, Starbucks expanded globally and prioritized sustainability. Their customer-centric approach and global expansion strategies have allowed them to remain a dominant force in the competitive coffee industry.

A SWOT analysis is not just a one-size-fits-all tool — you can use it in different situations to get the upper hand in decision-making and developing smart strategies. 

Below are some instances where a SWOT analysis can be particularly beneficial. 

Decision-making

Once you’ve determined the areas your organization could improve on, you can use this information to drive decision-making processes in your company. 

Imagine your business is in the retail sector and you conduct a SWOT analysis that reveals a potential weakness in your supply chain efficiency. 

You might choose to prioritize initiatives aimed at streamlining your supply chain operations, such as implementing advanced inventory management systems.

As you create a comprehensive action plan around these initiatives, you’re essentially harnessing the power of SWOT analysis to guide your strategic decisions.

Business strategy

SWOT analysis gives us an in-depth look at what our organization could be doing to position ourselves in a better standing against our competitors. 

When we identify external threats and internal weaknesses and leverage our strengths and opportunities, we can develop business plans so the company can thrive financially and increase customer satisfaction. 

For example, a SWOT analysis helps tailor marketing strategies by highlighting strengths (like unique features) and addressing weaknesses (such as outdated technology).

It can also help us to form partnerships to amplify market presence and use social media to enhance brand visibility and engagement with target audiences.

Start-ups and small businesses

Start-ups and small businesses typically experience a great amount of trial and error when it comes to business strategies, operations, and customer approaches. 

Conducting a preliminary SWOT analysis can identify competitive strategies and help build a strong business model. 

For example, opportunities that have been identified, such as new markets or emerging trends, might guide their expansion efforts.

In addition, they can address weaknesses like limited resources or a lack of brand recognition early on by devising strategies to overcome these challenges.

SWOT for enterprises

Enterprises operating at scale can find SWOT analysis particularly beneficial in strategic decision-making. Assessing internal strengths and weaknesses empowers leaders to fine-tune their operations, leveraging resources and technology effectively. 

Companies can identify opportunities and threats to inform expansion into new markets and customer retention initiatives. For example, recognizing a market shift toward sustainable practices, an enterprise can reposition its product line to align with this trend.

Entrepreneurs

Entrepreneurs, especially in the early stages of their ventures, can harness SWOT analysis to steer their businesses toward success. Identifying personal strengths and weaknesses helps in skill development and resource allocation. 

By spotting opportunities and threats in the market, entrepreneurs can tailor their business models to tap into emerging trends and mitigate challenges proactively. For instance, recognizing a growing demand for eco-friendly products, an entrepreneur can pivot their offerings to meet this need.

Nonprofit organizations

Nonprofit organizations can utilize SWOT analysis to achieve their missions effectively. Identifying internal strengths, like dedicated volunteers, helps in maximizing their impact. Addressing weaknesses, such as limited funding, can lead to improved resource management. 

By recognizing external opportunities, such as partnerships with local businesses, nonprofits can expand their reach. Moreover, understanding potential threats, like changing donor behavior, allows nonprofits to adapt fundraising strategies to sustain their essential work.

Personal SWOT analysis

Completing your own SWOT analysis empowers you to leverage your internal strengths while recognizing weaknesses and opportunities, helping you with career growth and goal setting.

For instance, if you identify a weakness like lacking proficiency in a critical software, you might proactively take online courses or workshops to enhance your skills. 

Similarly, if you recognize a threat such as automation affecting your industry, you could mitigate it by staying updated with industry trends or diversifying your skill set. 

The insights from your SWOT analysis serve as a tool to guide your career decisions and ensure a strategic path toward success.

Learn how to build a strong business strategy with IM D

A SWOT analysis lays the groundwork for your business, ensuring everyone knows where you are and where you want to go. It’s like creating a roadmap to guide your actions. 

If you’re eager to delve deeper into mastering business strategy, consider exploring IMD’s comprehensive learning journeys. Our strategy programs are tailored to provide comprehensive insights into various aspects of strategic management, helping business professionals like you excel in their roles.

These programs offer a rich understanding of competitive advantage, market trends, effective decision-making, and leadership skills. 

By exploring strategy programs that suit your needs, you’ll gain a deep understanding of how to leverage strengths, address weaknesses, seize opportunities, and prepare for challenges — just like a SWOT analysis for your career. Discover the program that fits you best and receive personalized feedback from one of our advisors to guide you on your professional journey.

It’s a chance to improve your business acumen and lead your organization with confidence.

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Ever stood at the crossroads of business decisions, the winds of uncertainty howling around you? Illuminate your path with the beacon of SWOT analysis. This revered compass, trusted by entrepreneurs and seasoned executives alike, unveils the landscape of opportunities and hurdles that lie ahead, waiting to be conquered.  A SWOT analysis is a powerful tool […]

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What is SWOT analysis and How to do a SWOT analysis: A Comprehensive guide

SWOT analysis is used across industries to measure S trengths, W eaknesses, O pportunities and T hreats of a business venture. Although it’s mainly used to assess business ventures, it can also be easily used to measure almost anything that is influenced by external and internal factors. Now that you know what a SWOT analysis is, let’s look at why you should use them and how to use them.

What is a SWOT Analysis?

Why use swot analysis, how to use swot analysis technique effectively, who needs/creates swot diagrams, different uses of swot diagrams, swot analysis best practices.

The goal of a SWOT analysis is to identify key areas where the business can improve its performance, as well as potential risks or obstacles that may need to be addressed to achieve success. By identifying these factors, the business can develop strategies to maximize its strengths, minimize its weaknesses, take advantage of opportunities, and mitigate potential threats.

Strengths are the internal factors that give an organization an advantage over its competitors. These may include areas such as the organization’s financial resources, intellectual property, skilled workforce, strong brand image, or proprietary technology. By identifying and leveraging these strengths, the organization can position itself to take advantage of opportunities in the market.

Weaknesses are the internal factors that place an organization at a disadvantage compared to its competitors. These may include areas such as outdated technology, lack of skilled personnel, poor reputation, or limited financial resources. By identifying these weaknesses, the organization can take steps to address them and improve its overall performance.

Opportunities

Opportunities are external factors that could help an organization grow or improve its performance. These may include factors such as new markets, emerging technologies, changing consumer preferences, or regulatory changes. By identifying these opportunities, the organization can develop strategies to take advantage of them and stay ahead of the competition.

Threats are external factors that could harm an organization’s performance. These may include factors such as economic downturns, increased competition, changing regulations, or shifts in consumer preferences. By identifying these threats, the organization can develop strategies to mitigate their impact and minimize risk.

