swot analysis in a business plan example

– 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!

Related articles.

The Beginner's Guide to the Competitive Matrix [+ Templates]

What is a Competitive Analysis — and How Do You Conduct One?

9 Best Marketing Research Methods to Know Your Buyer Better [+ Examples]

28 Tools & Resources for Conducting Market Research

Market Research: A How-To Guide and Template

TAM, SAM & SOM: What Do They Mean & How Do You Calculate Them?

How to Run a Competitor Analysis [Free Guide]

5 Challenges Marketers Face in Understanding Audiences [New Data + Market Researcher Tips]

Causal Research: The Complete Guide

Download a free SWOT analysis template in our free market research kit.

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

Expert business plan and financial models

How to Write a SWOT Analysis for a Business Plan

• September 4, 2024
• Business Plan , How to Write

Navigating the complexities of business requires a clear understanding of your strategic position, and a SWOT analysis is an essential tool to help you achieve this clarity. It’s a straightforward method that breaks down into Strengths, Weaknesses, Opportunities, and Threats, providing a snapshot of where your business stands and guiding your future strategic moves.

With this guide, you’ll learn how to leverage your advantages, address challenges, seize new opportunities, and guard against potential threats. Let’s dive into the process together and set a strong foundation for your business’s strategic planning. Let’s dive in!

What is a SWOT Analysis?

A SWOT analysis is a strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. This method helps organizations in assessing both internal and external factors that could impact their objectives.

• Strengths : Positive attributes internal to the organization and within its control. Strengths are resources and capabilities that can be used as a basis for developing a competitive advantage.
• Weaknesses : Factors that are within an organization’s control but detract from its ability to attain the desired goal. These are areas the business needs to improve to remain competitive.
• Opportunities : External chances to improve performance in the environment. Opportunities reflect the potential you can leverage to grow your business or project.
• Threats : External challenges to the business’s performance or project’s success. Threats might stem from various sources, such as economic downturns, increased competition, or changes in regulatory landscapes.

Why Use a SWOT Analysis?

We use a SWOT analysis for several important reasons in business and strategic planning:

• Strategic Overview : It provides a concise and comprehensive overview of the current strategic position of the business or project. By examining internal and external factors, stakeholders can get a clear picture of their situation.
• Decision Making : SWOT analysis aids in decision-making by highlighting the strengths to leverage, weaknesses to address, opportunities to pursue, and threats to mitigate. It helps in prioritizing actions based on the analysis.
• Opportunity Identification : SWOT analysis is instrumental in identifying new opportunities for growth and expansion. Opportunities might come from market trends , economic shifts, or changes in technology.
• Risk Management : By identifying threats, organizations can develop strategies to address or mitigate these risks before they become significant issues. It’s a proactive approach to managing potential external challenges.
• Resource Allocation : Understanding the organization’s strengths and weaknesses helps in the effective allocation of resources. Resources can be directed to areas where they are needed most or where they will have the highest impact.
• Competitive Advantage : It helps businesses identify unique features and capabilities that give them a competitive edge in the market. Recognizing these strengths can guide marketing strategies and business development.

How to Write a SWOT Analysis

Writing a strength in a SWOT analysis involves identifying and articulating the internal attributes and resources of a business or project that contribute to its success and competitive advantage. Here’s how to effectively write a strength in a SWOT analysis:

• Identify Internal Positive Attributes : Focus on internal factors that are within the control of the business. These can include resources, skills, or other advantages relative to competitors. Consider areas like strong brand reputation, proprietary technology, skilled workforce, financial resources, strategic location, and efficient processes.
• Be Specific and Relevant : General statements like “we have a good team” are less helpful than specific ones like “our team includes industry-recognized experts in X field.” The more precise you are, the more actionable your analysis will be. Ensure that the strengths are directly relevant to achieving the business’s goals and objectives.
• Use Quantifiable Data When Possible : Whenever you can, back up your strengths with quantifiable data. For example, “a customer satisfaction rate of 95%” or “a 20% lower production cost than industry average” provides concrete evidence of your strengths.
• Compare to Competitors : Strengths are often relative to the competition. Identify areas where your business outperforms competitors or fills a gap in the market. This might involve superior product quality, a unique service model, or a more extensive distribution network.

Example: Instead of simply stating “Experienced management team” as a strength, you could write: “Our management team has over 50 years of combined experience in the tech industry, including a track record of successful product launches and market expansions. This depth of experience provides us with strategic insights and operational expertise that have consistently resulted in market share growth and above-industry-average profitability.”

Writing a weakness in a SWOT analysis involves acknowledging and detailing the internal factors that limit or challenge your business or project’s ability to achieve its goals. Here’s a structured approach to effectively articulate weaknesses in a SWOT analysis:

• Identify Internal Limitations : Focus on internal attributes that are within the control of the organization but currently act as disadvantages. Weaknesses might include insufficient resources, lack of expertise, outdated technology, poor location, limited product range, or inefficiencies in processes.
• Be Specific and Honest : It’s important to be honest and specific about your organization’s weaknesses. Vague statements won’t help in addressing these issues. For instance, rather than saying “we need to improve our marketing,” specify “our current marketing strategy does not effectively reach our target demographic of 18-25-year-olds on digital platforms.”
• Use Internal Comparisons and Feedback : Compare your performance, processes, and resources against your own past performance or industry benchmarks. Utilize customer feedback, employee insights, and performance data to identify areas of weakness.
• Keep it Constructive : While it’s crucial to be honest about weaknesses, frame them in a way that focuses on potential for improvement. Consider each weakness as an area for development and growth.

Example: Instead of a broad statement like “Inadequate online presence,” a more effective description would be: “Our business currently lacks a robust online presence, reflected in our outdated website and minimal engagement on key social media platforms. This limits our ability to attract younger demographics who predominantly discover and interact with brands online. Improving our online visibility and engagement could enhance brand awareness and customer acquisition.”

Opportunities

Writing opportunities in a SWOT analysis involves identifying and articulating external factors that your business or project could exploit to its advantage. Opportunities are elements in the environment that, if leveraged effectively, could provide a pathway for growth, improvement, or competitive advantage. Here’s how to systematically approach writing opportunities in your SWOT analysis:

• Spot External Trends : Focus on the trends and changes outside your organization that could be beneficial. These might include technological advancements, shifts in consumer behavior, market gaps, regulatory changes, or economic trends.
• Be Relevant and Actionable : Ensure that the opportunities you identify are relevant to your business and actionable. They should align with your business’s strengths and capabilities, allowing you to take practical steps toward capitalizing on them.
• Use Market Research : Base your identification of opportunities on solid market research. Understand your target market , industry trends, and the competitive landscape to pinpoint where the real opportunities lie.
• Detail Potential Benefits : Clearly articulate how each opportunity could benefit your business. Whether it’s entering a new market, launching a new product line, or adopting new technology, explain the potential impact on your business growth and success.

Example: Rather than vaguely stating “New market segments,” a more strategic description of an opportunity could be: “With increasing consumer interest in sustainable living, there’s a growing market segment for eco-friendly products. Our business’s strong commitment to sustainability and existing lineup of environmentally friendly products positions us well to capture this emerging market. Expanding our product range to include more items that cater to eco-conscious consumers can tap into this trend, potentially opening up new revenue streams and enhancing our brand’s reputation as a leader in sustainability.”

Writing threats in a SWOT analysis involves identifying external challenges that could pose risks to your business or project’s success. These are factors outside your control that have the potential to harm your operations, financial performance, or strategic positioning. Addressing threats effectively in a SWOT analysis requires a focused approach:

• Identify External Challenges : Start by pinpointing the external factors that could negatively impact your business. This can include new competitors entering the market, changes in consumer preferences, technological advancements that render your product less desirable, regulatory changes, or economic downturns.
• Be Precise and Realistic : Clearly define each threat in specific terms, avoiding vague descriptions. Being realistic about the level of risk each threat poses is crucial; not every external challenge is a dire threat, but understanding the potential impact is key for strategic planning.
• Assess the Impact : For each threat identified, evaluate how it could impact your business. Consider the worst-case scenario and more likely outcomes to gauge the potential severity of the threat. This helps in prioritizing which threats need immediate attention and strategic response.
• Use Reliable Sources : Base your identification of threats on solid, reliable information. This might include industry reports, economic forecasts, and news sources that provide insights into market dynamics and external conditions.
• Consider Your Weaknesses : Link potential threats to your identified weaknesses. Understanding how external threats could exploit your vulnerabilities offers valuable insights for fortifying your business against these challenges.

Example: Instead of broadly stating “Economic uncertainty,” a more actionable description of a threat would be: “The looming economic downturn poses a significant threat to discretionary consumer spending. Given our business’s reliance on non-essential luxury products, a reduction in consumer spending could directly impact sales. This economic uncertainty requires us to diversify our product offerings and identify more value-oriented options to maintain customer engagement and spending during tighter economic conditions.”

Related Posts

How Much It Costs to Start a Yoga Studio: Examples & Budget

• September 13, 2024
• Startup Costs

How Much It Costs to Start a Barbershop: Examples & Budget

Spa Industry Statistics From 2,260 Real Spas (2024)

• September 12, 2024
• Industry Stats

Privacy Overview

• Product overview
• All features
• Latest feature release
• App integrations
• project icon Project management
• Project views
• Custom fields
• Status updates
• goal icon Goals and reporting
• Reporting dashboards
• asana-intelligence icon Asana AI
• workflow icon Workflows and automation
• portfolio icon Resource management
• Capacity planning
• Time tracking
• my-task icon Admin and security
• Admin console
• Permissions
• list icon Personal
• premium icon Starter
• briefcase icon Advanced
• Goal management
• Organizational planning
• Project intake
• Resource planning
• Product launches
• View all uses arrow-right icon

• Work management resources Discover best practices, watch webinars, get insights
• Customer stories See how the world's best organizations drive work innovation with Asana
• Help Center Get lots of tips, tricks, and advice to get the most from Asana
• Asana Academy Sign up for interactive courses and webinars to learn Asana
• Developers Learn more about building apps on the Asana platform
• Community programs Connect with and learn from Asana customers around the world
• Events Find out about upcoming events near you
• Partners Learn more about our partner programs
• Asana for nonprofits Get more information on our nonprofit discount program, and apply.
• Project plans
• Team goals & objectives
• Team continuity
• Meeting agenda
• View all templates arrow-right icon
• Project management |

SWOT analysis: Examples and templates

A SWOT analysis helps you identify strengths, weaknesses, opportunities, and threats for a specific project or your overall business plan. It’s used for strategic planning and to stay ahead of market trends. Below, we describe each part of the SWOT framework and show you how to conduct your own.

Whether you’re looking for external opportunities or internal strengths, we’ll walk you through how to perform your own SWOT analysis, with helpful examples along the way. 

What is a SWOT analysis?

A SWOT analysis is a technique used to identify strengths, weaknesses, opportunities, and threats for your business or even a specific project. It’s most widely used by organizations—from small businesses and non-profits to large enterprises—but a SWOT analysis can be used for personal purposes as well. 

While simple, a SWOT analysis is a powerful tool for helping you identify competitive opportunities for improvement. It helps you improve your team and business while staying ahead of market trends.

What does SWOT stand for?

SWOT is an acronym that stands for: 

Opportunities

When analyzed together, the SWOT framework can paint a larger picture of where you are and how to get to the next step. Let’s dive a little deeper into each of these terms and how they can help identify areas of improvement. 

Strengths in SWOT refer to internal initiatives that are performing well. Examining these areas helps you understand what’s already working. You can then use the techniques that you know work—your strengths—in other areas that might need additional support, like improving your team’s efficiency . 

When looking into the strengths of your organization, ask yourself the following questions:

What do we do well? Or, even better: What do we do best?

What’s unique about our organization?

What does our target audience like about our organization?

Which categories or features beat out our competitors?

 Example SWOT strength:

Customer service: Our world-class customer service has an NPS score of 90 as compared to our competitors, who average an NPS score of 70.

Weaknesses in SWOT refer to internal initiatives that are underperforming. It’s a good idea to analyze your strengths before your weaknesses in order to create a baseline for success and failure. Identifying internal weaknesses provides a starting point for improving those projects.

Identify the company’s weaknesses by asking:

Which initiatives are underperforming and why?

What can be improved?

What resources could improve our performance?

How do we rank against our competitors?

Example SWOT weakness:

E-commerce visibility: Our website visibility is low because of a lack of marketing budget , leading to a decrease in mobile app transactions.

Opportunities in SWOT result from your existing strengths and weaknesses, along with any external initiatives that will put you in a stronger competitive position. These could be anything from weaknesses that you’d like to improve or areas that weren’t identified in the first two phases of your analysis. 

Since there are multiple ways to come up with opportunities, it’s helpful to consider these questions before getting started:

What resources can we use to improve weaknesses?

Are there market gaps in our services?

What are our business goals for the year?

What do your competitors offer?

Example SWOT opportunities:

Marketing campaign: To improve brand visibility, we’ll run ad campaigns on YouTube, Facebook, and Instagram.

Threats in SWOT are areas with the potential to cause problems. Different from weaknesses, threats are external and ‌out of your control. This can include anything from a global pandemic to a change in the competitive landscape. 

Here are a few questions to ask yourself to identify external threats:

What changes in the industry are cause for concern?

What new market trends are on the horizon?

Where are our competitors outperforming us?

Example SWOT threats:

New competitor: With a new e-commerce competitor set to launch within the next month, we could see a decline in customers.

SWOT analysis example

One of the most popular ways to create a SWOT analysis is through a SWOT matrix—a visual representation of strengths, weaknesses, opportunities, and threats. The matrix comprises four separate squares that create one larger square. 

A SWOT matrix is great for collecting information and documenting the questions and decision-making process . Not only will it be handy to reference later on, but it’s also great for visualizing any patterns that arise. 

Check out the SWOT matrix below for a simple example. As you can see, each of the quadrants lists out the company's strengths, weaknesses, opportunities, and threats.

When used correctly and effectively, your matrix can be a great toolkit for evaluating your organization’s strengths and weaknesses. 

How to do a SWOT analysis, with examples 

A SWOT analysis can be conducted in a variety of ways. Some teams like to meet and throw ideas on a whiteboard, while others prefer the structure of a SWOT matrix. However you choose to make your SWOT analysis, getting creative with your planning process allows new ideas to flow and results in more unique solutions. 

There are a few ways to ensure that your SWOT analysis is thorough and done correctly. Let’s take a closer look at some tips to help you get started.

Tip 1: Consider internal factors 

Often, strengths and weaknesses stem from internal processes. These tend to be easier to solve since you have more control over the outcome. When you come across internal factors, you can start implementing improvements in a couple of different ways.

Meet with department stakeholders to form a business plan around how to improve your current situation.

Research and implement new tools, such as a project management tool , that can help streamline these processes for you. 

Take immediate action on anything that can be changed in 24 hours or less. If you don’t have the capacity, consider delegating these items to others with deadlines. 

The way you go about solving internal factors will depend on the type of problem. If it’s more complex, you might need to use a combination of the above or a more thorough problem management process.

Tip 2: Evaluate external factors

External factors stem from processes outside of your control. This includes competitors, market trends, and anything else that’s affecting your organization from the outside in. 

External factors are trickier to solve, as you can’t directly control the outcome. What you can do is pivot your own processes in a way that mitigates negative external factors. 

You can work to solve these issues by:

Competing with market trends

Forecasting market trends before they happen

Improving adaptability to improve your reaction time

Track competitors using reporting tools that automatically update you as soon as changes occur 

While you won’t be able to control an external environment, you can control how your organization reacts to it. 

Let’s say, for instance, that you’re looking to compete with a market trend. For example, a competitor introduced a new product to the market that’s outperforming your own. While you can’t take that product away, you can work to launch an even better product or marketing campaign to mitigate any decline in sales. 

Tip 3: Hold a brainstorming session

Brainstorming new and innovative ideas can help to spur creativity and inspire action. To host a high impact brainstorming session, you’ll want to: 

Invite team members from various departments. That way, ideas from each part of the company are represented. 

Be intentional about the number of team members you invite, since too many participants could lead to a lack of focus or participation. The sweet spot for a productive brainstorming session is around 10 teammates. 

Use different brainstorming techniques that appeal to different work types.

Set a clear intention for the session.

Tip 4: Get creative

In order to generate creative ideas, you have to first invite them. That means creating fun ways to come up with opportunities. Try randomly selecting anonymous ideas, talking through obviously bad examples, or playing team building games to psych up the team.

Tip 5: Prioritize opportunities

Now, rank the opportunities. This can be done as a team or with a smaller group of leaders. Talk through each idea and rank it on a scale of one through 10. Once you’ve agreed on your top ideas based on team capabilities, competencies, and overall impact, it’s easier to implement them.

Tip 6: Take action

It’s all too easy to feel finished at this stage —but the actual work is just beginning. After your SWOT analysis, you’ll have a list of prioritized opportunities. Now is the time to turn them into strengths. Use a structured system such as a business case , project plan, or implementation plan to outline what needs to get done—and how you plan to do it.

SWOT analysis template

A SWOT analysis template is often presented in a grid format, divided into four quadrants. Each quadrant represents one of the four elements. 

Use this free SWOT analysis template to jump-start your team’s strategic planning.

Identify the strengths that contribute to achieving your objectives. These are internal characteristics that give you an advantage. Some examples could be a strong brand reputation, an innovative culture, or an experienced management team.

Next, focus on weaknesses. These are internal factors that could serve as obstacles to achieving your objectives. Common examples might include a lack of financial resources, high operational costs, or outdated technology. 

Move on to the opportunities. These are external conditions that could be helpful in achieving your goals. For example, you might be looking at emerging markets, increased demand, or favorable shifts in regulations.

