A SWOT analysis is a useful tool to help organizations understand both their internal Strengths and Weaknesses along with the external Opportunities and Threats that affect their organizations. It can be used in strategic planning or as an effective tool in analyzing a project objective. It helps you build on what you do well, address what you’re lacking, to minimize risks, and take the greatest possible advantage of chances for success. The primary objective is to help organizations develop a full awareness of all the factors involved in making a business decision.
Strengths and weaknesses provide an introspective view and should not be considered opposites. Organizations must evaluate those areas where they have the knowledge and capability to do the job and understand those areas where they are the weakest and put a plan together to improve in those areas. The improvement plan should then concentrate on hiring the knowledge needed or obtaining the technology required.
Opportunities and threats, on the other hand, look outside the organization. In this analysis, we try to identify opportunities and threats to the organization.
Examples of strengths that might be used in a SWOT analysis are:
- Talent
- Knowledge
- Scale
- Speed
- Innovation
- Location
- Brand
- Quality
- Technology
- Reputation
Examples of weaknesses that might be used are:
- Supply chain
- Target market
- Information security
- Infrastructure
- Business model
- Reputation
Examples of opportunities are:
- Demographics
- Distribution
- Partnerships
- Environment
- Mergers and acquisitions
Examples of threats are:
- Competition
- Market entry
- Customer service
- Quality
- Customer perception
- Customer needs
Here is an example of a simple SWOT analysis for a higher-education institution that is experiencing declining enrollment in two major cities where they are located.