With hundreds of methods to assess a business venture you might wonder why use SWOT analysis over other methods. Well here are few reasons

• First introduced by Albert Humphery in 1960’s it has stood the test of time and still effective as it was in 60’s and 70’s.
• It’s simplicity allows anyone to participate without prior knowledge of the methods and encourages participation.
• It can be used to assess places, competitors, businesses and even to do self assessments.
• Clearly differentiates between internal ( strength/weaknesses ) and external ( opportunities/threats ) factors to help decision making.

Benefits of the SWOT Analysis

SWOT analysis helps businesses and organizations understand their current position in the market allowing to develop effective strategies to improve performance and stay competitive.

SWOT analysis provides the information needed to develop effective strategic plans. It helps organizations to focus on the most important issues and develop a roadmap for achieving their goals.

It helps businesses and organizations weigh the pros and cons of different strateggic options and choose the best course of action to achieve their objectives.

The SWOT analysis helps organizations identify potential risks to its operation early on and develop strategies to mitigate them and reduce their impact.

There are many more but these are the main reasons why you should choose SWOT over other methods. Keep in mind though that some specialized methods like BPMN offer different advantages.

Now you know what and why it’s time to learn how to use them effectively.

Here are the basic steps to conducting a SWOT analysis.

Identify the objective : The first step in performing a SWOT analysis is to clearly define the objective or goal that you want to achieve. This will help you focus your analysis and ensure that you are considering the right factors.

Gather a team of expertise : Choose team members who have the relevant expertise and knowledge to contribute to the analysis. This can include managers, employees, and subject matter experts.

Gather information : Collect information about your organization’s internal and external environment. This can include data on financial performance, customer demographics, industry trends, and competitors.

Identify strengths, weaknesses, threats and opportunities : Identify the strengths and weaknesses and opportunities and threats affecting your organization and add them to the relevant quadrant of the SWOT diagram.

Analyze the results : Analyze the results of your SWOT analysis to determine the key insights and trends. This can help you identify the most important factors to consider in developing a strategic plan.

Develop a strategic plan : Develop a strategic plan that builds on your organization’s strengths, addresses its weaknesses, takes advantage of opportunities, and mitigates potential threats. This can help you achieve your goals and stay competitive in your market.

Creating a SWOT Analysis Diagram

SWOT diagram comes in various shapes but the key thing is to list down the strengths, weaknesses, opportunities and threats in an easily identifiable manner. You can get started easily by using one of our professionally designed SWOT analysis template

You can modify any of those templates online using our SWOT analysis template . If you prefer there are some templates in PDF form so you can easily download and take a printout for offline usage. Below is a blank template you can start using immediately.

Now lets look at how to enter data to the SWOT diagram.

Adding Data to the SWOT Analysis Diagram

The first thing you can do is add strengths and weaknesses . Because they are internal factors they are generally easy to identify. Depending on what you’re using the SWOT diagram these factors can vary significantly.

In a business environment they can be:

• Human resources – size of your workforce, skill level of your employees, language barriers, geographical distribution
• Financial Situation – Capital, investment capacity, income, predicted profit, seasonal income
• Distribution – sales partners, regional distribution, supply chain efficiency production capabilities
• Operations – Efficiency of software, operation and implement cost of software, efficiency of reporting processes

Depending on the organization there can be many more areas that can be a strength or a weakness. For example for a company like Apple brand loyalty is a great strength while for Samsung it could be low production cost.

As mentioned above adding internal factors are somewhat easy. The hard part comes when adding external factors, opportunities and threats .

Fortunately there is a formal process called PEST analysis to assess those opportunities and threats. Check out our SWOT vs PEST article to learn about similarities and differences.

PEST stands for P olitical, E conomic, S ocial and T echnological factors. Sometimes it’s referred as PESTLE analysis with L egal and E nvironmental factors added to the mix.

PEST provides you a structured and a formal way to assess the opportunities and threats. Different departments can work on different areas and come up with the necessary data needed for the final SWOT diagram. For large projects there is simply no option but to direct these to different departments.

Below is a breakdown of different areas and some important factors in those areas.

• Political – Government stability, corruption levels, trade controls, import and export restrictions
• Economic – Exchange rates, interest rates, income levels of population, wealth distribution
• Social – Education levels, religious harmony, attitude towards health, social welfare programs
• Technological – Internet penetration, access to basic infrastructure, software piracy, technology competency of workforce
• Legal – Tax laws and regulations, labor laws and firing policies, copyright and anti-piracy laws
• Environmental – Weather patterns, attitude towards recycling, attitude towards organic and green products

Obviously all the factors don’t apply to every organization. For example if you’re selling computers then weather patterns might not interest you but they are definitely important if you’re selling rain coats.

SWOT analysis are used by decision makers who are part of the planning of a venture. So most of the time they’re used by managers and senior executives. But as I mentioned before they can be applied in many scenarios so almost anyone can be creating SWOT diagrams.

If it’s a large project then they are usually created during lengthy multiple meetings. Managers of different departments, senior level executives and many others might get together and work on the SWOT analysis.

• Businesses : Business owners and managers can use a SWOT analysis to assess their company’s internal and external environment, identify areas of improvement, and develop a strategic plan to achieve their goals.
• Individuals : Individuals can use a SWOT analysis to assess their own strengths and weaknesses, identify areas for personal growth, and make career or life decisions.
• Non-profit organizations : Non-profit organizations can use a SWOT analysis to evaluate their programs, fundraising strategies, and volunteer engagement.
• Governments : Governments can use a SWOT analysis to evaluate their policies and initiatives, identify areas for improvement, and develop plans to address community needs.

A software like Creately with it’s real-time collaboration tools helps teams to collaborate on SWOT diagrams easily while always visualizing the changes made by others. The revision history is preserved so it’s clearly visible who made the changes and this makes it easy to reverse decisions as well.

SWOT can be used to cater to hundreds of scenarios. Here’s a look at some common situations where SWOT analysis becomes very useful.

I personally feel personal SWOT analysis is underutilized. It’s a great way to prepare for an interview. Especially so if it’s an internal interview for a promotion and you know who you’re up against. This enables you to focus on your strengths and how those strengths align with opportunities for the company. And it helps to stay clear or talk less about your weaknesses. Check out this FORBES article for a in depth look at doing a personal SWOT analysis.

Another area where SWOT analysis is heavily used is marketing. Marketing is all about getting ahead of your competitors and knowing their strengths and weaknesses helps to focus your message and highlight the strong points.

For example in our case we’re the only diagramming software that offers an online solution and an offline desktop solution that syncs with each other. This is obviously useful for frequent travelers who want access to their diagram from anywhere in the world. And we make sure to highlight this in conferences and meet-ups. Check out this article about using SWOT in marketing to see how you can apply them to your marketing plans .