Lastly, let's address threats. These are external conditions that could negatively impact your objectives. Examples include increased competition or potential economic downturns.

Why is a SWOT analysis important?

A SWOT analysis can help you improve processes and plan for growth. While similar to a competitive analysis , it differs because it evaluates both internal and external factors. Analyzing key areas around these opportunities and threats will equip you with the insights needed to set your team up for success.

A SWOT analysis isn’t only useful for organizations. With a personal SWOT analysis, you can examine areas of your life that could benefit from improvement, from your leadership style to your communication skills. These are the benefits of using a SWOT analysis in any scenario. 

1. Identifies areas of opportunity

One of the biggest benefits of conducting an analysis is to determine opportunities for growth. It’s a great starting point for startups and teams that know they want to improve but aren’t exactly sure how to get started. 

Opportunities can come from many different avenues, like external factors such as diversifying your products for competitive advantage or internal factors like improving your team’s workflow . Either way, capitalizing on opportunities is an excellent way to grow as a team.

2. Identifies areas that could be improved

Identifying weaknesses and threats during a SWOT analysis can pave the way for a better business strategy.

Ultimately, learning from your mistakes is the best way to excel. Once you find areas to streamline, you can work with team members to brainstorm an action plan . This will let you use what you already know works and build on your company’s strengths.

3. Identifies areas that could be at risk

Whether you have a risk register in place or not, it’s always crucial to identify risks before they become a cause for concern. A SWOT analysis can help you stay on top of actionable items that may play a part in your risk decision-making process. 

It may be beneficial to pair your SWOT analysis with a PEST analysis, which examines external solutions such as political, economic, social, and technological factors—all of which can help you identify and plan for project risks .

When should you use a SWOT analysis?

You won’t always need an in-depth SWOT analysis. It’s most useful for large, general overviews of situations, scenarios, or your business.

A SWOT analysis is most helpful:

Before you implement a large change—including as part of a larger change management plan

When you launch a new company initiative

If you’d like to identify opportunities for growth and improvement

Any time you want a full overview of your business performance

If you need to identify business performance from different perspectives

SWOT analyses are general for a reason—so they can be applied to almost any scenario, project, or business. 

SWOT analysis: Pros and cons

Although SWOT is a useful strategic planning tool for businesses and individuals alike, it does have limitations. Here’s what you can expect.

The simplicity of SWOT analysis makes it a go-to tool for many. Because it is simple, it takes the mystery out of strategic planning and lets people think critically about their situations without feeling overwhelmed. 

For instance, a small bakery looking to expand its operations can use SWOT analysis to easily understand its current standing. Identifying strengths like a loyal customer base, weaknesses such as limited seating space, opportunities like a rising trend in artisanal baked goods, and threats from larger chain bakeries nearby can all be accomplished without any specialized knowledge or technical expertise.

Versatility

Its versatile nature allows SWOT analysis to be used across various domains. Whether it’s a business strategizing for the future or an individual planning their career path, SWOT analysis lends itself well. 

For example, a tech start-up in the competitive Silicon Valley landscape could employ SWOT to navigate its pathway to profitability. Strengths might include a highly skilled development team; weaknesses could be a lack of brand recognition; opportunities might lie in emerging markets; and threats could include established tech giants. 

Meaningful analysis

SWOT excels in identifying external factors that could impact performance. It nudges organizations to look beyond the present and anticipate potential future scenarios. 

A retail company, for example, could use SWOT analysis to identify opportunities in e-commerce and threats from changing consumer behavior or new competitors entering the market. By doing so, the company can strategize on how to leverage online platforms to boost sales and counteract threats by enhancing the customer experience or adopting new technologies.

Subjectivity and bias

The subjective nature of SWOT analysis may lead to biases. It relies heavily on individual perceptions, which can sometimes overlook crucial data or misinterpret information, leading to skewed conclusions. 

For example, a manufacturing company might undervalue the threat of new entrants in the market due to an overconfidence bias among the management. This subjectivity might lead to a lack of preparation for competitive pricing strategies, ultimately affecting the company's market share.

Lack of prioritization

SWOT analysis lays out issues but falls short on prioritizing them. Organizations might struggle to identify which elements deserve immediate attention and resources. 

For instance, a healthcare provider identifying numerous opportunities for expansion into new services may become overwhelmed with the choices. Without a clear way to rank these opportunities, resources could be spread too thinly or given to projects that do not have as much of an impact, leading to less-than-ideal outcomes.

Static analysis

Since SWOT analysis captures a snapshot at a particular moment, it may miss the evolving nature of challenges and opportunities, possibly leading to outdated strategies. An example could be a traditional retail business that performs a SWOT analysis and decides to focus on expanding physical stores, overlooking the growing trend of e-commerce. As online shopping continues to evolve and gain popularity, the static analysis might lead to investment in areas with diminishing returns while missing out on the booming e-commerce market trend.

SWOT analysis FAQ

What are the five elements of swot analysis.

Traditionally, SWOT stands for its four main elements: strengths, weaknesses, opportunities, and threats. However, a fifth essential element often overlooked is "actionable strategies." Originally developed by Albert Humphrey, SWOT is more than just a list—it's a planning tool designed to generate actionable strategies for making informed business decisions. This fifth element serves to tie the other four together, enabling departments like human resources and marketing to turn analysis into actionable plans.

What should a SWOT analysis include?

A comprehensive SWOT analysis should focus on the internal and external factors that affect your organization. Internally, consider your strong brand and product line as your strengths, and maybe your supply chain weaknesses. Externally, you'll want to look at market share, partnerships, and new technologies that could either pose opportunities or threats. You should also account for demographics, as it helps in market targeting and segmentation.

How do you write a good SWOT analysis?

Writing an effective SWOT analysis begins with research. Start by identifying your strengths, like a strong brand, and your weaknesses, like a small human resources department. Following that, look outward to find opportunities, possibly in technological advancement, and threats, like fluctuations in market share. Many businesses find it helpful to use a free SWOT analysis template to structure this information. A good SWOT analysis doesn't just list these elements; it integrates them to provide a clear roadmap for making business decisions.

What are four examples of threats in SWOT analysis?

New technologies: Rapid technological advancement can make your product or service obsolete.

Supply chain disruptions: Whether due to natural disasters or geopolitical tensions, an unstable supply chain can seriously jeopardize your operations.

Emerging competitors: New players entering the market can erode your market share and offer alternative solutions to your customer base.

Regulatory changes: New laws or regulations can add costs and complexity to your business, affecting your competitiveness.

How do you use a SWOT analysis?

Once you've completed a SWOT analysis, use the results as a decision-making aid. It can help prioritize actions, develop strategic plans that play to your strengths, improve weaknesses, seize opportunities, and counteract threats. It’s a useful tool for setting objectives and creating a roadmap for achieving them.

Plan for growth with a SWOT analysis

A SWOT analysis can be an effective technique for identifying key strengths, weaknesses, opportunities, and threats. Understanding where you are now can be the most impactful way to determine where you want to go next. 

Don’t forget, a bit of creativity and collaboration can go a long way. Encourage your team to think outside of the box with 100+ team motivational quotes .

Related resources

Everything you need to know about requirements management

Gartner® Magic Quadrant™ for Adaptive Project Management and Reporting

How Asana drives impactful product launches in 3 steps

Waterfall, Agile, Kanban, and Scrum: What’s the difference?

• Pricing Customers Get a Demo
• Platform Data Reporting Analytics Collaboration Security Integrations
• Solutions Strategic Planning Organizational Alignment Business Reporting Dashboards OKRs Project Management
• Industries Local Government Healthcare Banking & Finance Utilities & Energy Higher Education Enterprise

What Is A SWOT Analysis? A Thorough Explanation With Examples

Ted Jackson

Ted is a Founder and Managing Partner of ClearPoint Strategy and leads the sales and marketing teams.

Know the strengths and weaknesses of your organization, internally and externally.

Table of Contents

Historically, corporate planning has always been difficult. Many organizations have failed at trying to get everyone on the same page and agree to the details of a plan—more often than not, their efforts proved to be both ineffective and time consuming. Something had to be done.

What is a SWOT analysis?

Albert Humphrey of the Stanford Research Institute determined in the 1960s to identify why corporate planning consistently failed. Thus the origination of the SWOT analysis. Today, the SWOT analysis is one of the most important concepts in the business world and is widely used by all types of organizations to help build a strategic plan.

So, what is a SWOT analysis, how do you create one, and what do you do with it? In this article, we’ll explain it all (and share some SWOT analysis examples to boot) from start to finish.

A SWOT analysis is a high-level strategic planning model that helps organizations identify where they’re doing well and where they can improve, both from an internal and an external perspective. SWOT is an acronym for “Strengths, Weaknesses, Opportunities, and Threats.

SWOT works because it helps you evaluate your business by considering multiple factors:

• Strengths and weaknesses are internal factors (things you can control), like team members, software, and geographic location.
• Opportunities and threats represent external factors (things you can’t control), such as competitors, regulations, and economic trends.

Organizations use SWOT to plot out a future course that plays on their strengths and minimizes risks. Taking the time to look at your organization from different perspectives and honestly assess your future prospects is a worthwhile activity; the insights you glean as a result you should then use constructively as part of the strategic planning process.

Try ClearPoint's AI Assistant for SWOT analysis for FREE here

How to do a swot analysis.

To help you get started, we’ve created this step-by-step SWOT analysis template. The examples below are specific to the airline industry (since that’s the example we use in our grid), but the SWOT analysis exercise is applicable to all businesses.

You’ll notice we divided our hypothetical examples for strengths, weaknesses, opportunities, and threats based on the four Balanced Scorecard perspectives. You don’t have to use the Balanced Scorecard to be successful with your SWOT analysis, but this method does provide a strong framework for your discussion.

Not using the Balanced Scorecard? Look to the guiding principles of whatever strategic management framework you are using for ways to think about your business. For example, the VRIO framework emphasizes value, rarity, imitability, and organization; you can conduct a SWOT analysis through the lens of these criteria instead.

1. Create a SWOT matrix

This is the grid-like matrix that will house the information you gather. As you can see in the SWOT analysis template below, each quadrant features one of the four elements you’ll be focusing on—strengths, weaknesses, opportunities, and threats. Using a matrix helps present your findings in a clear, easy-to-understand way.

2. Gather the right participants

Pull people from all departments to participate in the analysis. Your entire leadership team should be involved because they can provide a broad view of the organization and offer insight into the competitive landscape.

But having lots of different perspectives is beneficial, and that means including leaders from every department—and anyone else you think might have valuable input. The more diverse the group, the better insights you’ll generate.

Not all ideas will make it to the final list, but it’s important to consider them all.

Claim your FREE eBook on 8 effective strategic planning templates here

3. list your strengths.

Ask the group: What are we good at? How are we better than our competitors? These are broad questions, but in the beginning stages of your discussion, you should accept all answers.

Examine these questions in relation to the Balanced Scorecard perspectives. For the fictional company Upward Airlines, the discussion might look like this:

• Financial strengths: What is our most reliable source of financial growth? Is it our service destinations? A large fleet size? Our customer loyalty program?
• Customer strengths: Where is our customer growth coming from? Is it due to excellent service ratings or low prices? Why are customers choosing us over our competitors?
• Internal strengths: What do we do very well as an organization? Are our operations easily scalable? Do we have an exceptionally high employee retention rate? How complex is our maintenance program?
• Learning & growth strengths: Where do we excel as far as our employees are concerned? Is it our compensation model? Could it be our workforce development program? Are people coming or leaving because of our culture?

Having considered these questions for your own organization, you might come up with multiple responses in some categories. Below is a sample of the strengths portion of the SWOT analysis for Upward Airlines:

TIP: As mentioned above, you can use ClearPoint to simplify this and the remaining information-gathering steps. Rather than asking everyone to brainstorm simultaneously in a conference room, give people time to review relevant data (also housed in ClearPoint) that would help identify strengths and weaknesses, as well as potential opportunities. Participants can then input their thoughts into ClearPoint, link to key supporting metrics, and even add contextual information surrounding their thought process.

Doing your analysis within a single tool not only makes it easier to collect the information but also gives you the visibility to see how the various components that make up your SWOT might be linked. Further, ClearPoint has a discussion feature that allows users to @ mention other users, and thus facilitates conversations about your strengths and weaknesses.

Watch our video to learn about ClearPoint Strategy's proven Success Framework

4. list your weaknesses.

Ask the group: What are we not good at? Where can we grow? What are we lacking? The Upward Airlines discussion might look like this:

• Financial weaknesses: What is our biggest financial weakness? Our destinations are all in the U.S., which may be limiting our growth. Or, we know that a large number of new competitors entering the market are decreasing our market share. Do we have challenges with debt or credit?
• Customer weaknesses: Where do our customers think we need to improve? This could be related to frequently canceled flights, lost baggage, complexity of the reservation process, or cleanliness, for instance.
• Internal weaknesses: What do we do poorly? Are we slow at handling customer complaints? Are our maintenance costs above industry average? What about plane utilization?
• Learning & growth weaknesses: What are our biggest challenges with employees? Is our staff security training proving ineffective, or is there a negative perception of the organizational culture? Do our employee surveys reveal low engagement?

5. Identify your opportunities

Ask the group: Where do we see big (and small) possibilities for our organization? What do we see happening in the future?

The Upward Airlines group might discuss the following:

• Financial opportunities: What is our biggest opportunity to improve our finances? This might mean taking advantage of federal loans in a time of crisis (like COVID-19) or adopting specific technology to lower costs. Maybe there is an opportunity to purchase a weaker competitor.
• Customer opportunities: Where could we dramatically improve with our customers? Could we enhance our online interface? Can we create and promote new standards of cleanliness? What about finding new ways to engage with customers when travel opportunities are low?
• Internal opportunities: What processes will drive us well into the future if we could improve upon them? Adopting certain climate initiatives to reduce our carbon footprint, for instance, will make us more eco-friendly (and, by extension, more appealing to customers). Maybe now is the time to upgrade a reservation or pricing system.
• Learning & growth opportunities: What opportunities do we have to leverage staff? For example, do we have cross-training opportunities? Could we make a few tweaks to improve our culture and thus our retention?

Upward Airlines’ opportunities for the foreseeable future might be:

See ClearPoint Strategy in action! Click here to watch a quick DEMO on the software

6. identify your potential threats.

Ask the group: What do we see as a threat? What obstacles do we anticipate? What is changing that could hurt us? As a travel-related company in a tough economy, Upward Airlines might uncover a number of potential threats:

• Financial threats: What threats could seriously impact our financial health? This could be low-cost competitors, ongoing global health issues that prevent travel, or rising oil costs.
• Customer threats: What is our biggest concern about our customers? Has a competitor created a more attractive loyalty program? Is our number of business clients trending downward?
• Internal threats: What current areas of our business might harm us later? Is a contract dispute imminent that could disrupt business? Is a potential merger or acquisition on the horizon?
• Learning & growth threats: What threatens the people within your organization? This could be anything from instability in our customer support department to staff member departures to a department-specific pushback against new technology.

The external threats deemed most imminent for Upward Airlines might be:

7. Examine your matrix for connections

In looking at your SWOT matrix, do some of your strengths naturally support the identified opportunities? If you eliminate weaknesses, would that present additional opportunities?

At this point, we recommend running a “brown paper exercise”—print your SWOT matrix in large size, and ask employees to add post-it notes in any or all of the matrix’s four boxes if they feel the leadership team missed something. (You can also ask employees to add their names next to their suggestions so leadership can follow up with them.) Not only is this exercise great for inter-office discussion, but it also gives leaders the chance to consider opinions from staff in the field.

Done correctly, the SWOT analysis is another valuable tool in your toolbox for improving business performance and minimizing threats and weaknesses going forward. It can also prompt organizations to be more innovative with their strategy—new ideas may emerge that leadership would not normally have considered without such a thorough examination of the business from all angles.

Go Beyond SWOT by downloading our eBook on 8 effective strategic planning templates

Complement your swot with a pest analysis.

A SWOT analysis is a way of understanding and evaluating all facets of your company so you’re in a better position to make decisions about the future. But there are also external factors that will impact your company’s future; these things are beyond your control but still require consideration as you map out your strategy.

That’s why many organizations choose to complement a SWOT analysis with a PEST analysis—together, they provide a complete picture of your business environment for effective strategic planning.

PEST stands for political, economic, social, and technological—the four key areas outside your business that are likely to impact it. These factors tend to play out over long time frames. An economic slowdown, for instance, could take years to resolve, but you can take action to address staff training issues fairly quickly.

Thus, a PEST analysis is more valuable than SWOT when it comes to formulating longer-term plans and business strategies. Our recommendation is to do a SWOT analysis first, followed by a PEST analysis, to get a complete picture of the business landscape.

What Should You Do with Your SWOT Analysis?

Congratulations! Hopefully, you understand your business a little better after completing your SWOT analysis; now it’s time to put those insights to good use. Your ideas on how to use your strengths and overcome your weaknesses should inform your strategy.

Developing a strategy is in and of itself a big step. It involves defining objectives for your company to move toward, creating priority initiatives (projects) to help make them a reality, and identifying measures to make sure the strategy is unfolding the way it should.

Our Upward Airlines SWOT analysis example, for instance, lists four weaknesses:

• High maintenance costs
• Fewer direct travel routes than our competitors
• No uniform project management system in place
• Below-average employee satisfaction

Some of these weaknesses are easier to address than others, such as improving employee satisfaction and your project management practices. Others, like the lack of direct travel routes, may be difficult to address in a time when airlines are still recovering from the COVID-19 fallout and profits are low. Similarly, you want to continue supporting your current strengths.