• To ensure a comprehensive analysis, involve a diverse group of stakeholders with varying perspectives and experiences. This can include employees, customers, partners, suppliers, and industry experts.
• Avoid bias and be honest when evaluating strengths, weaknesses, opportunities, and threats. This will help to identify potential blind spots and areas for improvement.
• Once you have identified your strengths, weaknesses, opportunities, and threats, prioritize actions based on impact and feasibility. Develop a plan of action to address the most critical issues.
• Use a simple and straightforward format that is easy to understand and communicate. This can be a table or a simple list.
• A SWOT analysis is not a one-time exercise. Continuously review and update your analysis to ensure it remains relevant and useful.

I hope this article has helped you to understand what SWOT analysis are, why it’s used around the world and how you can use it to make better decisions . As always if you have any question feel free to ask them in the comments.

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What are the common mistakes to avoid during a SWOT analysis??

Avoid being overly optimistic or pessimistic about the strengths, weaknesses, opportunities, and threats. This can lead to a biased analysis that is not based on facts and data.

Not involving key stakeholders. To get a comprehensive analysis, it is important to involve all key stakeholders.

Avoid analyzing too many factors or getting lost in details. Instead, focus on the most important factors that will have the greatest impact on your goals.

Confusing internal and external factors. Internal factors are within your control, while external factors are outside of your control. It is important to distinguish between these factors and address them accordingly.

Avoid ignoring potential threats or weaknesses. Identifying and addressing these issues can help to prevent problems and minimize risks.

How to gather resources for a SWOT analysis?

Refer and review internal data such as financial statements, employee feedback, customer reviews, and operational data. This can help you to identify your company’s strengths and weaknesses.

Conduct market research to gather information about your industry, competitors, and customers. This can help you to identify potential opportunities and threats.

Gather feedback from stakeholders such as employees, customers, partners, and industry experts. This can provide valuable insights and different perspectives.

Seek out expert opinions from industry analysts, consultants, and other professionals.

What is the difference between a SWOT analysis and TOWS analysis?

More related articles.

Software engineer turned tech evangelist. I handle marketing stuff here at Creately including writing blog posts and handling social media accounts. In my spare time, I love to read and travel.

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Swot analysis guide: powerful examples and a free template.

Table of Contents

What is a SWOT Analysis

Be sure to watch SmartDraw’s insightful video, ‘What is SWOT? Definition, Examples and How to Do a SWOT Analysis.’ It’s a great addition to our comprehensive SWOT Analysis Guide, reinforcing key concepts and showcasing practical examples. This video enhances your understanding and makes the whole process of performing a SWOT analysis more digestible and engaging.

What is the Goal of a SWOT Analysis?

Pros of swot analysis, cons of swot analysis, breaking down a swot analysis (strengths, weaknesses, opportunities, and threats), opportunities, external and internal factors, internal factors, external factors, home depot example, how do you do a swot analysis.

Step 1: Gather Data

Financial statements, employee feedback, step 2: brainstorm, step 3: analyze strengths, unique features, step 4: analyze weaknesses, improvements, decision-making, step 5: identify opportunities, step 6: analyze threats, step 7: construct an action plan + implement solutions, swot analysis template, swot analysis examples, swot analysis example: small business, marketing swot analysis, 3. company swot analysis example, swot analysis example for a restaurant, acting on your results, swot analysis tips, don’t be afraid, ask for feedback, be systematic, create timelines, learn business abbreviations and acronyms, the takeaways.

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Where do I find published SWOT analysis?

Databases for published swot analysis reports.

A SWOT analysis is a strategic planning tool that is used to assess the Strengths, Weaknesses, Opportunities, and Threats involved in an organization, business or a project.  A SWOT analysis is particularly useful in identifying both internal and external factors that are essential in decision-making.

There are not SWOT analyses available for all companies in these databases. If there has not been one published on your company, or if your company is a privately owned, you may need to put together a SWOT analysis yourself using information found in company reports in these databases. Look for reports on 2 or 3 larger public companies in the same industry.  For example, in the computer software industry, try Microsoft and Oracle .  Companies in the same industry will often use or adapt their own strengths to capitalize on another company's weaknesses.

NOTE:  A published SWOT analysis may be a good starting point for your company analysis, but DO NOT simply cut and paste from a published SWOT or SWOT graph/chart.  This is plagiarism. Do not risk your academic career but instead use a variety of sources to support your claims.

• Business Source Complete This link opens in a new window From the main search page, go to Company Information (at the top of the page), and search for your company. Open the company profile and click "SWOT Analyses" on the left side of the page. This will open a list of available SWOT analysis reports for that company, including older reports.
• LexisNexis Academic This link opens in a new window Click "Advanced Search" and click "Select a specific content type." Click "Company and Financial" and click "Company Profiles." On the Advanced Search form, you can to conduct a segment/field search. Using the Company and Publication segments, type “Home Depot” in the Company field. (Tip: To find an exact phrase, you must put the phrase in quotation marks.) Type SWOT in the Publication field. Click the Search icon. On the right side of the report you select, you have links to related business content available on Nexis Uni.
• Proquest This link opens in a new window From the main search bar, type in the name of your company and SWOT. Be sure to check the full-text box. You can change the date range using the slider bar on the left side to narrow down newer reports.
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SWOT Analysis 

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Home > Research Glossary > SWOT Analysis

What is SWOT analysis? 

SWOT analysis is a strategy used to assess the internal strengths and weaknesses , as well as external opportunities and threats, of a business, organization, or project. The name itself is an acronym of the four main elements in the analysis process.  

SWOT analysis is widely used across various industries and sectors, including business, marketing, healthcare , education, and nonprofit organizations . It is a valuable tool for assessing projects, formulating business strategies, conducting market research , and evaluating potential investments. 

The main elements of a SWOT analysis  

To conduct a SWOT analysis , businesses need to identify and evaluate each of the four components. Two components focus on the business internally while the others focus on outside factors that influence the organization: 

Strengths 

Strengths are Internal features and resources that give the organization a competitive edge or enhance its business objectives . Some common strengths are internal experts, advanced or proprietary technology, strong brand reputation , or unique product offerings. 

Weaknesses  

Weaknesses are internal factors that hinder the organization's performance or put it at a disadvantage compared to competitors. Common weaknesses may include limited financial resources, outdated technology, or lack of experienced staff. 

Opportunities 

Opportunities are external factors or trends the organization can leverage to reach its objectives. Analyzing opportunities allows businesses to capitalize on positive market conditions , new consumer trends, or emerging markets. 

Threats 

Threats are external factors that could negatively impact the organization's performance or stability. These could include increased competition, changes in laws, economic downturns , or unexpected major events or disruption .  