While you shouldn’t let your excellent training program lapse, it needn’t be a focus if you expect the number of new hires over the next year to be low. However, improving your virtual communication practices will most likely prove to be beneficial moving forward.

Therefore, the Upward Airlines SWOT analysis above might drive strategy in the following ways:

• An objective might be to “improve employee satisfaction”; to accomplish that goal, the company might initiate new projects that include reevaluating the benefits plan or starting a surveying program for employee feedback.
• An objective might be to “make flying as safe as possible for customers”; to reach that goal, they might implement a new cleaning regimen and increase communication with customers about new procedures.
• An objective might be to increase revenue by 10%; to help achieve that goal they might create a problem-solving team whose purpose is to reevaluate the current capacity strategy and recommend changes to offset the rising cost of fuel.

Make sure there is a clear and strong link between your SWOT analysis and your strategy map. For example, if you’re a for-profit organization, your financial perspective will be the top priority—build your analysis into your map in a manner that drives those finances in the right direction.

Maybe your SWOT analysis foretold an opportunity to hit a new line of business or forecast that a line of business would dry up. Your strategy needs to reflect that information.

If you’re using ClearPoint for strategy execution, you can make sure the projects you initiate as a result of your SWOT will actually have an impact by a) creating links within the software to show clear connections between projects and objectives, and b) tracking progress on your goals and initiatives over time.

That way, you’ll be able to see if, for example, your revised capacity plan positively impacted revenue in any substantial way—or if it had a negative effect on the bottom line. If you’re continuously monitoring progress, you’ll be able to adjust your course of action in a timely manner if needed.

Those insights will also be useful for your next SWOT analysis.

Book your FREE 1-on-1 DEMO with ClearPoint Strategy

Real-world swot analysis examples.

Still uncertain as to how your team can use the information produced by a SWOT analysis? We reached out to the business community to ask about their experiences with SWOT.

Their answers, listed below, show that SWOT can be applied to any number of business activities, from developing a long-term overall strategy to launching campaigns, new products, and more.

Seize New Opportunities

"We focus on the opportunity aspect of SWOT. We are always looking to find new ways of growing our company, and we use this analysis to show us areas where our business might thrive. A SWOT analysis showed us how important it would be for us to partner with over 15 different insurance companies, so that we can freely match each client with whichever one is best for them. Most companies like ours only work with one or two companies, but we have seized the opportunity, and we are growing because of it."

—Anthony Martin of Choice Mutual

"We took action to understand that it's not enough to simply have a great product; we need to make sure our customers know how it can help them. By servicing the market, we found ways to add value for our customers and build relationships with them by providing helpful resources on our website and offering free trials. This has helped us to focus on creating and providing value to our customers, rather than just trying to get them to buy our product. As a result, we've created a much more sustainable and successful business."

—Diana Stepanova of Monitask

"One of the most important things that came out of our SWOT analysis was identifying untapped opportunities. After changing the game with our magnetic lashes, we saw a gap in the acrylic nail market. Through a SWOT analysis, we have realized our strength in reimagining highly used beauty products and making them better for the consumer. That has opened up even more opportunities to revolutionize the billion-dollar beauty industry."

—Ann McFerran of Glamnetic

"Our SWOT analysis revealed that we could create additional revenue streams by white-labeling our writing service and marketing it to other agencies. We offered interested parties discounts on our already-competitive rates, which made working with us very attractive and profitable for both sides. This allowed us to effectively double the size of our market. Most of the work we do now is for our agency partners, which means we can spend less time chasing sales and instead focus on ensuring quality in our service."

—Milo Cruz of Freelance Writing Jobs

“The best insight I gained from performing a SWOT analysis of my organization is that we are very good at what we do and have a lot of growth potential. One action that we took because of this insight was to expand our product line. We now offer various [photo] backdrops, including some specifically designed for events. We have also started marketing to new customers, which has helped us grow our business.At first, we didn't think that expanding our product line would help us much, but it has been one of the best things we've done for our business. It's enabled us to attract new customers and grow our sales. Marketing to new customers has also been helpful in terms of growing our business. These actions have made us a more prosperous and well-rounded company. "

—Kate Zhang of Kate Backdrop

Evaluate Your Competitive Advantage

"The SWOT analysis helped us identify potential opportunities that were unique to us in terms of reach. This allowed us to focus on key areas and strategies that would allow us to be the go-to choice of a specific market."Knowing where your company stands in relation to its competitors is crucial for developing strategies that will give you a competitive advantage. It also gives you insight into your unique opportunities that your competitors may not have. This is the kind of information that can help you make decisions that will take your company to the next level."

—Linda Shaffer of Checkr

"There are many roofing contractors competing for business, and it can be difficult for customers to understand what sets us apart from the rest. In order to address this issue, we have revamped our marketing materials to better communicate our unique selling points.As a result, potential customers can now see that our company is the best choice for quality roofing services, and we have experienced a significant increase in sales."

—Marty Ford of BulletpRoof Roof Systems Ltd.

“Owners of startups and small businesses need, but cannot find, a system to start, market, operate, or finance a business. Through our SWOT analysis, we noticed that our competitors left important questions and needs unanswered. For example, a competitor might help you set up a corporation, but have nothing for you after that.You started the business, but now need marketing, operational, or finance help. We strive to be the entrepreneur's best friend by giving you the needed tools."

—James Chittenden of One Click Advisor

Learn Business Strengths

"SWOT analysis was incredibly helpful when it came to understanding the strengths of my business. I was then able to play to those strengths and build on them.One strength was integrity—my business is always honest—and I’ve built that honesty into our brand."

—Keith Terrell of Backpacks Global

"Overcoming our weaknesses doesn't mean we are not keeping an eye on our existing strengths. If there's one thing SWOT analysis has taught us, it’s that we should treasure the things that keep our company strong by being innovative. Our positive attributes can become a weakness if we refuse to adapt to changes. Consistently monitoring our strengths has allowed us to hit all our targets and go beyond our goals. As a result, we have outperformed our competitors by always bringing something new to the table."

—Adam Garcia of The Stock Dork

Address Future Business Challenges

"Two of the issues we identified were the great resignation and the recession. Knowing them in advance gave us plenty of time to make the necessary changes (like retaining your best employees by offering new benefits—remote work, PTO, and unlimited growth opportunities). We also changed our inventory strategy and made sure we had enough to counter the price increases, shortages, and demand.These strategy changes helped us limit the adverse effects of the recession, optimize our stocks, and make sure all our orders were fulfilled on time. The changes were also able to help us retain our best employees; thus, we never even had any problems throughout the great resignation."

—Michael Perry of Fitness Fixed Gear

Shore up Weaknesses

"In our SWOT analysis, we were able to pinpoint areas where our employees may be lacking the skills they needed to succeed in our company. We decided to offer free online learning to our workers to help them add to their skill set.This has helped us not only improve the skill sets of our employees, but it has also increased employee retention. Employees want to stay loyal to a company that helps them grow."

—Mark Daoust of Quiet Light

"Prior to the SWOT analysis, I had always approached marketing from a product-centric perspective; however, the SWOT analysis made me realize that we needed to focus more on customer-centric marketing. We needed to connect with our target audience and build relationships with them.As a result, we've made some changes to our marketing approach, and I believe that these changes will help us to be more successful in the long run."

—Jacob Villa of Authority

"We have always prided ourselves on having good client relationships, but this exercise showed us that we needed to have strong client relationships. We have studied our weakness (why we have monthly policy cancellations or non-renewals) and the results showed that we need to focus on building and maintaining client relationships. After doing that, we have seen a significant increase in the average tenure of our clients and customer satisfaction scores."

—Loran Marmes of Medicare Solutions Team

"One threat we encountered in our business was the sudden and huge dip in our customer satisfaction score, which has never happened in the past five years. To resolve this issue and ensure we eliminate the threat that's harming our relationship with customers, we allocated time to engage with our employees and immediately gave them intensive customer service training.Our urgent action to eradicate this threat has helped our business bounce back and we’ve regained the trust of our customers. It has also taught us to listen to customer feedback seriously and do our best to live up to their expectations."

—Jake Smith of Absolute Reg LTD

See Different Perspectives

"A successful SWOT analysis encourages discussion from employees of different levels, from operational, to managerial, to administrative level. By doing this, everyone contributes their thoughts on the status and standing of the company—it’s not just about how one person sees it. This way, all aspects of the business are considered and addressed from all levels."

—Corey Morgan of Kind Home Painting

Download Our Strategic Planning Tools—Including our SWOT Analysis Template

Swot analysis best practices.

To create the most accurate and effective SWOT analysis, we recommend the following best practices:

• Encourage open and honest conversation. Create an environment that encourages candidness. That might mean using sticky notes to gather anonymous feedback, rather than having people raise their hand to state a company weakness out loud.
• Promote collaboration. Have everyone write all their ideas on sticky notes, put them on a board, and then walk through them as a group. Combining similar ideas might help people to think of more. You might also consider breaking up a large group into smaller groups of three or four employees to encourage the sharing of ideas.
• Vote to narrow down ideas. The group will generate lots of ideas. You want to take them all into consideration, but you don’t need to keep every idea; this should be a fairly high-level exercise. Rank the top 10 and list those to focus on. And remember—the SWOT isn’t intended to project 10 years down the road; it should look at where you are now and in the very near future.
• To identify external factors, look at the competition. In addition to a PEST analysis, another way to identify external threats and opportunities is to look at your competitors. What opportunities are they currently after, and can you use that to your advantage? What threats are they currently facing, and how does that apply to you?
• Be specific when describing internal factors. For example, “brand image” can be both a strength and a weakness, depending on how you word it. Be specific in your descriptions; ultimately, that specificity will also help you define the right measures and benchmark your performance over time.
• Keep emotion out of the room. This exercise should be objective, not subjective. If a statement can’t be backed up with facts, it doesn’t count.
• Try to make your resulting strategy “weatherproof.” Current threats may include the possibility of more political and economic turmoil, but these kinds of obstacles tend to be much more complicated than those you’d see in most SWOT analyses. While it may be difficult to address them fully, try to develop a strategy that will bolster your organization during hard times. For example, a retail store might consider creating an objective to ensure its online and in-person stores perform equally well should either avenue be cut off due to external circumstances.

If you need some guidance with this process, download our free strategic planning booklet. It includes eight of the most popular templates to build strategic plans, including a SWOT analysis template.

The strategic plan you develop from your SWOT analysis is powerful, so once you’ve created it, don’t let it sit! Use strategy execution software like ClearPoint to track your progress over time.

Optimize Your Strategic Planning with ClearPoint

Undertaking a SWOT analysis requires planning and organization; it can also be a lengthy process. For those reasons, we recommend treating it like a project. If you already have project management (PM) software, by all means use it.

If you don’t have software (or if you’re considering making a change), we encourage you to take a look at ClearPoint. It’s ideal for keeping individual projects on track, but it also does much more than that— it shows you how important projects impact your organization’s overall strategy. Are your projects moving the needle when it comes to your larger goals? That’s an important aspect of project management you can’t get with any other PM tool.

Viewing your SWOT analysis as a project within ClearPoint has multiple benefits:

• You can maintain forward momentum by creating deadlines for each component, assigning responsible “owners” to tasks, and tracking milestones and overall progress.
• You can simplify the information-gathering portion of SWOT by sending automated messages to relevant team members on when and how to input information.
• You can facilitate collaboration among all parts of the organization by providing everyone access to a single tool that handles data collection.
• You can encourage participation and increase engagement by making the SWOT analysis visible to as many or as few people as you like.
• You can see how your SWOT connects to various parts of your strategy by linking elements to high-level objectives, other projects, measures, etc.—anything that adds context to the analysis.

Another benefit of treating your SWOT analysis as a project in ClearPoint: You won’t have to reinvent the wheel every time you repeat the process. You can just duplicate the framework, make any necessary adjustments, and then repeat the process as before, even comparing your newest SWOT to the previous analysis if necessary.

Below is a screenshot of what it might look like to set up a SWOT analysis as a project within ClearPoint, with some sample milestones shown.

Ready to streamline your SWOT analysis and take your strategic planning to the next level? ClearPoint Strategy is here to guide you. Our comprehensive software solution simplifies the SWOT analysis process, ensuring you gain valuable insights and effectively integrate them into your strategic plan.

Book a personalized demo with our experts and see how our software can help you efficiently conduct SWOT analyses, track progress, and achieve your strategic goals.

Frequently Asked Questions

What are the 4 dimensions of swot analysis.

The four dimensions areL strengths, weaknesses, opportunities, and threats.

When and where should you develop a SWOT analysis?

You need a few uninterrupted hours to conduct a strong SWOT analysis. You should conduct a SWOT analysis around the same time of your strategy refresh. Include key leaders within the company to get comprehensive insights on the current state of your business.

How do you use your SWOT analysis?

Use your SWOT analysis to influence your strategic plan! Don't let the insights from your SWOT analysis just sit in a shelf. Learn how to utilize your strengths to achieve your long-term goals, and make plans to strengthen your weaknesses.

Why should I conduct a SWOT analysis?

A SWOT analysis offers many benefits for your organization. It allows you to better understand your business. By taking the time to identify where your company succeeds, and where they struggle, you can create plans to leverage your strengths and mitigate risks in your weaknesses.

What's the difference between a SWOT and PESTEL analysis?

A SWOT analysis is conducted to assess internal factors that affect your business. A PESTEL analysis focuses solely on external factors .

What are the benefits of using SWOT analysis?

The benefits of using SWOT analysis include:

• Identifying Strengths: Helps identify and leverage the organization's internal strengths.
• Recognizing Weaknesses: Highlights areas for improvement within the organization.
• Spotting Opportunities: Uncovers external opportunities that the organization can exploit for growth.
• Understanding Threats: Identifies external threats that could impact the organization’s success.
• Strategic Planning: Provides a foundation for developing strategic plans and making informed decisions.

How can SWOT analysis help your business?

SWOT analysis can help your business by:

• Strategic Decision Making: Informs strategic decisions by providing a comprehensive view of the internal and external factors affecting the business.
• Resource Allocation: Helps prioritize resource allocation based on identified strengths and opportunities.
• Risk Management: Enables proactive management of potential threats and weaknesses.
• Competitive Advantage: Identifies unique strengths that can be leveraged to gain a competitive edge.
• Goal Setting: Aids in setting realistic goals and objectives based on a clear understanding of the business environment.

What are some common mistakes to avoid when conducting a SWOT analysis?

Common mistakes to avoid when conducting a SWOT analysis include:

• Lack of Specificity: Being too vague or general in identifying strengths, weaknesses, opportunities, and threats.
• Ignoring External Factors: Focusing too much on internal factors and neglecting external influences.
• Overlooking Data: Not using data and evidence to support the analysis, leading to biased or incomplete results.
• Failure to Act: Conducting the analysis but not using the insights to inform strategic decisions and actions.
• Infrequent Reviews: Not updating the SWOT analysis regularly to reflect changes in the internal and external environment.

How often should you conduct a SWOT analysis?

You should conduct a SWOT analysis:

• Annually: At least once a year as part of the strategic planning process.
• During Major Changes: Whenever there are significant changes in the market, industry, or within the organization.
• Before Strategic Initiatives: Prior to launching new products, entering new markets, or making major business decisions.
• Periodically: Regularly reviewing and updating the SWOT analysis ensures it remains relevant and accurate.

What are some tips for getting the most out of a SWOT analysis?

Tips for getting the most out of a SWOT analysis include:

• Involve Key Stakeholders: Engage a diverse group of stakeholders to gain comprehensive insights and perspectives.
• Use Data: Base the analysis on accurate and up-to-date data to ensure reliability.
• Be Specific: Clearly define each strength, weakness, opportunity, and threat to avoid ambiguity.
• Prioritize Factors: Focus on the most critical factors that will have the greatest impact on the business.
• Develop Action Plans: Translate insights from the SWOT analysis into actionable strategies and plans.
• Review Regularly: Regularly revisit and update the SWOT analysis to keep it relevant and useful.

Latest posts

ClearPoint Strategy at the 2024 ICMA Annual Conference

The Power of Software in Managing a City Strategic Plan

The ClearPoint Strategy Success Framework: Managing Projects

• Business Ideas
• Super Guides
• Innovation Report
• Canvas Examples
• Presentations
• Spreadsheets
• Discounted Bundles
• Search for:

No products in the cart.

Return to shop

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.

Download FREE!

To download SWOT Analysis Template PDF today just enter your email address!

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.

More About Me

Related Posts

Difference Between Product-based and Service-based Companies

A company’s business model can be divided into two main categories: product-based and service-based. Understanding [...]

Customer Segments

Customer Segments is the first and most important building block of the Business Model Canvas. [...]

What is Minimum Viable Product (MVP)?

Minimum Viable Product (MVP) is about a first version of the product, with minimum features, just [...]

Economic Factors Affecting Business

Understanding the role that economic factors play in affecting businesses is essential to any executive [...]

Distribution Channels

When designing your Business Model, your first step will be to define the Customer Segments [...]

Business Model Innovation: Strategies and Examples for Successful Transformation

Business model innovation is the art of enhancing advantage and value creation by simultaneously changing [...]

What is the difference between Business Model and Business Plan?

It’s very common to make confusion on what’s the difference between Business Model and Business [...]

Network Effects

Some of the greatest current brands, such as Facebook and Amazon have their businesses built [...]

RECEIVE OUR UPDATES

Username or email address  * Required

Password  * Required

Remember me Log in

Lost your password?

What Is A SWOT Analysis? Download Our Free Template

Updated: May 28, 2024, 9:59pm

A SWOT analysis is a framework used in a business’s strategic planning to evaluate its competitive positioning in the marketplace. The analysis looks at four key characteristics that are typically used to compare how competitive the business can be within its industry. A proper SWOT analysis can give you a fact-based analysis to make decisions from, or it could spark your creativity for new products or directions.

Featured Partners

From $8 monthly per user

Zoom, LinkedIn, Adobe, Salesforce and more

On monday.com's Website

Yes, for unlimited members

$7 per month

Slack, Microsoft Outlook, HubSpot, Salesforce, Timely, Google Drive and more

On ClickUp's Website

$9.80 per user per month

Salesforce, Adobe, Miro, Netsuite, Quickbooks, SAP

On Wrike's Website

Yes, for one user and two editors

$9 per user per month

Google Drive, Slack, Tableau, Miro, Zapier and more

On Smartsheet's Website

The Four Points of SWOT

The four points of a proper SWOT analysis are Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses focus internally on the business being evaluated, while Opportunities and Threats look at competition and things going on externally. Let’s look at the four points in more detail to determine how you can correctly evaluate each one.

• Strengths. Your Strengths are internal positives about your company that you can control and that often provide you with a competitive advantage. Some examples might be the quality of your product, the effectiveness of your processes, your access to physical or team assets or other competitive advantages.
• Weaknesses. A Weakness is an adverse internal attribute about your company that negatively takes away from your Strengths. Some examples might include knowledge gaps on your team, a low-quality product, a lack of money or other tangible assets, bad locations and more.
• Opportunities. An Opportunity is an external factor that provides promise or is likely to contribute to your potential success. Some examples might include the growth rate in your industry, specific laws or policies that will benefit the need for your product, positive customer feedback or technology advancements.
• Threats. A Threat is an external factor that you have no control over, which could negatively impact your success. These are typically acknowledged so that you can provide a plan to overcome each one. Some examples include potential future competitors, costs of supply, upcoming market trends, negative technology changes and upcoming regulations or laws.

The key to a strong SWOT analysis is accuracy in your research across all four points. Once you have the right information, you need to display it in an efficient and appealing way so that the data can easily be shared across your organization, with potential investors or with whoever might benefit the most from receiving it.

Downloadable SWOT Template

A SWOT analysis is usually presented in a grid form that provides the most important information from the analysis in each of the four points or areas. We have created a downloadable template that you can use to easily make your own SWOT analysis and include it as part of your next presentation or proposal. If preferred, you can also make a copy in Google Docs.

Download Free Template

How To Do an Effective SWOT Analysis

Every SWOT analysis is somewhat unique to each business but, ultimately, there is a straightforward process that can work for everyone. For example, you’ll have to complete all four points for a proper SWOT analysis but the research and method of getting the information could vary. The depth of each point might also vary depending on the age of your business, and the competition or opportunity in your industry.

The three steps to complete a proper SWOT analysis are:

• Gather the right stakeholders together. You need to involve more than yourself when going through a SWOT analysis. Key leaders and decision makers in your organization should be involved in going through the exercise. If you’re starting a business, you should include all who are involved in the business at this point in time.
• Brainstorm and capture SWOT data. The second step is to go through the process of identifying the information related to each of the four points. Everyone should do this independently as well as collectively.
• Analyze the data. Take all of the information collected through the brainstorming and come to an agreement on what factors should be represented in each of the main points. Then you can plug your information into the SWOT analysis template above and use this to strategically plan for future growth.

Questions To Aide Your Research for Each SWOT Point

When conducting the SWOT analysis, the most important part is making sure you’re as inclusive as possible with the analysis of each point. We’ve compiled a list of questions that you can use to start working through each point in your SWOT analysis so that you don’t leave anything off your list.

Use-case Examples

You can use a SWOT analysis for a number of activities, from deciding whether to invest in a business to helping an individual perform better at a non-profit. The use of SWOT is industry agnostic, as long as there are both internal and external factors that relate to the team, business or person being evaluated.

Some use-case examples for SWOT analysis include:

• A new business venture. Whenever a new business is launching it is a good idea to create a SWOT analysis to see where your Strengths and shortcomings lie. If you’re looking to raise money, then it will be expected that you’ve completed this analysis.
• Launching a new product. Whenever you’re launching a new product, you can treat it like a new business and complete the SWOT analysis to ensure success. Not doing your research beforehand could lead to targeting the wrong customers or not preparing for the competitive landscape.
• Improving team processes. From time to time, it could be beneficial to evaluate the performance of your team and see where you’re succeeding and what Opportunities exist to improve.
• Product team adding features. Every time a new feature is added to your product, your team can complete a SWOT analysis to see what impact it could have on the competitive landscape.
• Marketing team launching a campaign. Whenever a new target audience or method for reaching them is considered, the marketing team can complete a SWOT analysis to determine its potential.

As you can see, the sky’s the limit for use cases since you can use a SWOT analysis to determine the potential Strengths or roadblocks for just about anything.

Alternatives To SWOT Analysis

Depending on your situation, or your business, you may want to consider an alternative to a SWOT analysis. There are several options that can give you similar results, but these four alternatives are the most popular amongst businesses and teams looking at SWOT.

• SOAR analysis. SOAR stands for Strengths, Opportunities, Aspirations and Results. This is the most positive analysis on the list and is one of the most popular with those who dislike the SWOT analysis. This method requires you to evaluate the “six Is” of collaboration (initiate, inquire, imagine, innovate, inspire and implement).
• SCORE analysis. SCORE stands for Strengths, Challenges, Options, Responses and Effectiveness. Many like the “challenges” point of SCORE because it encompasses Threats, Weaknesses and obstacles in a single point while making all of them more of a positive opportunity. The SCORE methodology also focuses on actions you can take to improve instead of just focusing on the information from the analysis.
• NOISE analysis. NOISE stands for Needs, Opportunities, Improvements, Strengths and exceptions. The needs point focuses on the things your business or team needs to succeed instead of focusing on your shortcomings as things that stand in your way. This approach really trains you to see potential growth instead of roadblocks.
• Gap analysis. Gap is the only analysis on this list that doesn’t stand for anything. A gap analysis looks at where you’re at right now, where you want to go and how you close the gap between the two.

Check out our full guide to cost benefit analysis .

When To Use SWOT

When you need a broad analysis of your business, department, organizational or team potential, you should look no further than the SWOT analysis. It can provide a good overview of all of the major points that add up to potential success and help you draft a road map for potential growth. A SWOT analysis is also a good fit if you just need a quick comparison of your business to the competitive landscape that is out there.

When To Use an Alternative

If you need to dive deeper into specific factors or points of your business or team potential, then you may want to consider another alternative to the SWOT analysis. Alternatively, many pundits think that the word choices in SWOT are either vague or that they promote defeat. If you agree with that before you begin the SWOT analysis, then another option might be best for you so that the end goal of growing your business or team is met without obstacles.

Frequently Asked Questions

Who should complete a swot analysis.

Anyone looking to determine how a business or organization matches up against the competition, if there are both internal and external factors involved, should do a SWOT analysis. While a SWOT analysis is mostly used by new businesses or businesses launching a new product, it can also be used for any other type of organization and even for your local economy .

When should you do a SWOT analysis?

If you want to change your strategic positioning or launch a new product or service, then you should complete a SWOT analysis. Some also complete the exercise if they are just curious about their current positioning in their market or industry.

How do you write a good SWOT analysis?

A good SWOT analysis includes a full analysis of each point (Strengths, Weaknesses, Opportunities, Threats) as well as a clear and concise way of displaying the end results. The three primary steps to writing a good SWOT analysis are:

• Gather the right stakeholders together.
• Brainstorm and capture SWOT data.
• Analyze the data.

What are examples of threats in a SWOT analysis?

Threats are often external influences outside of your control; things that you risk by doing business. Inclement weather is one good example of something that you can’t combat and will have to deal with as it happens. Having a plan in place for dangerous storms will help you be prepared when they inevitably happen. Waiting for permits, supply chain failures and manufacturing errors can all impact your business negatively.

• Best Project Management Software
• Best Construction Project Management Software
• Best Project Portfolio Management Software
• Best Gantt Chart Software
• Best Task Management Software
• Best Free Project Management Software
• Best Enterprise Project Management Software
• Best Kanban Software
• Best Scrum Software
• Best Agile Project Management Software
• Asana Review
• Trello Review
• monday.com Review
• Smartsheet Review
• Wrike Review
• Todoist Review
• Basecamp Review
• Confluence Review
• Airtable Review
• ClickUp Review
• Motion App Review
• Monday vs. Asana
• Clickup vs. Asana
• Asana vs. Trello
• Asana vs. Jira
• Trello vs. Jira
• Monday vs. Trello
• Clickup vs. Trello
• Asana vs. Wrike
• What Is Project Management
• Project Management Methodologies
• 10 Essential Project Management Skills
• SMART Goals: Ultimate Guide
• What is a Gantt Chart?
• What is a Kanban Board?
• What is a RACI Chart?
• What is Gap Analysis?
• Work Breakdown Structure Guide
• Agile vs. Waterfall Methodology
• What is a Stakeholder Analysis
• What Is An OKR?

What Is SNMP? Simple Network Management Protocol Explained

What Is A Single-Member LLC? Definition, Pros And Cons

What Is Penetration Testing? Definition & Best Practices

What Is Network Access Control (NAC)?

What Is Network Segmentation?

How To Start A Business In Louisiana (2024 Guide)

Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. From answering your legal questions to providing the right software for your unique situation, he brings his knowledge and diverse background to help answer the questions you have about small business operations.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of directors of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager.

Three-Day LIVE Summit with 10+ Ecommerce Trailblazers.

• Skip to primary navigation
• Skip to main content

A magazine for young entrepreneurs

The best advice in entrepreneurship

Subscribe for exclusive access, swot analysis: definition, examples, and step-by-step guide.

Written by Mary Kate Miller | June 29, 2021

Comments -->

Get real-time frameworks, tools, and inspiration to start and build your business. Subscribe here

A SWOT analysis can help a small business owner or business assess a company’s position to determine the most optimal strategy going forward. This business practice can help you identify what you’re doing well, what you want to do better, and what kinds of obstacles you might encounter along the way.

This guide will walk you through everything you need to know about a SWOT analysis: what it is, how it works, and how to do it. We’ll also include an example and a template to help guide you as you perform your own SWOT analysis.

What Is a SWOT Analysis?

A SWOT analysis is a strategic planning technique that outlines an organization’s strengths, weaknesses, opportunities, and threats. Assessing business competition in this way can help an organization plan strategically and execute more effectively.

The 4 Parts of a SWOT Analysis

Your business’s strengths SWOT section should include anything that your business does differently or better than competitors. Think about your unique value proposition, trends you’ve noticed in positive customer feedback, operational strengths, and company culture. This section is the perfect place to name and celebrate anything you’re already doing well.

Don’t be afraid to toot your own horn (while also remaining objective). Clearly identifying your business’s strengths not only helps you keep your spirits balanced as you address your weaknesses, it will also give you a sense of where to concentrate your resources. It’s easier to build a successful business when you’re working towards something, rather than acting in opposition.

Questions to help you determine your strengths:

• What is your business’s unique value proposition?
• What common compliments do you receive from your customers?
• What does your business do particularly well?
• How do you operate differently from your competitors?
• What gives you an edge on the competition ? (This can include something product-related like “better access to raw materials” or “lower cost of goods,” or it can be an internal strength like “strong company culture” or “employee motivation.”)
• What might your competitors name as your strengths?

Your weaknesses are the areas in which the business has room for improvement. You should include structural weaknesses in this section—those that relate to your systems, procedures, resources, and personnel. This is a great place to look at common feedback from employees (either from exit interviews, anonymous surveys, or other sources) and recurring customer complaints.

Questions to help you determine your weaknesses:

• What areas of your business could stand to improve?
• What are common hiccups in your customer experience ?
• How do you use your resources? Is there room for improvement?
• What improvements are needed in your employee experience?
• What weaknesses might your customers see that you tend to overlook?
• What weaknesses might your competitors think you have?

Opportunities

Your opportunities are the positive, external factors that your business might benefit from… but cannot directly control. That might include market opportunities, consumer purchasing trends, legal or regulatory changes, population changes, the cost of raw materials, and more. For example, businesses that provide accessibility for aging seniors might recognize the forthcoming “silver tsunami” of Baby Boomers entering the target demographic. This would be a clear opportunity to expand their customer base.

Questions to help you determine your opportunities:

• What trends might affect your industry?
• How might the right talent create new opportunities?
• your customers ask for anything you don’t offer (but could)?
• How might population changes affect your business opportunities? (think: generational shifts)
• Is there a need in the industry that you’re not creating, but could?
• Do your competitors have any weaknesses that could be opportunities for you?
• Is there a way to repackage current products to demand a higher price?
• Are there any new, or potential, regulatory or tax changes that might provide a new opportunity?

Your threats are the external factors that have the potential to negatively affect your business. A threat can be specific and competitor-based or more structural. buy clomid online buy clomid online no prescription Examples of structural threats could be supply chain challenges, shifts in market requirements, talent shortages, or changes to social media algorithms (especially if your business heavily relies on social media marketing). You might also face a threat (or threats) from your competitors. This can include the way they operate, how they’re marketing, or the products they offer.

Identifying every external threat your business faces is essential for your business to identify how it must adapt in order to meet and overcome these challenges.

Questions to help you determine threats:

• What happens if a supplier or manufacturer runs out of materials you use?
• What if a natural disaster (like a pandemic) strikes? buy amitriptyline online buy amitriptyline online no prescription
• Is your market shrinking?
• What are your competitors offering? Are they expanding or offering different products?
• How are your competitors marketing?
• What technological threats are you vulnerable to (website security, social media algorithm changes)?
• Are there any businesses that aren’t competitors now but could become competitors in the future?

The Benefits of a SWOT Analysis

SWOT analyses offer a variety of benefits for businesses and personal brands. Here are some of the most common benefits of a SWOT analysis:

• You can use it to determine a strategic plan.
• You can use it to drive an innovative, informed marketing plan.
• It can help you identify external opportunities.
• It can help you identify external threats.
• It can reveal environmental factors that might affect your business, either positively or negatively.
• You can develop a plan for how to tackle internal weaknesses.

How to Do a SWOT Analysis

You can approach SWOT analyses in multiple ways. You can conduct a personal SWOT analysis for yourself as an individual, you can perform a marketing SWOT analysis to determine a competitive advantage in your marketing , or you can use a SWOT analysis as a part of broader strategic planning.

Whatever your end goal for a SWOT analysis, follow these steps.

1. Create a SWOT Matrix

Use a SWOT template or create your own. You can create your SWOT framework on the computer or on a whiteboard—if you choose to do the latter, be sure that someone is in charge of recording the responses so that you don’t lose key insights (you can also take a picture at the end of the SWOT session).

2. Assemble Key Stakeholders

A SWOT analysis is most effective when it collects a variety of perspectives. Gathering key stakeholders with various perspectives will help you see more than you would have seen alone. Marketing leaders might be able to give you a more specific sense of the opportunities and threats related to your content marketing efforts. Your people team is closest to all personnel changes and feedback, so they’ll have the clearest sense of an organization’s strengths and what is driving employee retention (or challenging it). Sales leaders can help translate opportunities into a cohesive business strategy.

It’s simple: when it comes to a SWOT analysis, more heads are better than one.

3. Brainstorm Around Your Companies’ Strengths, Weaknesses, Opportunities, and Threats

Go through each field of the SWOT diagram, spending some time with each one. Ask the group the guiding questions to ensure you’re developing a comprehensive picture of the internal and external environment. There are no bad ideas in brainstorming. You’re just trying to get thoughts flowing. Something that feels like a “bad idea” might lead to discovering a potential threat you’d never thought of before or nuanced analysis of how you stack up to your nearest competitor. The key here is to keep the brainstorm going.

4. Record Relevant Thoughts in Their Respective Sections

As you brainstorm, record points and ideas when they are relevant. At the end of the session, your SWOT analysis should leave you with a clear sense of the organization’s strengths and company’s weaknesses that you can use to guide your strategy formulation.

5. Edit Your List

Revisit the SWOT diagram at a later time and edit it, culling out anything you don’t really need. You can also polish up some of the key insights gleaned in the brainstorming session. This is especially important if you plan to use your SWOT analysis as a more formal document that might be disseminated broadly.

6. Create a More Formal Version (Optional)

The final step, if you choose to do it, is to take your SWOT takeaways and put them together in a polished document that you can share.

A SWOT Analysis Example

It can be easier to understand how to approach a SWOT analysis if you’ve seen a SWOT analysis example. For the sake of this example, we will imagine a hypothetical company and what its SWOT analysis might look like.

The Business

An Instagram-friendly fitness business offering virtual workouts.

• The business is not limited to a specific geographic area.
• The company offers great benefits so employees tend to stay.
• Workouts look really good, so they market well on social media (particularly Instagram).
• The app experience can be glitchy.
• High customer churn rate.
• Competitors let you filter classes by the instructor. Ours doesn’t offer that.
• There is growing interest in our type of workout.
• As a result of the pandemic, consumers are more interested in at-home workouts.
• We could start offering retail products and branded workout equipment like our competitors do.
• Our app is vulnerable to hacking.
• If Instagram changes its algorithm, we may become wholly dependent on paid ads instead of organic posts.

A SWOT Analysis Template

Use this template to create your own SWOT analysis.

Strengths Section: What Your Company Does Well

Weaknesses section: what your company could improve, opportunities section: external factors you could use to your advantage, threats section: external factors that could harm your business, owning the hard truths of a swot analysis.

A SWOT analysis can bring up a lot of hard truths. It’s difficult to confront your company’s weaknesses and sometimes looking at threats can make them feel like the existential kind. Overcome these obstacles and give yourself the fortitude to confront business challenges head on with the Mental Toughness mini-course. The best part? It’s free.

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

Related Posts

Bootstrapping vs. External Funding: What’s Right For You?