Advantages of SWOT analysis   

SWOT analysis provides several benefits for organizations: 

• Strategic planning: SWOT analysis allows organizations create effective strategies based on a comprehensive understanding of their internal capabilities and external environment.
• Decision making: By evaluating strengths, weaknesses, opportunities, and threats, organizations can make informed decisions about priorities, business goals, resource allocation, and other factors.
• Risk assessment: Identifying potential threats and weaknesses helps organizations proactively mitigate risks and safeguard their interests.
• Competitive advantage: Insights from a SWOT analysis enable organizations to position themselves differently from competitors and capitalize on their offerings. 

Disadvantages of SWOT analysis 

While a SWOT analysis is a valuable tool, it is not without its limitations, including: 

• Subjectivity: Individuals within an organization may have different perspectives on the same factors, leading to potential biases in the analysis or lack of agreement on next steps. 
• Lack of prioritization: Similarly, SWOT analysis does not inherently organize a strategy, which requires additional analysis and context. Subjectivity could make setting priorities difficult without this extra context. 
• Dynamic business environment: Businesses are constantly evolving, and factors that were strengths or opportunities in the past may become weaknesses or threats in the future. Therefore, SWOT analyses need to be repeated to remain current.
• Complex interdependencies: Factors in an organization are often interrelated and interconnected. Changes in one area may impact others, making it difficult to isolate and address specific issues.
• Overlooking internal culture: The organizational culture and employee mindset can significantly impact the success of strategic initiatives. It’s imperative to consider how the team will adapt to any changes and how it will impact company culture. 

Best practices for SWOT analysis implementation 

To implement a SWOT analysis structure successfully, organizations can take the following steps: 

• Involve diverse perspectives: Include stakeholders from different departments or levels—and with different backgrounds—to gather a broader range of insights and minimize biases.
• Seek external expertise: Consider seeking the input of industry experts, employing consultants , or conducting market research to obtain a more comprehensive understanding of the external landscape.
• Regular updates: Review and update the SWOT analysis regularly to reflect changes and emerging trends to keep up with the ever-changing business landscape.
• Integrate with other tools: Combine SWOT analysis with other strategic planning tools, such as PESTEL analysis or Porter's Five Forces, to gain a more comprehensive understanding of the business environment. Additionally, integrate specialized databases to your research to ensure you are getting accurate and up-to-date information.
• Prioritize and develop action plans: After identifying key steps, prioritize them based on their potential impact and feasibility.  

How to use LexisNexis for SWOT analysis  

LexisNexis provides research solutions that assist businesses and professionals in conducting SWOT analysis with accurate and up-to-date information, including news, legal documents, competitor data, industry reports, and market analysis. The advanced search capabilities and filters within Nexis ® Research Solutions make it easy to explore relevant data and uncover valuable insights to conduct a thorough and well-informed SWOT analysis.  

Easily and efficiently identify market trends, evaluate competitors, and assess industry dynamics to make strategic decisions based on a comprehensive SWOT analysis. 

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What Is SWOT Analysis?

Understanding swot analysis, how to do a swot analysis.

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Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential. A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, initiatives, or within its industry.

Key Takeaways

• SWOT analysis is a strategic planning technique that provides assessment tools.
• Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and new ideas.
• A SWOT analysis pulls information from internal sources (strengths or weaknesses of the specific company) and external forces that may have uncontrollable impacts on decisions (opportunities and threats).
• SWOT analysis works best when diverse groups or voices within an organization can provide realistic data points rather than prescribed messaging.
• The findings of a SWOT analysis are often synthesized to support a single objective or decision that a company is facing.

SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity.

Using internal and external data , the technique can guide businesses toward strategies more likely to be successful, and away from those in which they have been, or are likely to be, less successful. Independent SWOT analysts, investors, or competitors can also guide them on whether a company, product line, or industry might be strong or weak and why.

SWOT analysis was first used to analyze businesses. Now, it's often used by governments, nonprofits, and individuals, including investors and entrepreneurs. There is seemingly limitless applications to the SWOT analysis.

Components of SWOT Analysis

Investopedia / Julie Bang

Every SWOT analysis will include the following four categories. Though the elements and discoveries within these categories will vary from company to company, a SWOT analysis is not complete without each of these elements:

Strengths describe what an organization excels at and what separates it from the competition : a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to attract new investors.

Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.

Opportunities

Opportunities refer to favorable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share .

Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labor supply, and so on.

Analysts present a SWOT analysis as a square segmented into four quadrants, each dedicated to an element of SWOT. This visual arrangement provides a quick overview of the company’s position. Although all the points under a particular heading may not be of equal importance, they all should represent key insights into the balance of opportunities and threats, advantages and disadvantages, and so forth.

The SWOT table is often laid out with the internal factors on the top row and the external factors on the bottom row. In addition, the items on the left side of the table are more positive/favorable aspects, while the items on the right are more concerning/negative elements.

A SWOT analysis can be broken into several steps with actionable items before and after analyzing the four components. In general, a SWOT analysis will involve the following steps.

Step 1: Determine Your Objective

A SWOT analysis can be broad, though more value will likely be generated if the analysis is pointed directly at an objective. For example, the objective of a SWOT analysis may focused only on whether or not to perform a new product rollout . With an objective in mind, a company will have guidance on what they hope to achieve at the end of the process. In this example, the SWOT analysis should help determine whether or not the product should be introduced.

Step 2: Gather Resources

Every SWOT analysis will vary, and a company may need different data sets to support pulling together different SWOT analysis tables. A company should begin by understanding what information it has access to, what data limitations it faces, and how reliable its external data sources are.

In addition to data, a company should understand the right combination of personnel to have involved in the analysis. Some staff may be more connected with external forces, while various staff within the manufacturing or sales departments may have a better grasp of what is going on internally. Having a broad set of perspectives is also more likely to yield diverse, value-adding contributions.

Step 3: Compile Ideas

For each of the four components of the SWOT analysis, the group of people assigned to performing the analysis should begin listing ideas within each category. Examples of questions to ask or consider for each group are in the table below.

Internal Factors

What occurs within the company serves as a great source of information for the strengths and weaknesses categories of the SWOT analysis. Examples of internal factors include financial and human resources , tangible and intangible (brand name) assets, and operational efficiencies.

Potential questions to list internal factors are:

• (Strength) What are we doing well?
• (Strength) What is our strongest asset?
• (Weakness) What are our detractors?
• (Weakness) What are our lowest-performing product lines?

External Factors

What happens outside of the company is equally as important to the success of a company as internal factors. External influences, such as monetary policies , market changes, and access to suppliers, are categories to pull from to create a list of opportunities and weaknesses.