7 Steps to Turn Your Hobby into a Profitable Business

6 Time Management Hacks for Busy Entrepreneurs

5 Ways to Use Generative AI to Scale Your Startup

Customer Engagement: The Secret to Long-Term Success

Giveaway Ideas: 4 Tried and Tested Approaches from a 7-Figure Ecommerce Expert

How to List Products on Amazon: Everything You Need to Know

Is Selling On Amazon Worth it? Get Your Questions Answered

Amazon FBA Fees: How to Calculate What FBA Will Cost You

The Complete Guide to Getting Clients for Your Consulting Business

What’s the Most Profitable Business to Start in 2024?

9 Best Businesses You Can Start with No Money

8 Businesses That Make Money Right Away (In 1-3 Months or Less)

How Much To Unapologetically Charge For Public Speaking

Write the Perfect Consulting Proposal: Tools, Examples, and a Template

FREE TRAINING FROM LEGIT FOUNDERS

Actionable Strategies for Starting & Growing Any Business.

FREE Webinar:

New Feature - Industry Data & Insights Register Now

0 results have been found for “”

 Return to blog home

What Is a SWOT Analysis and How to Do It Right (With Examples)

Posted february 2, 2021 by noah parsons.

A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business strategy, whether you’re building a startup or guiding an existing company.

What is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.

Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.

A SWOT analysis organizes your top strengths, weaknesses, opportunities, and threats into an organized list and is usually presented in a simple two-by-two grid. Go ahead and download our free SWOT analysis template  if you just want to dive right in and get started.

Why do a SWOT Analysis?

When you take the time to do a SWOT analysis, you’ll be armed with a solid strategy for prioritizing the work that you need to do to grow your business.

You may think that you already know everything that you need to do to succeed, but a SWOT analysis will force you to look at your business in new ways and from new directions. You’ll look at your strengths and weaknesses, and how you can leverage those to take advantage of the opportunities and threats that exist in your market.

Who should do a SWOT Analysis?

For a SWOT analysis to be effective, company founders and leaders need to be deeply involved. This isn’t a task that can be delegated to others.

But, company leadership shouldn’t do the work on their own , either. For best results, you’ll want to gather a group of people who have different perspectives on the company. Select people who can represent different aspects of your company, from sales and customer service to marketing and product development. Everyone should have a seat at the table.

Innovative companies even look outside their own internal ranks when they perform a SWOT analysis and get input from customers to add their unique voice to the mix.

If you’re starting or running a business on your own, you can still do a SWOT analysis. Recruit additional points of view from friends who know a little about your business, your accountant, or even vendors and suppliers. The key is to have different points of view.

Existing businesses can use a SWOT analysis to assess their current situation and determine a strategy to move forward . But, remember that things are constantly changing and you’ll want to reassess your strategy, starting with a new SWOT analysis every six to 12 months.

For startups, a SWOT analysis is part of the business planning process. It’ll help codify a strategy so that you start off on the right foot and know the direction that you plan to go.

How to do a SWOT analysis the right way

As I mentioned above, you want to gather a team of people together to work on a SWOT analysis. You don’t need an all-day retreat to get it done, though. One or two hours should be more than plenty.

1. Gather the right people

Gather people from different parts of your company and make sure that you have representatives from every department and team. You’ll find that different groups within your company will have entirely different perspectives that will be critical to making your SWOT analysis successful.

2. Throw your ideas at the wall

Doing a SWOT analysis is similar to brainstorming meetings, and there are right and wrong ways to run them. I suggest giving everyone a pad of sticky-notes and have everyone quietly generate ideas on their own to start things off. This prevents groupthink and ensures that all voices are heard.

After five to 10 minutes of private brainstorming, put all the sticky-notes up on the wall and group similar ideas together. Allow anyone to add additional notes at this point if someone else’s idea sparks a new thought.

3. Rank the ideas

Once all of the ideas are organized, it’s time to rank the ideas. I like using a voting system where everyone gets five or ten “votes” that they can distribute in any way they like. Sticky dots in different colors are useful for this portion of the exercise.

Based on the voting exercise, you should have a prioritized list of ideas. Of course, the list is now up for discussion and debate, and someone in the room should be able to make the final call on the priority. This is usually the CEO, but it could be delegated to someone else in charge of business strategy.

You’ll want to follow this process of generating ideas for each of the four quadrants of your SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats.

Questions that can help inspire your analysis

Here are a few questions that you can ask your team when you’re building your SWOT analysis. These questions can help explain each section and spark creative thinking.

Strengths are internal, positive attributes of your company. These are things that are within your control.

• What business processes are successful?
• What assets do you have in your teams? (ie. knowledge, education, network, skills, and reputation)
• What physical assets do you have, such as customers, equipment, technology, cash, and patents?
• What competitive advantages do you have over your competition?

Weaknesses are negative factors that detract from your strengths. These are things that you might need to improve on to be competitive.

• Are there things that your business needs to be competitive?
• What business processes need improvement?
• Are there tangible assets that your company needs, such as money or equipment?
• Are there gaps on your team?
• Is your location ideal for your success?

Opportunities

Opportunities are external factors in your business environment that are likely to contribute to your success.

• Is your market growing and are there trends that will encourage people to buy more of what you are selling?
• Are there upcoming events that your company may be able to take advantage of to grow the business?
• Are there upcoming changes to regulations that might impact your company positively?
• If your business is up and running, do customers think highly of you?

Threats are external factors that you have no control over. You may want to consider putting in place contingency plans for dealing with them if they occur.

• Do you have potential competitors who may enter your market?
• Will suppliers always be able to supply the raw materials you need at the prices you need?
• Could future developments in technology change how you do business?
• Is consumer behavior changing in a way that could negatively impact your business?
• Are there market trends  that could become a threat?

SWOT Analysis example

To help you get a better sense of what at SWOT example actually looks like, we’re going to look at UPer Crust Pies, a specialty meat and fruit pie cafe in Michigan’s Upper Peninsula. They sell hot, ready-to-go pies and frozen take-home options, as well as an assortment of fresh salads and beverages.

The company is planning to open its first location in downtown Yubetchatown and is very focused on developing a business model that will make it easy to expand quickly and that opens up the possibility of franchising. Here’s what their SWOT analysis might look like:

SWOT analysis for UPer Crust Pies

How to use your SWOT Analysis

With your SWOT analysis complete, you’re ready to convert it into a real strategy. After all, the exercise is about producing a strategy that you can work on during the next few months.

The first step is to look at your strengths and figure out how you can use those strengths to take advantage of your opportunities. Then, look at how your strengths can combat the threats that are in the market. Use this analysis to produce a list of actions that you can take.

With your action list in hand, look at your company calendar and start placing goals (or milestones) on it. What do you want to accomplish in each calendar quarter (or month) moving forward?

You’ll also want to do this by analyzing how external opportunities might help you combat your own, internal weaknesses. Can you also minimize those weaknesses so you can avoid the threats that you identified?

Again, you’ll have an action list that you’ll want to prioritize and schedule.

UPer Crust Pies — Potential strategies for growth

Back to the UPer Crust Pies example: Based on their SWOT analysis, here are a few potential strategies for growth to help you think through how to translate your SWOT into actionable goals.

• Investigate investors. UPer Crust Pies might investigate its options for obtaining capital.
• Create a marketing plan. Because UPer Crust Pies wants to execute a specific marketing strategy —targeting working families by emphasizing that their dinner option is both healthy and convenient—the company should develop a marketing plan.
• Plan a grand opening. A key piece of that marketing plan will be the store’s grand opening, and the promotional strategies necessary to get UPer Crust Pies’ target market in the door.

Next steps with your SWOT Analysis

With your goals and actions in hand, you’ll be a long way toward completing a strategic plan for your business. I like to use the Lean Planning methodology for strategic plans as well as regular business planning. The actions that you generate from your SWOT analysis will fit right into the milestones portion of your Lean Plan and will give you a concrete foundation that you can grow your business from. You can download our free Lean Plan template to help you get started.

If you have additional ideas for how a SWOT analysis can help your business and how it fits into your regular business planning, I’d love to hear from you. You can find me on Twitter @noahparsons .

Like this post? Share with a friend!

Noah Parsons

Posted in management , growth & metrics, join over 1 million entrepreneurs who found success with liveplan, like this content sign up to receive more.

Subscribe for tips and guidance to help you grow a better, smarter business.

You're all set!

Exciting business insights and growth strategies will be coming your way each month.

We care about your privacy. See our privacy policy .

Small Business Trends

Swot analysis guide: powerful examples and a free template.

Are you looking for an easy way to gain a better understanding of your business, understand what is driving your success, and plan for the future? A SWOT analysis is a great tool for doing all of this. This SWOT Analysis Guide provides examples, a free template, and helpful information to help you create a comprehensive report on the strengths, weaknesses, opportunities, and threats facing your organization. Let’s get started!

Table of Contents

What is a SWOT Analysis

SWOT analysis, standing for Strengths, Weaknesses, Opportunities, and Threats, is a strategic tool that assists businesses in comprehending their current position and future planning. This robust framework plays an essential role in strategic planning and analysis for any organization.

For example, a dip in profit margins for a business can be scrutinized using a SWOT analysis. This tool helps identify internal factors, such as inefficient practices or inflated costs, that might be causing this dip. Using the SWOT pillars – strengths, weaknesses, opportunities, and threats – one can derive strategies to rectify the problem and enhance profit margins.

Through a SWOT analysis, businesses can:

• Identify and assess their strengths and weaknesses : This might include distinct capabilities, resources, or operational inefficiencies within the business.
• Spot external opportunities : Such as emerging markets or untapped customer segments that can offer growth prospects.
• Pinpoint potential threats : For example, regulatory changes or competitive pressures that might pose a challenge in the future.

In essence, this analysis delivers a holistic view of the business’s internal and external landscape, paving the way for informed decision-making and strategy creation.

Particularly for startups, employing a SWOT analysis is a crucial aspect of business planning. It aids in strategizing effectively, ensuring a smooth launch, and setting a clear trajectory for the journey ahead. Employing this strategic tool early on can foster a robust foundation for the business, empowering it to navigate the entrepreneurial landscape with confidence.

A SWOT analysis serves as a cornerstone for strategic planning, enabling businesses to align their goals with internal capabilities and market realities. Strengths and Weaknesses are introspective elements, helping businesses to capitalize on their unique competencies and address internal shortcomings.

Opportunities and Threats, on the other hand, require an outward focus, assessing market trends, competitive landscapes, and external risks.

Understanding these four elements in unison allows businesses to construct a comprehensive strategy that plays to their strengths, mitigates risks, leverages market opportunities, and avoids potential pitfalls.

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?

The primary goal of a SWOT analysis is to leverage strengths and opportunities while addressing weaknesses and mitigating threats.

By understanding the internal and external factors that impact the business, organizations can make informed decisions about allocating resources, pursuing growth opportunities, and minimizing risks.

It provides a structured approach to strategic planning and helps businesses align their actions with their goals and aspirations, ultimately increasing their chances of success in the marketplace.

Pros of SWOT Analysis

A SWOT Analysis offers invaluable insight for those making decisions at all levels of the organization, from upper management to individual teams. Here are five key pros of using this powerful tool:

• Identify Strengths and Weaknesses. A SWOT Analysis can help identify an organization’s internal strengths and weaknesses, as well as external opportunities and threats. This information can help businesses make smarter decisions about how they utilize their resources and plan for the future.
• Information is Quickly Obtained: A SWOT matrix is designed to be easily skimmed. This facet allows stakeholders and decision-makers to quickly grasp the internal strengths and weaknesses, as well as the external opportunities and threats faced by the business. This visual representation aids in identifying strategic priorities, facilitating discussions, and guiding the formulation of effective strategies based on the insights derived from the analysis.
• Focus on Goals. By analyzing factors that could have an impact on achieving a specific goal, businesses are better able to focus their efforts more strategically. This helps ensure that actions are taken in a way that could maximize positive outcomes while minimizing potential risks or drawbacks.
• See the Big Picture. Having an overall view of what is happening within a business allows those making decisions to take into account more than just immediate consequences but also the long-term effects of certain choices further down the line.
• Improve Communication and Collaboration. Conducting a SWOT Analysis encourages collaboration between different teams, departments, or individuals within an organization. Doing so helps ensure everyone involved is aligned for collective success by creating a shared understanding of all factors impacting decision-making processes.
• Gain Insight and Make Informed Decisions. When all relevant pieces of information are taken into consideration, organizations gain valuable insight which can help guide conversations around strategy development, budgeting priorities, and more leading to better-informed business decisions.

Cons of SWOT Analysis

Although a SWOT Analysis is a useful tool, there can be certain drawbacks that should be considered when utilizing this framework. Here are three potential cons of the SWOT Analysis:

• Time Consumption. Conducting a thorough and accurate SWOT Analysis requires significant time. It can be a lengthy process to collect, analyze, and synthesize all relevant data into actionable insights.
• Potential for Bias. As with any analysis or assessment, there can be potential bias as to what is included in the process. This could lead to incomplete results or faulty conclusions if too much emphasis is placed on one particular aspect of the analysis over others.
• Limited Usefulness Over Time. The facts and data used for most SWOT Analyses will change over time, thus making them less effective in predicting future outcomes with certainty. To be successful with SWOT Analyses, they must be regularly updated as new developments unfold in order to remain applicable and accurate.

Breaking Down a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats)

Writing a good SWOT analysis is crucial for small businesses looking to expand quickly and maintain a competitive edge over emerging competitors. It serves as a strategic planning tool that enables businesses to assess their internal strengths and weaknesses, as well as external opportunities and threats.

Conducting a SWOT analysis is about analyzing every aspect of a company and developing potential strategies accordingly.

First, we’ll go through each of the components of a SWOT analysis and what to put down for each section to help you conduct a SWOT analysis. Make sure to research how to do a competitive analysis to get an idea of what your competitors’ strengths and weaknesses are.

Your first step is to identify and list these business strengths. Your strengths are internal factors that are positive and within your control.

To help build your list of business strengths, ask yourself the following:

• What internal processes of your company are successful? These could be good supplier relations, an advantage in the market over others, marketing, and online presence, additional services offered/value-adds, etc.
• What assets does your marketing team possess? Examples can be education, skills, knowledge, reputation, networking, and technical expertise.
• What assets does your company have: Assets can be in the form of location, equipment, software tools, unique selling points, robust processes, intellectual property, patents and other factors contributing to your business’s success.
• What competitive advantages does your company have? This refers to unique strengths or capabilities that set your business apart from the competition and give you an edge in the market. It could include factors such as proprietary technology, exclusive partnerships, strong brand reputation, superior customer service, efficient supply chain management, or a highly skilled and experienced team.

This is the tough part of the four quadrants since it’s difficult to confront the strengths and weaknesses of a business objectively. But your main priority here is to identify the company’s weaknesses both internally and externally.

Think of this as the building blocks to help you convert weaknesses into strengths.

This could include external environment factors such as pricing, competition, lowered demand, and more. It can also include internal weaknesses that negatively affect the business, such as a lack of budget, small teams, etc.

Opportunities

Now that you’ve done a deep dive into your business’s strengths and your business’s weaknesses, it’s time to identify potential opportunities. Based on the strengths and weaknesses you’ve laid out, where does your company have the advantage?

Are there markets where you’re performing well that can be further expanded? Do you have a strong marketing strategy that you could ramp up to drive demand? Think of the external factors you’ve identified and where your business might have an opportunity to grow.

Research how to create a one-page marketing plan and other business marketing plan tips to help you further develop your strategies.

The threats part of SWOT analyses can also scare off many. Essentially, the goal here is to look at potential threats that could negatively impact your business. Again, this can include internal issues and external threats that you identify.

Internal threats can include lack of staff, budgetary constraints, and other threats. External threats, as an example, can include markets you are not taking advantage of, negative reviews, strong competitors, and supplier issues.

When breaking down the SWOT analysis, businesses should consider questions like: For strengths, what unique resources do we possess? For weaknesses, what areas need improvement to compete effectively?

Opportunities can be identified by analyzing market trends: What new customer needs can we meet? Lastly, for threats, consider external changes like technological shifts: How can these disrupt our business model?

By methodically examining these elements, a business can develop strategies that leverage their strong points, improve weaknesses, reinforce opportunities, and guard against external threats.

External and Internal Factors

When looking at internal versus external factors, it’s important to differentiate between the two and understand how they could impact your business. Let’s take a look at both below…

Internal Factors

Internal factors are crucial components of your business’s internal environment, encompassing various aspects such as team size, resources, budget, processes, equipment, and other internal elements.

These factors are under the direct control of your business and hold the potential to exert a significant impact on your outcomes. By effectively managing and optimizing these internal factors, you can enhance efficiency, productivity, and overall performance.

It is essential to understand your strengths and weaknesses in these areas to make strategic decisions and strengthen your competitive position.

Human resources play a vital role in internal factors. A skilled and motivated team can contribute to higher productivity levels and increased customer satisfaction. Properly allocating resources and implementing well-defined processes ensures smooth operations and streamlined workflows.

Conversely, challenges such as limited budgets can pose constraints on hiring and training, while outdated equipment may impede efficiency and hinder progress. By assessing and addressing the specific needs of your human resources, you can optimize their potential and drive positive outcomes.

Financials are another critical aspect of internal factors. Managing your budget effectively allows for the proper allocation of resources and investment in growth opportunities.

It enables you to make informed financial decisions, such as allocating funds for research and development, marketing campaigns, or infrastructure improvements.

Monitoring and analyzing your financial data provides insights into cash flow, profitability, and overall financial health, allowing you to identify areas of improvement and make strategic adjustments.