Potential questions to list external factors are:

• (Opportunity) What trends are evident in the marketplace?
• (Opportunity) What demographics are we not targeting?
• (Threat) How many competitors exist, and what is their market share?
• (Threat) Are there new regulations that potentially could harm our operations or products?

Companies may consider performing this step as a "white-boarding" or "sticky note" session. The idea is there is no right or wrong answer; all participants should be encouraged to share whatever thoughts they have. These ideas can later be discarded; in the meantime, the goal should be to come up with as many items as possible to invoke creativity and inspiration in others.

Step 4: Refine Findings

With the list of ideas within each category, it is now time to clean-up the ideas. By refining the thoughts that everyone had, a company can focus on only the best ideas or largest risks to the company. This stage may require substantial debate among analysis participants, including bringing in upper management to help rank priorities.

Step 5: Develop the Strategy

Armed with the ranked list of strengths, weaknesses, opportunities, and threats, it is time to convert the SWOT analysis into a strategic plan. Members of the analysis team take the bulleted list of items within each category and create a synthesized plan that provides guidance on the original objective.

For example, the company debating whether to release a new product may have identified that it is the market leader for its existing product and there is the opportunity to expand to new markets. However, increased material costs, strained distribution lines, the need for additional staff, and unpredictable product demand may outweigh the strengths and opportunities. The analysis team develops the strategy to revisit the decision in six months in hopes of costs declining and market demand becoming more transparent.

Use a SWOT analysis to identify challenges affecting your business and opportunities that can enhance it. However, note that it is one of many techniques, not a prescription.

Common Mistakes When Preparing SWOT Analysis

When preparing a SWOT analysis, several common mistakes can undermine its effectiveness. Let's take a look at some ways your SWOT analysis may go awry.

One easy error to make when preparing a SWOT analysis is failing to be objective and honest in the assessment. Companies often tend to overemphasize their strengths while downplaying weaknesses, resulting in an overly optimistic and unrealistic analysis. This bias can lead to missed opportunities for improvement and leave the organization vulnerable to unforeseen threats. As difficult as it may be to be honest in your analysis, the validity of underlying assumptions is the cornerstone of how useful the SWOT analysis will be.

Another significant mistake is conducting the analysis in isolation, without input from diverse key stakeholders . You should try get to input from employees at various levels, customers, suppliers, and industry experts. Each may have a unique view of your company, and each may come up with different items to be listed in each quadrant based on how they specifically interact with the company.

Yet another common pitfall is neglecting to prioritize or weight the factors identified in the SWOT analysis. Not all strengths, weaknesses, opportunities, and threats are equally important or impactful. Failing to distinguish between major and minor factors can lead to misallocation of resources and misguided strategic decisions. It can be easy for the important items to be buried if too many non-material items are identified.

Another frequent error is treating the SWOT analysis as a one-time exercise. You should be prepared to do a SWOT analysis periodically, The business environment is constantly changing, and a SWOT analysis should be regularly updated to remain relevant. In addition, the analysis itself is just the beginning; its true value lies in using the findings to develop and implement strategic actions. You can then check future SWOT analysis to make sure the company is addressing the major points.

Benefits of SWOT Analysis

A SWOT analysis won't solve every major question a company has. However, there's a number of benefits to a SWOT analysis that make strategic decision-making easier.

• A SWOT analysis makes complex problems more manageable. There may be an overwhelming amount of data to analyze and relevant points to consider when making a complex decision. In general, a SWOT analysis that has been prepared by paring down all ideas and ranking bullets by importance will aggregate a large, potentially overwhelming problem into a more digestible report.
• A SWOT analysis requires external considerations. Too often, a company may be tempted to only consider internal factors when making decisions. However, there are often items out of the company's control that may influence the outcome of a business decision. A SWOT analysis covers both the internal factors a company can manage and the external factors that may be more difficult to control.
• A SWOT analysis can be applied to almost every business question. The analysis can relate to an organization, team, or individual. It can also analyze a full product line , changes to brand, geographical expansion, or an acquisition. The SWOT analysis is a versatile tool that has many applications.
• A SWOT analysis leverages different data sources. A company will likely use internal information for strengths and weaknesses. The company will also need to gather external information relating to broad markets, competitors, or macroeconomic forces for opportunities and threats. Instead of relying on a single, potentially biased source, a good SWOT analysis compiles various angles.
• A SWOT analysis may not be overly costly to prepare. Some SWOT reports do not need to be overly technical; therefore, many different staff members can contribute to its preparation without training or external consulting.

SWOT Analysis Example

Let's perform a SWOT analysis together by analyzing the strengths, weaknesses, opportunities, and threats of Tesla.

• Strengths: Tesla has a strong position in the EV market because of its strong brand recognition as an industry pioneer. The company's advanced battery technology allows for superior range in its vehicles. Tesla's extensive Supercharger network also provides a significant advantage in terms of charging infrastructure.
• Weaknesses: Tesla has struggled with production capacity limitations, often failing to meet demand and delivery targets. Quality control issues have also been a recurring problem from time to time. Tesla's vehicles are generally priced higher than those of competitors, which may limit market penetration in more price-sensitive regions.
• Opportunities: Tesla stands to benefit from the growing global demand for electric vehicles. The company has opportunities to expand beyond automotive into related fields such as energy storage and solar power, leveraging its battery expertise. The development of autonomous driving technology also presents another significant growth avenue, as Tesla has already begun implementing self-driving cars. Additionally, Tesla has the potential to tap into large, emerging markets like China and India where EV adoption could accelerate where it hasn't already.
• Threats: The competitive landscape for Tesla is intensifying as traditional automakers and new entrants invest heavily in electric vehicle technology. This increased competition could erode Tesla's market share and profit margins. Economic factors such as economic downturns could impact sales of Tesla's primarily luxury-oriented vehicles. The company also faces risks related to supply chain disruptions, particularly for critical materials used in battery production where it may already have manufacturing constraints.

What Are the 4 Steps of SWOT Analysis?

The four steps of SWOT analysis comprise the acronym SWOT: strengths, weaknesses, opportunities, and threats. These four aspects can be broken into two analytical steps. First, a company assesses its internal capabilities and determines its strengths and weaknesses. Then, a company looks outward and evaluates external factors that impact its business. These external factors may create opportunities or threaten existing operations.

How Do You Write a Good SWOT Analysis?

Creating a SWOT analysis involves identifying and analyzing the strengths, weaknesses, opportunities, and threats of a company. It is recommended to first create a list of questions to answer for each element. The questions serve as a guide for completing the SWOT analysis and creating a balanced list. The SWOT framework can be constructed in list format, as free text, or, most commonly, as a 4-cell table, with quadrants dedicated to each element. Strengths and weaknesses are listed first, followed by opportunities and threats.

Why Is SWOT Analysis Used?

A SWOT analysis is used to strategically identify areas of improvement or competitive advantages for a company. In addition to analyzing thing that a company does well, SWOT analysis takes a look at more detrimental, negative elements of a business. Using this information, a company can make smarter decisions to preserve what it does well, capitalize on its strengths, mitigate risk regarding weaknesses, and plan for events that may adversely affect the company in the future.

What Are the Limitations of SWOT Analysis?

While SWOT analysis is a powerful tool, it does have some limitations. It can sometimes oversimplify complex situations and is susceptible to the subjectivity and bias of participants. The analysis also doesn't provide specific guidance on how to address identified issues and can lead to analysis paralysis if not followed by concrete action.

A SWOT analysis is a great way to guide business-strategy meetings. It's powerful to have everyone in the room discuss the company's core strengths and weaknesses, define the opportunities and threats, and brainstorm ideas. Oftentimes, the SWOT analysis you envision before the session changes throughout to reflect factors you were unaware of and would never have captured if not for the group’s input.

A company can use a SWOT for overall business strategy sessions or for a specific segment such as marketing, production, or sales. This way, you can see how the overall strategy developed from the SWOT analysis will filter down to the segments below before committing to it. You can also work in reverse with a segment-specific SWOT analysis that feeds into an overall SWOT analysis.

Although a useful planning tool, SWOT has limitations. It is one of several business planning techniques to consider and should not be used alone. Also, each point listed within the categories is not prioritized the same. SWOT does not account for the differences in weight. Therefore, a deeper analysis is needed, using another planning technique.

Business News Daily. " SWOT Analysis: What It Is and When to Use It ."

Tesla. " Supercharger ."

Reuters. " Tesla Quarterly Deliveries Decline for the First Time in Nearly Four Years ."

Tesla. " Autopilot and Full Self-Driving Capability ."

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Industry SWOT Analysis: The Right Metrics to Fuel Your Growth

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No man is an island. That classic saying also applies to analysis. Just as humans struggle on their own, data analysis and company growth are virtually impossible to achieve with your data alone.

When you’re analyzing your internal strengths, weaknesses, opportunities, and threats in a SWOT analysis , having access to the industry data keeps you connected to the bigger picture and provides key information about external opportunities to optimize your business plan .

In an industry SWOT analysis, you focus on your larger industry with company and market research . The metrics important to your industry are going to be different from others. In this article, we’ll break down SWOT analysis using a few key industries as examples – marketing, media and publishers, retail, and gaming. We’ll show how you can use industry traffic and web metrics effectively to accelerate your strategy.

We’ll also provide hands-on examples based on accurate benchmarks to inform your strategic planning process.

Questions to ask in a digital marketing industry SWOT analysis

Gaining a competitive advantage over your rivals and industry starts with asking the right questions and metrics.

This lets you manage your growth with more confidence and less guesswork. With the right metrics and data, you can be more proactive and less reactive. Instead of simply following market trends, you can create and influence them in accordance with your company’s needs.

Here are some of the questions to kickstart a digital marketing industry SWOT analysis:

• How is my company performing relative to my competitors?
• What can I learn from my competitor’s strategy?
• What is the industry standard, and am I above, below, or average?
• How can I use data to identify new growth opportunities or product lines?
• Which trends can I use to my team members’ advantage?

In the following paragraphs, we’ll present you with some industry examples, including actual benchmark data, so you’ll see how the industry SWOT analysis works.

A SWOT analysis template can help you keep track of your company’s strengths and external environment over time. Download our free, easy-to-use template now.

Metrics for the media and publishers industry SWOT analysis

Online media sites thrive on traffic volume. Publishers want visitors to spend enough time-consuming content on multiple pages. The metrics you’ll monitor for this industry are therefore different from others, which might focus more on conversion.

For effective strategic management, you’ll want to know where your traffic is coming from and which devices people use to access your site. Characterizing your audience according to website demographics and behavior is equally useful.

To get an idea of where these numbers position you in the market, let’s look at some significant industry benchmarks.

• Most get their news on mobile devices – A little more than 60% access news sites on mobile devices and less than 40% on desktop. When comparing year-over-year, we see this is an ongoing trend, and the gap keeps widening.
• Direct traffic dominates. Direct traffic makes up 65% of all news traffic. Next in line is organic traffic with 23%. The direct traffic market share is growing at the expense of organic traffic and paid search remains relatively insignificant. Social media also became a strong traffic driver in 2020.
• News websites traffic is highly related to specific languages and regions. You need to access relevant numbers for your country from a platform like Similarweb where you can see data breakdown by audience geography . For example, in the U.S., people spend on average 5:33 minutes per visit on a news site and view four pages on average. In Russia, on the other hand, the average visit duration is half of that. To run an effective SWOT analysis, you need to hone in on the right metrics.

To see how this translates into a typical business model in the practice of strategic decision-making, let’s look at an example. We’ll imagine you run a major metropolitan news site in California, such as the Los Angeles Times, and publish both local and international news.

• Strengths – Your numbers show that your traffic share in California is high, and you are ranking third among the top sites for the state.
• Weaknesses – An analysis of demographics  with Similarweb’s unique visitors tool reveals that the share of millennials among your audience is low compared to your direct competitors.
• Opportunities – You identify that keywords related to the film industry bring a lot of visitors to your section on Hollywood.
• Threats – Leading sites grab more and more traffic with sophisticated apps. The device split reveals that people spend less time on your mobile app than average for the industry.

The key takeaways: Targeting keywords of Hollywood-related news about stars that are popular with millennials can help you capitalize on your opportunity with the millennial audience. Using Similarweb’s keyword research tools , you can find the specific keywords and trending topics that drive traffic to competitors’ sites and find the ones you should optimize.

You can also think about expanding social media platforms to attract younger readers. This industry SWOT analysis can be integrated into your strategic plan regularly.

Retail industry SWOT analysis plus benchmarks

eCommerce conversion rate is the number one metric to monitor if you’re a CPG or retail business.

After all, the better your conversion rate (CVR), the more revenue. To understand why you are or are not reaching your business planning goals, you need to deep-dive into the conversion funnel . Pinpoint the relevant metrics that represent your funnel stages and discover where you get prospects to engage and where you lose them.

Then benchmark to see what is considered normal in this category.