External Factors

External factors, in contrast, refer to elements that are outside of your control and exist in the external environment of your business. These factors can include market size, economic conditions, technological advancements, legal and regulatory changes, and consumer trends.

While you may not have direct control over these factors, it is essential to be aware of their potential impact on your business.

External factors can present opportunities or threats to your business. For example, a growing market or favorable economic conditions can create opportunities for expansion and increased demand for your products or services.

On the other hand, factors such as economic downturns or disruptive technological advancements can pose challenges and require adaptation in order to remain competitive.

By closely monitoring and understanding external factors, you can anticipate changes, adjust your strategies, and take advantage of opportunities while mitigating potential risks.

Home Depot Example

One successful instance of SWOT analysis can be observed in the case of Home Depot. The company conducted a comprehensive evaluation of its internal strengths and weaknesses, as well as external factors that posed potential threats to its market position and growth strategy.

Home Depot identified several noteworthy strengths, including high-quality customer service, strong brand recognition, and positive supplier relationships. Conversely, its weaknesses were identified as a constrained supply chain, reliance on the U.S. market, and a business model that could be easily replicated.

Aligned with its weaknesses, Home Depot recognized various threats, such as the presence of close competitors, the availability of substitute products, and the condition of the U.S. market.

Through the SWOT analysis and other assessments, the company concluded that expanding its supply chain and global footprint would be essential for its growth and success.

By addressing its weaknesses and mitigating potential threats, Home Depot aimed to capitalize on its strengths and enhance its competitive position in the market.

How do You do a SWOT Analysis?

The following table breaks down the SWOT analysis that follows into simple steps, making it easy to understand and follow. It serves as a concise, clear guide, making the process less overwhelming and more manageable.

A SWOT analysis provides businesses with an outline of the current state and tangible areas to focus on for improved performance or development. Research how to perform a personal swot analysis if you are conducting a SWOT analysis for yourself. Here’s a step-by-step guide on how to do a successful business SWOT analysis:

Step 1: Gather Data

The first step in conducting a SWOT Analysis is to gather internal and external data about you or your company. Internal data includes financial statements, customer feedback surveys, and employee reviews, while external data may include industry trends and news reports from around the world.

This data will help identify your strengths and weaknesses as well as potential opportunities and threats in the environment.

Financial Statements

Financial statements are key for any company wanting to conduct a SWOT Analysis. These documents provide insight into your company’s revenue, expenses, assets, and liabilities. Knowing these numbers can help you identify where your company stands financially.

Employee Feedback

Employee feedback is an essential resource for any company looking to conduct an effective SWOT Analysis. This data can provide insight into the issues facing your business, as well as potential solutions that could be beneficial for the company.

Step 2: Brainstorm

Once you have gathered the necessary data, it’s time to start brainstorming around it. Break down the information into categories such as strengths, weaknesses, opportunities, and threats. Start by listing out any ideas that come up during the brainstorming process without any judgments or filters.

Don’t worry if some of these seem far-fetched or irrelevant. This list is simply meant as a starting point for further examination into each category.

Some of the strongest areas for your business could include a strong brand, motivated employees, an excellent track record with customers, a presence in multiple markets, and more.

As an illustration, let’s consider a hedge fund that has devised an exclusive trading strategy generating exceptional returns that outperform the market. The fund now faces the task of determining the most effective approach to utilize these outcomes in order to appeal to prospective investors and expand its investor base.

Similarly, for your business, notable strengths may encompass a well-established brand, a highly motivated workforce, a stellar history of customer satisfaction, a strong market presence across multiple sectors, and various other aspects that can help attract new investors.

Areas where you could stand to improve include communication, customer service, lack of employees with specific skill sets, limited resources, etc.

Potential areas of growth could include international expansion, increased market share in a certain region, new products, or a better customer experience.

External factors to keep an eye on could include new competition, changes in the economy, or shifting customer preferences.

Step 3: Analyze Strengths

The next step is analyzing the strength category by asking questions such as what are your main advantages, what resources do you have access to, or what makes your company stand out in the market. Looking at these inquiries objectively will allow you to gain insight into what makes you or your company successful.

Some of the main advantages could include a great reputation in the industry, a team of experienced employees, access to capital resources, and more.

What resources do you have access to that others in the market may not? This could include things such as experienced advisors, research and development teams, or reliable suppliers.

Unique Features

What makes your company stand out in the market? This could include a strong brand, state-of-the-art technology, or a diversified product line.

Step 4: Analyze Weaknesses

Continuing on from analyzing strengths comes looking at weaknesses within yourself or your organization. What processes could be improved?

Where can decisions be better informed? Allowing yourself and your team time to think about areas that need attention ensures that possible solutions can be discussed further down the line.

Improvements

Are there any processes that could be improved upon or streamlined? This can include anything from the way customer complaints are handled to the approval process for new projects.

Decision-Making

Are decisions being made with enough information? Having access to the right data is key for making informed decisions that will benefit the company.

Do you have access to the right experts that can help make better decisions or provide assistance in certain areas of the business? If not, what steps can be taken to obtain the necessary expertise?

Step 5: Identify Opportunities

In order to find potential opportunities for change and growth look toward external factors such as what new technologies are emerging, what regulations are changing, and whether there are gaps in current products or services providing space for improvement. Keeping up with current events opens your mind up to alternative options.

Step 6: Analyze Threats

External factors can also bring along with them possible threats. What competition exists in your market? Does anything pose a risk of disruption within existing services or products being provided? Monitoring all aspects of outside forces should be continuously done in order to optimize decision-making abilities when needed quickly.

Step 7: Construct an Action Plan + Implement Solutions

Applying possible solutions found through each of these steps comes down to constructing an action plan on how they can be implemented within your organization.

Writing out desired goals in regards to members responsible for obtaining them by certain dates set out beforehand coupled with methods of their achievement should lead towards meeting targets quickly and efficiently.

SWOT Analysis Template

Now that we’ve gone through some examples in different industries, how do you get started on creating a SWOT analysis of your own? Luckily, this kind of analysis is pretty easy to structure. You can create one using your computer or even just divide a piece of paper into four quadrants and start writing.

These videos by Starbucks and Tesla show how they performed SWOT analyses on their companies. These examples can give you real-life applications to get you started on your own SWOT analysis.

Watching how established companies like Starbucks and Tesla conduct their SWOT analyses provides valuable insights and practical examples. It can help you understand the intricacies of the process and effectively implement it in your own business scenario.

As a helpful tool, we’ve created a free SWOT Analysis template for different types of businesses. You can use them to get started with your analysis:

SWOT Analysis Examples

When trying to come up with a SWOT analysis for your own business, it’s sometimes easier to see what others in your industry are doing. Before conducting a SWOT analysis for your company, you can look at some examples below to get some inspiration.

SWOT Analysis Example: Small Business

Regardless of industry, it can be difficult for a small business to identify weaknesses, opportunities, and threats. Here’s a great example to help you understand how to structure your SWOT analysis:

Marketing SWOT Analysis

For businesses focusing on improving one specific aspect of the business, such as sales or marketing, here is a marketing SWOT analysis example that you can use as a starting point for your own SWOT analysis.

3. Company SWOT Analysis Example

For larger companies, it’s sometimes difficult to hone down and focus on strengths, weaknesses, opportunities, and threats because there are so many competing aspects. That’s why it can be helpful to look at a SWOT Analysis of a company example to help you structure your own.

SWOT Analysis Example for a Restaurant

Food service businesses tend to have their own unique challenges, so identifying potential strategies is often difficult. However, using a Restaurant SWOT analysis example, you can build off it and create a SWOT analysis for your business that’s reflective of the market.

Acting on Your Results

A SWOT analysis is a powerful tool for understanding the internal and external factors that are impacting your business and is useful for startups, along with a proper business plan. It’s important to use the results of the analysis to create actionable steps and set realistic timelines for reaching your goals.

By staying focused and organized, you can use a SWOT analysis to make analysis a part of your long-term business strategy to ensure the future success of your business. And if you don’t have a business plan, be sure to research how to write a business plan to help set your business up for success.

While on the subject of planning, make sure to also learn how to create a one-page marketing plan . With all the data you have from your SWOT analysis, you will be able to establish a more effective marketing strategy.

SWOT Analysis Tips

A strong SWOT analysis is about diving deep into your business and collating all the information in an organized way. The more you’re able to tap into what makes your business unique and what needs to improve, the more actionable your SWOT analysis will be.

Here are some tips to ensure you’re getting the most out of a SWOT analysis:

Don’t be Afraid

A good SWOT analysis is about confronting each part of the business: the good, the bad, and everything in between. Of course, it can be difficult to put down everything and objectively confront aspects of the business.

However, it’s important to move past that feeling and be truly objective about your business – that will ultimately help it improve.

Ask for Feedback

To make sure your SWOT analysis truly covers everything, ask for feedback and suggestions. Involving a mix of team members, including more senior and junior stakeholders, can help you spot problems you might not have known about.

Be Systematic

Sometimes, the easiest way to fill out a SWOT analysis is to have a system. That can mean going through internal issues across each quadrant first and then moving to external factors. Or you can choose to do two quadrants at a time, such as strengths and opportunities if that is easier.

Create Timelines

In order for your SWOT analysis to be actionable, you need to create timelines alongside to meet your goals. For all the opportunities you identify, what is a reasonable timeframe to make them happen? For threats, think about how close or far threats are so you can prioritize action items more realistically.

Learn Business Abbreviations and Acronyms

In order to make sure you’re accounting for everything in the business, it’s important to learn any business abbreviations or acronyms that are used in the industry, especially for external factors.

The Takeaways

As you can see, a SWOT analysis is an essential tool for businesses and organizations to evaluate their internal strengths and weaknesses, as well as external opportunities and threats.

By conducting a thorough SWOT analysis, businesses can gain valuable insights into their current position and make informed decisions to drive success and growth.

Whether it’s identifying areas for improvement, capitalizing on strengths, or mitigating risks, the SWOT analysis provides a structured framework for strategic planning and decision-making.

Utilizing the examples and free template provided in this article, businesses can effectively apply the SWOT analysis to enhance their competitiveness and achieve their goals.

Image: Envato Elements

© Copyright 2003 - 2024, Small Business Trends LLC. All rights reserved. "Small Business Trends" is a registered trademark.

How to Do a SWOT Analysis for Better Strategic Planning

6 min. read

Updated October 27, 2023

Conducting a SWOT analysis of your business is a lot more fun than it sounds. It won’t take much time, and doing it forces you to think about your business in a whole new way.

The point of a SWOT analysis is to help you develop a strong business strategy by making sure you’ve considered all of your business’s strengths and weaknesses, as well as the opportunities and threats it faces in the marketplace.

• What is a SWOT analysis?

S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an organized list of your business’s greatest strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal to the company (think: reputation, patents, location). You can change them over time but not without some work. Opportunities and threats are external (think: suppliers, competitors, prices)—they are out there in the market, happening whether you like it or not. You can’t change them.

Existing businesses can use a SWOT analysis, at any time, to assess a changing environment and respond proactively. In fact, I recommend conducting a strategy review meeting at least once a year that begins with a SWOT analysis.

New businesses should use a SWOT analysis as a part of their planning process. There is no “one size fits all” plan for your business, and thinking about your new business in terms of its unique “SWOTs” will put you on the right track right away, and save you from a lot of headaches later on.

Looking to get started right away? Download our free SWOT Analysis template.

In this article, I will cover the following:

• How to conduct a SWOT analysis
• Questions to ask during a SWOT analysis
• Example of a SWOT analysis
• TOWS analysis: Developing strategies for your SWOT analysis

To get the most complete, objective results, a SWOT analysis is best conducted by a group of people with different perspectives and stakes in your company. Management, sales, customer service, and even customers can all contribute valid insight. Moreover, the SWOT analysis process is an opportunity to bring your team together and encourage their participation in and adherence to your company’s resulting strategy.

A SWOT analysis is typically conducted using a four-square SWOT analysis template, but you could also just make lists for each category. Use the method that makes it easiest for you to organize and understand the results.

I recommend holding a brainstorming session to identify the factors in each of the four categories. Alternatively, you could ask team members to individually complete our free SWOT analysis template, and then meet to discuss and compile the results. As you work through each category, don’t be too concerned about elaborating at first; bullet points may be the best way to begin. Just capture the factors you believe are relevant in each of the four areas.

Once you are finished brainstorming, create a final, prioritized version of your SWOT analysis, listing the factors in each category in order of highest priority at the top to lowest priority at the bottom.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

I’ve compiled some questions below to help you develop each section of your SWOT analysis. There are certainly other questions you could ask; these are just meant to get you started.

Strengths (internal, positive factors)

Strengths describe the positive attributes, tangible and intangible, internal to your organization. They are within your control.

• What do you do well?
• Positive attributes of people , such as knowledge, background, education, credentials, network, reputation, or skills.
• Tangible assets of the company , such as capital, credit, existing customers or distribution channels, patents, or technology.
• What advantages do you have over your competition?
• Do you have strong research and development capabilities? Manufacturing facilities?
• What other positive aspects, internal to your business, add value or offer you a competitive advantage?

Weaknesses (internal, negative factors)

Weaknesses are aspects of your business that detract from the value you offer or place you at a competitive disadvantage. You need to enhance these areas in order to compete with your best competitor.

• What factors that are within your control detract from your ability to obtain or maintain a competitive edge?
• What areas need improvement to accomplish your objectives or compete with your strongest competitor?
• What does your business lack (for example, expertise or access to skills or technology)?
• Does your business have limited resources?
• Is your business in a poor location?

Opportunities (external, positive factors)

Opportunities are external attractive factors that represent reasons your business is likely to prosper.

• What opportunities exist in your market or the environment that you can benefit from?
• Is the perception of your business positive?
• Has there been recent market growth or have there been other changes in the market the create an opportunity?
• Is the opportunity ongoing, or is there just a window for it? In other words, how critical is your timing?

Threats (external, negative factors)

Threats include external factors beyond your control that could place your strategy, or the business itself, at risk. You have no control over these, but you may benefit by having contingency plans to address them if they should occur.

• Who are your existing or potential competitors?
• What factors beyond your control could place your business at risk?
• Are there challenges created by an unfavorable trend or development that may lead to deteriorating revenues or profits?
• What situations might threaten your marketing efforts?
• Has there been a significant change in supplier prices or the availability of raw materials?
• What about shifts in consumer behavior, the economy, or government regulations that could reduce your sales?
• Has a new product or technology been introduced that makes your products, equipment, or services obsolete?
• Examples of a SWOT analysis

For illustration, here’s a brief SWOT example from a hypothetical, medium-sized computer store in the United States:

See our SWOT analysis examples article for in-depth examples of SWOT analyses for several different industries and business types or download our free SWOT analysis template .

• TOWS analysis: Developing strategies from your SWOT analysis

Once you have identified and prioritized your SWOT results, you can use them to develop short-term and long-term strategies for your business. After all, the true value of this exercise is in using the results to maximize the positive influences on your business and minimize the negative ones.

But how do you turn your SWOT results into strategies? One way to do this is to consider how your company’s strengths, weaknesses, opportunities, and threats overlap with each other. This is sometimes called a TOWS analysis.

For example, look at the strengths you identified, and then come up with ways to use those strengths to maximize the opportunities (these are strength-opportunity strategies). Then, look at how those same strengths can be used to minimize the threats you identified (these are strength-threats strategies).

Continuing this process, use the opportunities you identified to develop strategies that will minimize the weaknesses (weakness-opportunity strategies) or avoid the threats (weakness-threats strategies).

The following table might help you organize the strategies in each area:

Once you’ve developed strategies and included them in your strategic plan, be sure to schedule regular review meetings. Use these meetings to talk about why the results of your strategies are different from what you’d planned (because they always will be) and decide what your team will do going forward.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

Related Articles

9 Min. Read

How to Create a Unique Value Proposition + Examples

7 Min. Read

3 Key Steps to Create a Promotional Plan

3 Min. Read

How to Write an Effective Marketing Plan

8 Min. Read

How to Create A Digital Marketing Plan and Strategy

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

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.

Subscribe for more great strategic content 💌

Subscribe now for exclusive content from imd.

The relentless pace of change in technology, customer demands, and geopolitics are adding new challenges to an already complex business landscape. This is particularly evident in Asia, with a recent PwC study reporting that 63% of Asia Pacific CEOs think their companies will stop being economically viable within a decade if they continue on their […]

Strategic planning aligns the organization with a common understanding of what they want to achieve and how they will get there with daily operations. It’s taking a company’s vision and breaking it into mid-term and long-term goals. In contrast to strategic planning, business planning focuses on short-term goals. But a strategic plan sets priorities to […]

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 […]

Planning is an important part of most people’s days. Even if you’re the most driven person alive, it’s easy to get sidetracked if you don’t have an action plan.  Maybe you need to train for a marathon and sort the mail, but you binge-watch a new TV show instead. The next day, you’re behind on […]

• Design for Business
• Most Recent
• Presentations
• Infographics
• Data Visualizations
• Forms and Surveys
• Video & Animation
• Case Studies
• Digital Marketing
• Design Inspiration
• Visual Thinking
• Product Updates
• Visme Webinars
• Artificial Intelligence

SWOT Analysis: 31 Editable Templates & Examples

Written by: Brian Nuckols

A SWOT analysis is a planning and marketing tool that helps businesses identify their strengths, weaknesses, opportunities, and threats within an industry. It can appear in a simple table or as a presentation to help develop a marketing strategy or a due diligence report.

In this article, we’ll guide you through all your questions about SWOT analysis, including how to create one to identify your standing in the market. We also provide a list of 31 SWOT analysis templates formatted into multi-slide presentations , single-sheet worksheets , or even infographics .