Here’s what your industry benchmarks tell you:

• Conversion rates grew 42% for your industry in the past year. You are in a rapidly growing industry. Visits to online shopping sites increased almost 10% in the past month. This presents a strong opportunity but also a considerable challenge to keep growing with the market.
• Amazon is the industry leader. The retail giant receives almost a third of the U.S. traffic, but only 9% when looked at globally.
• Organic traffic share is +30%, higher than in other categories. Direct traffic is the strongest channel though. Paid search yields relatively high traffic volume in the U.S., and the number is increasing. Also, email marketing seems to play a more significant role in eCommerce in the U.S. than elsewhere.
• Conversion rates also vary considerably across countries. Germany and the U.K. have the highest CVR with over 10%. The global average is 6.6%, but only the top 10 countries make it over 4%.
• CVR also varies per product category. Essentials reach the highest numbers, with groceries leading by far, followed by health and household items, pet supplies, and beauty care.
• Mobile use keeps steadily increasing, compared to desktop, and is at 60% in March 2021.

How can you use competitive benchmarks in your SWOT analysis? You’d define your type of company and compare your data to similar companies in size, location, and shopping category.

Let’s say you’re a retail startup for pet foods and supplies and have only recently launched your eCommerce site in the U.S. (for now). You compare your data to sites like chewy.com , petco.com , and petsmart.com .

• Strengths – Your overall growth in traffic and conversion rate exceeds the industry. Try to find out what it is that works well in your marketing and business environment.
• Weaknesses – You identify the number of return visits is low compared to the competition, and you need to start working on customer loyalty. Having learned from the industry benchmarks that email marketing is an effective tool in eCommerce in the U.S., you decide to create campaigns for retention marketing.
• Opportunities – Analytics show you receive traffic from non-English-speaking countries. Might this be a sign that you can already venture into new markets?
• Threats – You see new sites popping up and quickly growing their share over the past months. You need to keep an eye on your competition. Someone could suddenly barge in and capture your audience.

Gaming industry SWOT analysis

A good gaming site is one that people stick to and find various video games they enjoy spending time on.

At the same time, you need to keep drawing in new users. To evaluate your success, you’ll explore stickiness and engagement metrics alongside the performance of your new products’ marketing channels.

One of the unique challenges for gaming sites is graphics on mobile devices, so device use is another internal factor to follow to keep your business strategy on track.

Here’s what the industry benchmarks tell you:

• Total visits to gaming sites grew 23% in the past year. We can attribute this trend partially to COVID-19, and there’s no sign of it dying down.
• The stickiness index for the top sites worldwide is 21%. Stickiness divides unique visitors by total visits to determine how often a user accesses your site on average during a month.
• The average visit duration is slightly above eight minutes, and people access on average seven pages per visit. Interesting to notice that twitch.tv , the site with the highest traffic share in the set, falls short in visit duration and pages per visit.
• Gamers prefer desktops. The device split in 2020 was 65%–35% in favor of desktop for the top 100 sites, compared to 68%–32% the previous year.
• Direct traffic dominates. It makes up 70% of the total traffic to gaming sites . The figure has grown at the expense of other traditional channels in a year-over-year analysis. Only the social media traffic remained unchanged.

For a SWOT analysis example, let’s imagine you are running one of the leading free gaming sites.

• Strengths – Figures show that people spend more time on yours than on other gaming sites. Your games are highly engaging and last longer than average. Your product is also quite sticky.
• Weaknesses – Most of your users are returning users, and your organization’s strengths rely on stickiness (i.e., organic and direct traffic). However, you are not attracting enough new users.
• Opportunities – To figure out why you’re not bringing in new gamers, you review your web traffic sources and discover that similar sites – of both large and small businesses –get more traffic from paid search. You can now learn from your competition and utilize this channel stronger.
• Threats – The majority of users play on desktops. Although this is common in the industry, you need to keep an eye on the trend. Competition is rapidly developing new games and could come up with new genres that might reverse the trend.

Where to find data for your industry SWOT analysis

Similarweb’s research analytics tool provides the most comprehensive data set to compare your performance metrics to industry leaders , your industry average, or a selection of competitors. You can drill down into the specific metrics that matter for your industry and automatically get the percentage of your traffic share (with no math required).

Similarweb makes benchmarking using real-time accurate data seamless.

Try Similarweb’s Research Intelligence now and upgrade your industry SWOT analysis for better strategizing.

This blog post was written by Ruth M. Trucks .

What are the SWOT for industry?

The SWOT analysis of an industry uncovers internal and external factors that influence a company’s performance. Threats and opportunities are considered external factors, while strengths and weaknesses are often internally related.

What are the threats in business?

Some examples of threats in business include financial issues, economic uncertainty, and attracting and retaining talent.

by Molly Winik

Senior Content Marketing Manager

Molly has 8+ years of experience in marketing, content creation, and PR. Her work has been featured on Mention, The Times of Israel, and Culture Trip.

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SWOT Analysis

All business students are assigned to conduct SWOT analysis, usually at the earlier stages of their studies. This page focuses on the application of SWOT analysis in a business context as a part of academic assignments . This is a comprehensive SWOT resource and it contains an explanation of SWOT theory, an illustration of how to do a SWOT analysis and links to examples of SWOT analysis of major multinational brands. Moreover, SWOT analysis template further below can be used to generate SWOT tables of top multinational companies along a range of industries.

SWOT Analysis: Theory

SWOT is a strategic analytical tool for assessing strengths and weaknesses of a business, analyzing opportunities available to the business, as well as, threats faced by the business. SWOT analysis can be used at organizational and personal levels.

As it is illustrated below, strengths and weaknesses are internal, i.e. businesses are able to influence and to manipulate with their strengths and weaknesses. Opportunities and threats, on the other hand, are external. It means businesses can only react to opportunities and threats and they do not have any means to influence opportunities and threats.

SWOT analysis has important practical implications. Specifically, with findings of SWOT analysis in their hands, the senior level management identify and built upon their strengths, discover new opportunities and work upon eliminating or minimising threats to the business. Accordingly, SWOT can be a powerful aid for senior level management to develop appropriate strategy for the business.

As a strategic analytical tool, SWOT analysis has some weaknesses as well. Specifically, the application of this tool may encourage users to focus on quantity of factors, instead of focusing on a few, but the most powerful factors having the biggest impact on the business. In other words, SWOT analysis lacks guidance and provision in terms of differences in importance between factors. As a result weak strengths may appear to balance strong weaknesses.

The majority of sources explaining SWOT analysis assume that their audience is businesses aiming to improve their operational efficiency. This SWOT analysis resource is different. It explains SWOT analysis assuming that you a business student and you have been assigned to conduct SWOT analysis as a part of your assignment.

How to do SWOT Analysis

You can conduct a SWOT analysis with the following four steps:

Step 1: Selecting a company

If your assignment requires conducting a SWOT analysis, you are either given a case study company by your educational institution or you are free to analyze a company of your own choice. In the first scenario, you have no option but to conduct a SWOT analysis of the company named in your assignment instructions. However, the majority of educational institutions provide students the flexibility to conduct SWOT analysis of a company of their own choice.