The best part? You can edit all of these SWOT analysis examples online, share them with your team or download them for free. Pick the SWOT template you like from the list below and start editing your template.

Here's a short selection of 8 easy-to-edit SWOT analysis templates you can edit, share and download with Visme. View more below:

Table of Contents

What is a swot analysis, swot analysis: internal and external factors, swot analysis example, how to write a swot analysis, 31 editable swot analysis templates to use, swot analysis faqs.

As we said earlier, a SWOT analysis is a strategic planning technique and marketing tool that identifies Strengths, Weakness, Opportunities and Threats of a business, project or person. It’s often portrayed in a four-section grid.

The main purpose is to help you focus on key areas that can positively and negatively affect your chances of success by identifying the forces influencing a strategy, action, or initiative and ultimately making more effective decisions.

SWOT analysis can be used internally (within an organization) or externally (outside of an organization) to aid decision-making. It is not limited to external or internal factors, and depending on the type of strategic planning required, you might need to perform a SWOT analysis on one or both of these factors.

The example below shows how to use internal and external factors for a SWOT analysis, as well as how these factors differ from each other.

Internal Factors (Strengths and Weaknesses)

These are characteristics or resources within your company that directly influence its operations, performance or purpose. These are usually within your company’s control so they can be modified, removed or improved if needed.

A SWOT analysis that examines internal factors can look like the following:

• Strengths: Brand reputation, loyal customer base, workflows and processes, talent, property, or technology or software used.
• Weakness : Outdated software, ineffective workflows, skill gaps, miscommunication, or lack of brand awareness.

External Factors (Opportunities and Threats)

External factors are elements, people and situations that are outside of your company’s control and can have an impact on its goals, marketing and operations. Since you have no control over external factors you can only be reactive rather than proactive.

A SWOT analysis using external factors can look like the following:

• Opportunities: Global market expansion, strategic partnerships and alliances, government incentives or better sourcing of materials and services.
• Threats: Changes in consumer behavior, geopolitical tensions affecting operations, or technological disruptions.

Now that we have a good understanding of what a SWOT analysis is and the key factors that can be used to determine strengths, weaknesses, opportunities, and threats, let’s take a look at a real-life SWOT analysis example using a top brand like Amazon.

Image Source

Despite how simple and effective a SWOT analysis document can be, many people still struggle with writing one. Writing an effective SWOT analysis requires research, critical thinking and clear and concise statements.

To write a good SWOT analysis in business or for projects, follow this step-by-step guide below.

1. Understand the Purpose : Define the main objective of your SWOT analysis. It should be a SMART goal so that when you conduct the analysis, you’re focused on accomplishing a specific agenda.

2. Research and Data Collection: Conduct extensive research beforehand using internal or external sources. These could be reports, market research , customer or employee feedback, survey results, competitor analysis , industry trends, positioning, social equity, etc.

3. Organize Your Data: As you gather your findings, be sure to answer the following questions with detailed and concise answers:

• Additional questions: What do we do well? What unique resources do we have?
• Additional questions: What could we improve? Where do we have fewer resources than competitors?
• Additional questions: What market trends can we take advantage of? Are there any upcoming events that align with our strengths?
• Additional questions: What obstacles do we face? Are there external factors that could hurt our business?

4. Document the Analysis : Evaluate the list of strengths, weaknesses, opportunities, and threats and prioritize them based on their potential impact on the business.

5. Draw Conclusions and Make Recommendations: Summarize the key insights into a SWOT format and create actionable steps to leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats.

6. Review and Revise the Results: Once you’re done, take the time to revise your SWOT to ensure it accurately reflects your current situation and meets your overall goal.

Template #1: Personal SWOT Analysis

The first template we're going to explore is for a personal SWOT analysis. You can use this editable SWOT analysis template when it’s time to review the state of your career, health or relationships.

On a personal level, you are more likely to succeed when you maximize your potential. You are also better off knowing aspects of life that are more challenging before they become big problems.

The personal SWOT analysis is a good way to get started with diagramming your personal development journey.  Use this SWOT analysis template to map external factors and understand your internal strengths.

Template #2: SWOT Analysis Worksheet

Not sure how to get started with your SWOT analysis? This worksheet template helps you by asking a few of the right questions for each section of the analysis.

You can easily fill this and all our SWOT analysis forms online. Customize them with your brand colors and fonts and print them to fill out separately. This is also perfect for adding to a marketing plan document for added industry and competitive analysis.

Hey marketers! Need to create scroll-stopping visual content fast?

• Transform your visual content with Visme’s easy-to-use content creation platform
• Produce beautiful, effective marketing content quickly even without an extensive design skillset
• Inspire your sales team to create their own content with branded templates for easy customization

Sign up. It’s free.

Template #3: Business SWOT Analysis 

The SWOT analysis is a powerful tool for businesses that need to embark on strategic planning for upcoming initiatives. The SWOT analysis template will help you take advantage of this powerful tool without wasting precious resources on design. 

When you need to analyze your company, a business SWOT analysis is a powerful tool. The SWOT diagram allows you to uncover insights about your company that will help you capture more market share.

Because the SWOT analysis is a versatile tool, you can utilize it to work within a large corporate company or a small business context.

Template #4: Customer Service SWOT Analysis

Match your SWOT analysis to your industry. With this template, we've used unique illustrations that help showcase what your business does, showing that you can be more creative with your SWOT analysis design if you prefer.

Customize this editable SWOT template to match your industry and your business offerings. Then input your own core strengths, internal weaknesses, external opportunities and threats.

Template #5: Hotel SWOT Analysis

A SWOT analysis chart is a useful planning tool for improving business strategy when you are managing a hospitality business.

A SWOT matrix template can be beneficial when deciding whether to embark on a particular venture or strategy by visualizing the pros and cons. This ability to diagram the pros and cons of potential initiatives helps manage the internal factors in the hotel planning process.

Within a hotel context, the SWOT diagram helps in the decision to buy new software, invest in new in-room amenities, invest in social media or refurbish your infrastructure. 

A crucial benefit a SWOT analysis can unlock for your hotel is the power of proactive action.  Instead of reacting to challenges passively, a SWOT analysis helps you manage your hotel actively.

Template #6: Creative SWOT Analysis

As a creative, you can utilize a SWOT analysis diagram template to brainstorm an action plan to take your career to a new level.

The SWOT diagram is a way to utilize self-analysis to improve your work. Additionally, the diagram helps you find a sense of direction in your business.

It's easy to fall into habitual patterns and fail to innovate. With a SWOT analysis, you can bring new trends and opportunities to the forefront of your brainstorming process. 

Examples of new opportunities include new places to show your work, streamlined marketing practices or adding a new medium to your offerings.

Template #7: Restaurant SWOT Analysis

SWOT analyses are perfect for any industry, including restaurants. Easily customize this creative SWOT template by adding photos of your own menu dishes, matching them to your brand and inputting your own restaurant's industry information.

Opportunities here could be that there are no similar cuisines offered nearby, while threats could be that you're walking into a saturated industry. Consider how you can make the most of each of these.

Template #8: Nonprofit SWOT Analysis

Even nonprofit organizations need a SWOT analysis chart to see if their mission makes sense at the time and place they're starting out. Knowing the strengths and weaknesses of your up-and-coming organization can help you make a stronger impact in the market.

Use interactive features in your SWOT analysis layout to engage the stakeholders in the information.

Template #9: School SWOT Analysis

When you manage a school’s operations as an administrator or executive, it's vital to stay on top of all the moving parts. A school SWOT analysis will help you do your job exceptionally. 

A SWOT analysis is a useful tool for administrators who want to optimize the functioning of their schools. 

A SWOT analysis is a diagram that can inspire administrators, teachers and staff to study the tweaks they can make in day-to-day operations to improve their culture and results. Generally, a SWOT analysis is used in schools before an audit or assessment. 

The SWOT analysis chart is a practical way to study the systems and procedures that exist within the organization.

Template #10: SWOT Analysis Infographic

This is a basic SWOT analysis infographic template that you can use for any business in any industry. Easily replace all of the existing content with strengths and opportunities that match your own business and the industry that you're in.

Template #11: Nonprofit SWOT Analysis

Strategic planning is a crucial function when it comes to building capacity for your non-profit. If your goal is to increase the impact and bring your mission statement to life, a SWOT analysis is a good investment of your time.

If you want to achieve your nonprofit's mission statement, reviewing your existing strengths and identifying any obstacles to growth is crucial. 

A SWOT analysis is a structured tool to help you uncover insights and discover aspects of your organization that you had never considered.

Template #12: Data Science SWOT Analysis

This data science SWOT analysis template shows just how creative you can get with your SWOT analysis template design. Add a stock photo to your background that's relevant to what your business does to make it more unique.

Template #13: Consulting Firm SWOT Analysis

In consulting firms, information and strategy are clear competitive advantages. This competitive advantage is why a well-done SWOT analysis is so valuable.

Imagine that you are creating a proposal for a client. You know the competition will be fierce for this account. What do you express to make sure the potential client knows all the things that set your firm apart? 

This need to have clarity when it comes to expressing what sets you apart is where the SWOT analysis can help your consulting firm.

Template #14: Personal SWOT Analysis

It can even be a great idea to create a personal SWOT analysis when you're working to build your personal brand. This can also be helpful when trying to find a job or improve your overall career performance. What are your strengths, and where can you improve?

Template #15: Cybersecurity SWOT Analysis

Cybersecurity firms are in the business of analyzing threats. This threat detection capability will help you bring some of those skills to bear with the SWOT analysis. 

As a Cybersecurity professional, you spend time thinking about security breaches and cyber attacks . Finding the time to think about the bigger picture of your business can prove challenging. This time scarcity problem is one reason that the SWOT analysis is so valuable. 

The SWOT matrix is a structured grid that allows you to uncover a lot of information quickly. 

This low time cost will help you find high-leverage opportunities or fixes without setting you back when it comes to the rest of your workload.

Template #16: Retail SWOT Analysis

In the retail space, it can be challenging to stay ahead in a competitive marketplace. A SWOT analysis will help you deal with competitors and find creative ways to earn your customer’s loyalty. 

As a retail professional, knowing exactly what strategies to use to increase your revenue can be challenging. However, by using tools like the retail SWOT analysis, you can uncover new opportunities. 

With this SWOT diagram template, you may learn things about your brand image or business processes that significantly impact your bottom line.

Template #17: Employee SWOT Analysis

You can also create a SWOT analysis for your employees. If you're evaluating their performance, consider doing so with a template like this one. Input their strengths and weaknesses and how you can help them improve.

Offer each employee a SWOT diagram template for them to analyze their own characteristics. Help them improve on their strengths and overcome their weaknesses. Use dynamic fields and master slides to set up the same template for all your employees. Easily change their name and personal information on their SWOT analysis layout.

Template #18: Ride Share SWOT Analysis

If you're starting a new business, especially in a saturated industry, you absolutely need to create a SWOT analysis. This editable SWOT analysis template will help you find your unique angle so that you're able to compete with already established brands in your market.

Template #19: HR SWOT Analysis

As an HR professional, the discovery of more efficient business processes is precious to your business. Working through an HR SWOT analysis is one of the best ways to discover new opportunities to bring your organization value.

Whether you are developing or revising your department’s strategic plan, a SWOT analysis is an integral part of the process. Through diagramming the strengths, weaknesses, opportunities and threats to your organization, the process will generate insights into your next steps.

Template #20: SaaS SWOT Analysis

With your SaaS marketing strategy , you'll want to create a SWOT analysis that allows you to figure out what makes your tool stand out amongst the rest. Include some unique opportunities for growth and your marketing angle that will get potential customers interested in your brand over the others.

Your Visme account includes a large variety of SWOT analysis example templates for your team to choose from. Select the one that best matches your needs and start highlighting strengths, weaknesses, opportunities and threats.

Template #21: Marketing SWOT Analysis

Marketing strategy is a mission -critical function for every business. When you sit down to check off the tasks on your to-do list, it’s easy to get lost in the daily grind. Utilizing a tool like a marketing SWOT analysis will help you stay connected with the big picture. 

The marketing SWOT analysis tool is a great way to get started with streamlining your marketing strategy.

When it comes to forging a marketing strategy for your campaigns, there is a ton of planning that goes into the process. A SWOT analysis will help you make sure all the potential opportunities your team can take advantage of are included in the process. 

Likewise, the SWOT diagram will help you ensure that any challenges your team needs to be aware of are addressed in each campaign.

Template #22: Digital Marketing SWOT Analysis

Take a page out of this SWOT analysis book and include a useful stat about your industry at the top. This will help you fill out the rest of your analysis and ensure you know exactly where you stand in the market.

Get started with a SWOT analysis sheet straight away if you want your business to flourish.

Template #23: Web Development SWOT Analysis

Web development firms have many opportunities to grow their businesses in existing markets. Additionally, there may be hidden opportunities that are currently latent and unexplored. An editable SWOT presentation template for your firm can help you explore both visible and hidden demand for your services.

Web startups can use a SWOT analysis table to significant effect. You can utilize the diagram to determine how your firm is doing when it comes to customer service. Additionally, you can discover if there are marketing opportunities you can take advantage of in future campaigns.

Template #24: Ecommerce SWOT Analysis

Ecommerce brands also need a SWOT analysis. How unique are your products? What do your competition's websites look like? How can you stand out? Additionally, consider conducting a PEST analysis to explore broader external factors influencing your business environment. Talk about all of this and more when editing this SWOT analysis table template.

Template #25: Startup SWOT Analysis

As a startup founder or early employee, you know about the potential of disruptive innovation. A SWOT analysis can reveal helpful insights that open new horizons of disruption and opportunity.

The benefit of a SWOT analysis for your startup is that it gives you the full picture. On the one hand, you can take a complete inventory of where you are right now. On the other, it can help you see what’s emerging for your startup in the future. 

As you work through the process, consider all the aspects that make up your startup. Think of your strengths and any potential weaknesses. Make sure to take an inventory of all existing functions, including parts of your organization that may be neglected. Use one of our SWOT templates to document all the information.

Template #26: Retail SWOT Analysis

How can you make your retail store stand out from the crowd? A SWOT analysis can provide you with the details to ensure your store layout, prices, sales, discounts and more are perfectly in line with your industry and will target the right audience.

Template #27: Online Banking SWOT Analysis Template

As an online banking solution, there's more and more noise each year. You need to create a SWOT analysis to understand the frustrations and pain points that many of your target customers have with their existing online banking.

Find out what your business can do to make online banking as easy as possible in your opportunities section and go for it. This is the best way to draw in a larger audience.

Template #28: Engineering SWOT Analysis

Engineering is a great field to utilize the SWOT analysis. The diagramming process can help make sure you are succeeding in crucial operational details. Additionally, these SWOT analysis templates can make sure you are not leaving any opportunities behind. Utilizing this strengths and weaknesses analysis template to delve deeper into internal factors affecting your engineering projects.

Project managers at engineering firms have two competing priorities. First, you have to make sure everything stays agile, on track and everyone is executing. On the other hand, you have to make space for creativity, strategy and making sure nothing gets stale. 

These competing priorities are why the SWOT analysis is so valuable for engineering teams. 

Template #29: Real Estate SWOT Analysis

The real estate industry also needs a SWOT analysis to determine what kind of market they're in. Is it a good time to buy or sell? This SWOT analysis template example can help homeowners, home buyers and real estate agents figure that out.

Template #30: Cloud Solutions SWOT Analysis

As a cloud solutions firm, you sell a specialized and crucial product to your customers. A SWOT analysis can help you refine your messaging and grow your business. 

As a company manager or founder of a cloud service firm, it can feel like you always have new problems to solve. Whether it’s fixing inefficiencies or improving your services, there is still the potential to optimize. 

Using SWOT analysis, you can shift from reacting to problems as they happen to addressing things ahead of time. Using this cloud service SWOT analysis template example is a great way to get started with the diagramming process.

Template #31: Fashion Brand SWOT Analysis

As a fashion brand, you need to know what your competition is up to and what the state of your industry is so that you have the best chance at success. What makes your brand unique? What are the potential threats to your business? Having a clear understanding of where you stand can improve your chances of a successful business.

This SWOT analysis template example is just what you need to take your fashion brand to the next fashion week.

Before we get into the templates, let’s cover some frequently asked questions.

What is a SWOT analysis?

A SWOT analysis is a living document that highlights the four essential characteristics of a business, campaign, or strategy at a point in time. The letters SWOT stand for Strengths, Weaknesses, Opportunities and Threats.

The analysis is conducted with your team as part of the planning and development stage. By including internal and external characteristics, your team and stakeholders can see the big picture of the current situation.

• Strengths = Strong internal characteristics
• Weaknesses = Weak internal characteristics
• Opportunities = Opportunities for external growth
• Threats = Threats by external obstacles

Why is a SWOT analysis important?

SWOT analyses are actionable decision-making tools. They form the foundation for how you’ll develop strategies, formulate roadmaps, create teams and set goals. When you skip conducting and documenting a SWOT analysis, it’s difficult to have a vision for the future or even a good grasp on the current market and position.

How do I write a SWOT analysis?

A Swot Analysis document—like the templates below—summarizes an analysis previously done with your team. The overview is recorded in a professionally designed document to share with stakeholders, team members or clients. To lay down the content for the SWOT analysis, answer these questions in a group discussion.

• What are your strengths?
• What are your weaknesses?
• What are the Opportunities
• What are the Threats

For some answers, you’ll need to do some research, including competitor analysis , market analysis , market status, positioning, social equity, etc.

The SWOT analysis layout looks like a four-sectioned grid. Strengths and weaknesses are next to each other, as are the opportunities and threats.

What are the three major benefits of a SWOT analysis?

Creating a SWOT analysis has plenty of benefits for any business. Here are three of the most influential for choosing a SWOT analysis.