Students are often tempted to conduct SWOT analysis of their employer. Choosing your employer as a case study can be a good strategy if you have an access to detailed relevant information. Please note that only descriptive information would not suffice and you will have to justify your arguments by referring to relevant quantitative data. Therefore, if you are not able to find relevant quantitative data about your employer, your best choice could be to conduct SWOT analysis of a multinational enterprise. This is due to the availability of data about the majority multinational enterprises. This portal offers up-to-date sample SWOT analyses of the most famous multinational enterprises as part of company reports .

Step 2: Finding information

If you are conducting a SWOT analysis of a small or medium sized organization such as your employer, family business or a company you are related to in some ways, approaching the company directly may prove to be an efficient strategy to obtain required information. You may try to secure a meeting with a senior level manager and explain practical implications of your SWOT analysis for the business. In other words, you may be able to convince a senior manager that results of your SWOT analysis may provide an important insight into the business and managers can act upon this knowledge to increase the efficiency of the business at various fronts.

Alternatively, if you are conducting SWOT analysis of a multinational enterprise, company annual report is usually the most comprehensive source of the relevant information. Note that annual reports highlight information about strengths of the business within the first few pages and you cannot find information about weaknesses of a company in its annual report for obvious reasons.

Information about Strengths in SWOT Analysis

Information about strengths of the company is easiest to find in your SWOT analysis. Strengths are competitive advantages of the business that made it successful in the first place. In case of small or medium sized organizations, the manager you are interviewing will be happy to discuss the strengths of the business.

In case of multinational companies, on the other hand, the first few pages of annual reports boast about competitive advantages of the business by referring to specific figures and charts. Using some of these charts in your assignment and properly referencing the source is going to increase the quality of your work.

You can determine strengths of businesses in answers to the following questions:

• What advantages does the company have?
• What does the company better than its competitors?
• What unique or low-cost resources are available to the company that are not available to its rivals?
• What Unique Selling Propositions (UPS) are associated with the company?

The following table illustrates the major strengths possessed by businesses and tips about how to discuss these strengths in your swot analysis:

Information about Weaknesses in SWOT Analysis

It may not be easy to find information about weaknesses of small and medium sized businesses. The manager you are interviewing may not want to discuss weaknesses of their business either intentionally, or they may not be aware of weaknesses. It is important for you to motivate your interviewee to discuss weaknesses of their company by asking relevant questions in a polite way.

It is easier with multinational organizations. An extensive online research can reveal relevant information about weaknesses associated with the company you are analyzing.The majority of big corporations have been involved in some kind of scandals during the past two years and you can discuss the damage of these scandals to the brand image as noteworthy weakness of the company.

For example, suppose you have chosen Coca Cola Company for your SWOT analysis assignment. If you google the term ‘Coca Cola scandal’, search results on the top relate to a scandal where the company funded obesity research that downplayed the negative health implications of Coca Cola products. Negative implications of this incident on Coca Cola brand image is brand’s weakness you can discuss in you SWOT analysis.

All arguments and numbers need to be referenced using referencing style required by your educational institution in an appropriate manner. Preference has to be given to online journals and magazines over online discussion forums and personal blogs.

Answers to the following questions can help to identify weaknesses of your case study company:

• What aspects of the business could the company improve?
• What should the company avoid?
• What factors are causing the company to lose sales?
• What aspects of products/services are customers are likely to see as weaknesses?

Major weaknesses of businesses and brief tips about discussing them in your assignment are illustrated in the following table:

Information about Opportunities in SWOT Analysis

Information about opportunities available to the business can be derived from its weaknesses in a way that businesses often have an opportunity to turn their weaknesses into strengths. At the same time, it is important that your SWOT analysis also identifies a set of opportunities that are not related to weaknesses. If you can’t think of any company-specific opportunities, you can discuss business opportunities that can be explored by any business in general, such as new product development, international market expansion and increasing the level of effectiveness of social media marketing. Interesting trends in the industry can also be opportunities for the business.

Opportunities can be identified through answering the following questions:

• What are interesting trends in the market that can be profitably explored by the company?
• What are the demographic and social changes that present new opportunities in the industry?
• Are there any government policies and regulations that can help the industry?
• Are there any opportunities for the company related to technological developments?

The following table illustrates the major opportunities available for businesses and tips about how to discuss these opportunities in your SWOT analysis:

Information about Threats in SWOT Analysis

Threats faced by the business can be classified into two categories. Firstly, there are company-specific threats that stem from company-specific factors such as the threat of losing market share due to ineffective cost structure or the threat of negative media coverage and damage to the brand image due to neglecting the importance of corporate social responsibility. Secondly, there are threats to the industry or to the economy on the whole, such as a threat of introducing tariffs to a certain range of products or the threat of a global economic and financial crisis. You will need to find information about threats belonging to both categories with more emphasis on the threats from the first category, i.e. company-specific threats.

You can identify the main threats to the business through answering the following questions:

• What are the main obstacles faced by the company?
• What are the latest developments in competitor Unique Selling Propositions?
• Does the company have substantial amount of bad debts or cash-flow problems?
• Was the company involved in any scandal recently?

Main threat facing the majority of businesses and brief tips about discussing them in your SWOT analysis are illustrated in the following table:

Step 3: Writing

You can structure your writing of SWOT analysis in the following way:

Firstly, you will need to discuss the company profile, its strategy and the most recent changes that have taken place in the company prior to presenting your SWOT analysis. The length of such a discussion depends on your assignment instructions and the total word count for your assignment.

Secondly, develop a SWOT Analysis Matrix for your chosen company. You can develop a table containing four sections headed strengths, weaknesses, opportunities and threats. Major strengths, weaknesses, opportunities and threats of your chosen company can be presented in bullet points under respective boxes. These should be precise and verifiable statements.

Using steps 1 and 2 above, you should have long list of factors related to strengths, weaknesses, opportunities and threats for the business. Now it is time to prioritize factors to be included in your SWOT analysis by focusing on the most significant factors. The numbers of factors that should be discussed under each category depends on the total word-count for your assignment.

Thirdly, you have to discuss bullet points in your SWOT table. Your analysis needs to contain statistical data and ideally graphs and tables as well. Do not forget to reference sources, using referencing system  required by your university. Moreover, you can discuss how to address weaknesses and threats identified as a result of your SWOT analysis and get additional marks for your work.

SWOT Analysis Example

This portal contains example SWOT analysis of the following companies:

SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations. The following table illustrates SWOT analysis:

SWOT Analysis Template

Please choose an industry and a company below to generate a SWOT table containing bullet points of strengths, weaknesses, opportunities and threats of your chosen company. In order to complete the SWOT analysis you will need to expand the bullet points into a couple of paragraphs with discussions and references from reliable sources to support your arguments.