1. Versatility

A SWOT analysis’s versatility is one of its greatest characteristics. First, it can be applied to any business regardless of size, situation, or scope. They can be incorporated into high-level decision-making or to help strategize a social media campaign.

Second, they are inexpensive to make and simple to conduct. Finally, a SWOT document or presentation slide can easily form part of your branded material inside a Visme workspace.

2. Four stories in one

Another benefit of a SWOT analysis sheet is that you get four stories about the same topic in one simple grid. When making decisions, having information is essential for the big picture and the details.

Depending on the project, some stories will be more important than others. The strengths and weaknesses help you see what strengths to rely on and what weaknesses to be careful with. The opportunities and strengths tell the story of growth and obstacles to overcome.

3. Improves communication through data

Doing the work to get the most out of the SWOT analysis includes researching and collecting data. The analysis of both quantitative and qualitative data not only fills in the section of the SWOT analysis but also fosters better communication between team members and stakeholders.

The collected data in the SWOT analysis becomes a communication point with four stories for decision-making and effective strategy.

What are the limitations of SWOT analysis?

Like any business tool, the SWOT analysis does have some limitations. These are three you need to know about

1. It can get overwhelming

Conducting a SWOT analysis can be overwhelming when there are too many people involved or there isn’t a moderator to take control of the situation. The initial list of weaknesses, strengths, opportunities and threats in the swot analysis layout will likely be very long.

When the list is too broad, it’s not practical or efficient. Choices must be made according to the purpose of the analysis and what is most important or needs immediate attention.

2. Differing opinions

Another limitation of creating a SWOT analysis with too many people is that there will be differing opinions on the same topic. This is where it’s important to have the data to back up every list item.

In some cases, the differing opinions during the analysis will take the conversation on a tangent, away from the analysis at hand. It’s another reason to assign a moderator during the analysis.

3. Lack of prioritization

Finally, another major limitation of a SWOT analysis is that it needs prioritization of items.

A SWOT analysis chart template helps you document the answers to the questions mentioned above, but it doesn’t offer insight into what has to be done next. Yet another reason there needs to be a person in charge who knows how to prioritize results and take action on them.

What are the rules for a successful SWOT analysis?

Don’t swot in a silo.

Don’t conduct a SWOT analysis on your own. To get a real idea of the big picture, there needs to be a variety of voices and sources of information in the conversation. With Visme, you can share a live project or collaborate synchronously.

Don’t Rely On Opinions; Get The Data

Data must back every characteristic written down in the SWOT analysis grid. An opinion isn’t good enough.

Keep It Simple

Don’t go overboard on the number of characteristics in each section. Five is a good quantity. Formulate each item as a short sentence or even one word, if possible. Use SWOT templates to save time.

Be Specific

Keep your eye on the goal of the SWOT analysis. Stay close to the main topic in question. Sometimes it's better to conduct separate analyses to gain a better understanding of a situation.

Don’t Stop At SWOT

An effective SWOT analysis doesn’t stop at creating the document to include in a report or presentation. It needs continued action to assess all four sections and make decisions toward growth.

How Often Should a SWOT Analysis Be Performed?

No hard rule says when or how often you should perform a SWOT analysis. The best way to know when is the right time is when you need to know the current situation of any aspect of your business.

Any new campaign or strategy needs a SWOT analysis. Ongoing business topics need a SWOT analysis at regular intervals—like quarters—or when things aren’t performing to their best, and it's time to reassess. A SWOT analysis is a great reassessment tool at any moment in your business.

Create your own set of branded SWOT templates and SWOT analysis sheets for your team to use inside your Visme workspace.

Not sure how to choose the best SWOT analysis template for your needs? Select a few that you think will work with your brand style and do a poll with your team to choose the final one.

Don’t forget that everything in the Visme  SWOT templates is editable and customizable to match your brand.

Ready to Design Your Own SWOT Analysis Online?

If you made it to this section of the article, you might already know that it is time to create a SWOT analysis with Visme. However, if you are unsure if it is time to get started, it is time to take the next step. 

Sign up for a free Visme account today and get started with your SWOT analysis. 

Create your own SWOT analysis in minutes.

Trusted by leading brands

Recommended content for you:

Create Stunning Content!

Design visual brand experiences for your business whether you are a seasoned designer or a total novice.

About the Author

Brian Nuckols is a writer working in Pittsburgh, Pennsylvania. He enjoys communicating visionary ideas in clear, action oriented language. When he’s not working on content for a transformative company you can find him analyzing dreams, creating music, and writing poetry.

How to Perform a SWOT Analysis for a Business

By Kate Eby | April 26, 2023

• Share on Facebook
• Share on LinkedIn

Link copied

A SWOT analysis helps you identify areas of strengths and weaknesses in your business and take advantage of opportunities and mitigate threats. Leaders perform a SWOT analysis before starting a project or implementing a strategy.

With help from our experts, we’ll teach you about a SWOT analysis , provide examples from three different industries , and highlight common mistakes to avoid. We also include a downloadable SWOT analysis starter kit to help you get started.

How to Do a SWOT Analysis

To perform a SWOT (strength, weakness, opportunities, and threats) analysis, assemble a matrix and take an objective look at your business. Write down your observations, summarize your findings, and plan your next steps together with your team.

“A SWOT analysis is designed to shed light on four separate aspects of your business and help in strategy formation and project planning. In order to perform this analysis comprehensively, each factor must be examined in equal measure,” explains Max Wesman , the Founder of GoodHire. 

We’ve outlined the steps necessary for completing a SWOT analysis:

• Assemble Your Team Include a diverse group in your analysis to get the best results. Ask for input from people on different teams and at varying employee tiers and demographics to get an objective look at your business. “Plan a half-day strategy session with your team and have each member come ready to present their own SWOT analysis of a particular product or opportunity. You’ll be surprised by the range of new ideas it generates. And you can use the exercise to formulate an aggregate SWOT that you all buyinto together,” suggests Jack Colletti , the Founder of Colletti Labs.
• Set Up Your Matrix Use a template, whiteboard, shared online workspace, or paper and pen to create a matrix. For free template ideas and downloads, check out our collections of SWOT templates available in PowerPoint , Microsoft Word , Google Docs , and Google Slides formats.

• Strengths: To identify your strengths, ask yourself what you’re doing well and what your customers and employees like about your business. 
• Weaknesses: To identify weaknesses, look at places where you have fallen short of projections. Read reviews of your business and pay attention to critical customer feedback. 
• Opportunities: To identify opportunities, start with your long- and short-term goals. Ask yourself if there are new products or services you can add to your lineup to set you apart, any gaps in the market you can fill, or any areas that could benefit from a different allocation of resources.
• Threats: To identify threats to your business, keep an eye on your competition, upcoming legislative changes, and financial records and projections. Pay attention to the potential for negative media and social media coverage due to your business practices, as well.  
• Organize and Summarize As a group, rank items by how actionable they are or by their impact. “Be sure that you don’t make your list too long to manage,” suggests Rossi. Choose the top five or six responses for each quadrant to help focus the discussion and analysis.
• Plan Your Next Steps Create action items and a plan for moving forward. Depending on the results of your analysis, this will likely mean some combination of bolstering your strengths, shoring up your weaknesses, taking advantage of opportunities, and mitigating threats.
• Store the Analysis for Easy Reference It is a good idea to perform a SWOT analysis regularly — depending on your business size, you might repeat the practice annually or quarterly. Before performing a new SWOT analysis, review the previous one and see where you’ve made improvements. “Routinely revisiting your SWOT analysis ensures that your evaluation is accurate and up-to-date with the current state of the market,” says Wesman.

SWOT Analysis Starter Kit

Download the SWOT Analysis Starter Kit

We’ve created this starter kit to give you the necessary tools to think through and conduct a SWOT analysis for your business. You’ll find SWOT templates in multiple formats, a checklist of actions to take and questions to ask, and a presentation template. All of these templates are fully customizable and can be adapted for personal decision-making. Download each template individually or as a complete kit.

Included in this download, you’ll find:

• A blank animated SWOT analysis template for PowerPoint to help create an engaging SWOT presentation.
• A blank horizontal, landscape-oriented SWOT analysis template for Microsoft Word to create an eye-catching display or a handout with plenty of room for text.
• A blank simple, portrait-oriented SWOT matrix template for Microsoft Word and Google Docs for easy brainstorming and sharing.
• A blank custom photo SWOT matrix template for PowerPoint and Google Slides to create a dynamic, personalized presentation of your analysis.
• A SWOT analysis checklist for Microsoft Word so that each step of your analysis goes off without a hitch.
• A common SWOT analysis examples checklist for Microsoft Word to reference and copy from when completing your SWOT template.
• A group SWOT analysis presentation for PowerPoint to help facilitate a group SWOT analysis meeting.

SWOT Analysis Examples

A SWOT analysis can help a wide variety of businesses identify their strengths, weaknesses, opportunities, and threats. We’ve collected some SWOT analysis examples that demonstrate how they’re used in construction, technology, and retail industries.

Construction Company SWOT Analysis Example for Google Docs

Download the Simple Colorful Construction Company SWOT Template for Google Docs Download the Simple Colorful Construction Company SWOT Template for Google Docs with Sample Data

This simple but colorful SWOT template includes example data for a construction company concerned about its growth. In the sample, the company has identified the experience of their staff as a strength, as well as their growth as a business over the last 15 years. They know they need to be more open to adopting new technology, and they acknowledge they have no marketing budget and only attract new clients by word-of-mouth. They use this info to focus their opportunities on leveraging their existing staff to train new teams, and creating a specific budget for marketing. Finally, they have identified the rising costs of labor and the chance of public backlash to a project they are working on as threats to their business.

Technology Company SWOT Analysis Example for PowerPoint

Download the Blank Animated Technology SWOT Analysis for PowerPoint Download the Animated Technology SWOT Analysis Template for PowerPoint with Sample Data

This animated SWOT analysis template is excellent for showing off your SWOT findings in a meeting or presentation setting. It includes animations to reveal each quadrant of your matrix as you speak. This template includes sample data for a large technology company that has recognized its worldwide presence and growing customer base as strengths, and the requirements of localization and employee retention as weaknesses. The organization is looking ahead to the opportunities presented by decreased labor costs in emerging markets, but also paying attention to the threat of cybersecurity and potential backlash in their home country due to their outsourcing of labor and manufacturing.

Retail Company SWOT Analysis Example for Microsoft Word

Download the Blank Horizontal Retail SWOT Template for Microsoft Word Download the Horizontal Retail SWOT Template for Microsoft Word with Sample Data

This horizontal-oriented SWOT template includes example data for a retail store. In the sample version of the template, the store has outlined its strengths but also noted concerns about the rising costs of rent and the abundance of big-box stores and included those in the threats section. They have identified opportunities as participation in local events and the possibility of a second storefront. The store also recognized that it could improve its social media efforts and the difficulty in competing with larger, online retailers.

What Is a SWOT Analysis?

A SWOT analysis is a strategic assessment tool that weighs strengths, weaknesses, opportunities, and threats to aid in decision-making. A SWOT analysis can help guide you to better-informed conclusions that are more likely to produce long-term benefits.

Invented by Albert Humphrey at the Stanford Research Institute in the 1960s, the SWOT analysis framework has been adopted by businesses and individual decision-makers worldwide. Humphrey’s framework prioritizes the analysis of internal strengths and weaknesses; the related TOWS analysis model flips this on its head and focuses on external opportunities and threats. Another external analysis model, the PEST (political, economic, social, and technological) framework, focuses entirely on external factors, namely political, economical, sociocultural, and technological.

“The SWOT analysis is an excellent framework not only for diagnosing issues in your business, but also for identifying strategic opportunities within it. For example, a SWOT analysis can be applied to the launch of a new product, a business partnership under consideration, or a key hire or promotion. While the SWOT is not meant to be an all-inclusive, fully exhaustive analysis, it does provide a solid basis for discussion, much like a resume or CV contributes to the hiring process,” explains Colleti of Colletti Labs.

Strength in a SWOT Analysis

The strengths section of a SWOT analysis highlights what you do well. These can include your sales and market presence, hiring and retention practices, and products and services, among others. It can also list what you are good at personally.

Some additional examples of strengths you might list in a SWOT analysis include:

• Customer Satisfaction: Satisfied customers are returning customers. Returning customers keep your business solvent. Having a large number of regular customers is a great strength.
• Effective Branding: The right branding makes a business memorable. A well-designed logo or a fun, topical ad campaign can bring in sales and create positive associations with your brand.
• Employee Satisfaction and Retention: Hiring quality talent and retaining them for the long term is a wonderful strength. Loyal employees are more likely to enjoy their work and work harder because of it.
• Expertise: Business leaders often have expertise in their field that translates to a better product or service. Possessing more expertise than your competitors is a noteworthy strength.
• Filling a Niche: Identifying and filling a niche in the market is an excellent strength. Many businesses thrive because they are able to tap into the needs of their market and provide it for their customers.
• Leadership: Great leadership is a great strength. Leaders who inspire and support their teammates foster a happier and more cohesive workplace.
• Longevity: The longer your business has been around, the longer you have had to cultivate a positive reputation in your community. Businesses often celebrate their anniversaries and promote the time they have spent operating in the community. Longevity helps assure customers that you have expertise in your niche.
• Meeting and Exceeding Goals: Setting and achieving realistic goals is a sign of a well-run business.
• Product and Service Offerings: Unique or popular product and service offerings help a business carve out a niche and find their customer base, making them an obvious strength.
• Sales: Consistently high sales are desirable for any business and, therefore, a major strength. Robust sales can also lead to many other strengths, as well.

Identifying strengths impartially can be challenging. Use this list of questions to help pinpoint your strengths:

• How has your company grown? 
• What do your customers like about you in reviews? 
• What do your employees like about working for you?
• What does your company do that is unique? 
• What offerings or company philosophies set you apart? 
• What looks different about your business from one, five, and ten years ago?

Weakness in a SWOT Analysis

Weaknesses in a SWOT analysis are business aspects that are underperforming. These could be low sales, unpopular services, limitations, negative reviews, or others. Consider your weaknesses carefully, as you can often turn them into opportunities.

Here’s a list of common weaknesses businesses might find in a SWOT analysis:

• Employee Satisfaction: Employees who are unhappy with their jobs are less engaged and less productive. Consider your employees’ satisfaction, as retention can easily become a weakness of the business.
• Inefficient Budget and Resource Allocation: Many businesses have enough but do not allocate them efficiently. This weakness can be easily addressed by implementing better project prioritization practices.
• Negative Customer Reviews: Look at what your customers are saying in their reviews. Note the comments that show up frequently, and remember that customers will only typically leave very positive or very negative reviews. Use negative reviews as a tool to identify the areas where your business can improve.
• Not Reading Trends: Your products and services can quickly become obsolete if you are not in the habit of reading and forecasting trends. 
• Poor Branding: Consider branding carefully. It should be consistent, representative of your company, and recognizable across all mediums.
• Poor Leadership: Solid leadership is critical to the success of a business. As such, leadership that doesn’t perform well should be addressed immediately.
• Product or Service Offerings: Product or service offerings can be a weakness if they are not unique to your business or better than similar offerings from your competitors.
• Resource Limitations: Resources might include money, people, or materials. If you do not have the resources needed to meet demand, shore up this weakness.
• Rigidity: Being unable or unwilling to change with the times is a weakness found in many organizations. Change can be scary, but it is often required to move forward and stay relevant.
• Unrealistic Sales Projections: When sales are lower than projected, it can throw off budgets and plans for the business’s future, leading to missed opportunities and overinvestment in failing product lines.

Business owners often struggle to identify their weaknesses impartially. To help identify weaknesses, ask yourself the following questions, and be honest with your answers:

• What do your customers think you can improve on? 
• What part of your business do customers commonly identify as troublesome?
• What are your biggest challenges? 
• Where have you fallen short in your goals over time? Were those goals realistic?
• What are your competitors doing better than you? 
• What are your competitors doing that you wish you were doing better?
• When was the last time you performed a competitive analysis ? 
• What do your employees think of their leaders and your business?

Opportunities in a SWOT Analysis

In a SWOT analysis, opportunities refer to situations that offer a chance to improve or expand. These can be factors such as a gap in the market, new products or services, or positive media coverage.

Some examples of opportunities to note in your SWOT analysis are:

• New Products and Services: When you add new products or services to your offerings, you have an opportunity to expand your product line and grow your business.
• Social Media Engagement: Social media provides an organic way to interact with existing and potential customers in a casual setting.
• Viral Advertising: Many businesses find success after creating popular media on the internet. Viral advertising has the potential to expose your company to potential customers who might otherwise not find you.
• Competition Gaps: Pay attention to your competition. When they switch gears or leave the market, you might be able to fill the gap they leave behind.
• Surplus Budget Reallocation: Sometimes a business finds it has a budget surplus. Extra money is an opportunity to shore up weak spots or take advantage of new opportunities.
• Partnerships: Partnering with other businesses or causes can bring you the exposure you could not have found alone. Fundraising and profit sharing offer beneficial ways to build some community support and help a good cause.
• Social and Cultural Opportunities: In addition to partnering with other businesses, research events and causes within your community that could help grow your business. Participating in social and cultural events can help boost your community standing.
• Hiring Consultants: You cannot be an expert in everything, so consider hiring an experienced authority to handle the tricky stuff or to teach you how to handle it.
• Training and Education: Continuing training and education of your staff (and yourself) can lead to countless future opportunities.
• Expansion: One of the most common, and most desirable, opportunities for a business is the chance to open new locations or expand into new markets.

To identify opportunities present in your business, ask the following questions: 

• Which social media platforms have shown the most growth in followers and engagement?
• Are there areas of local or cultural impact we can highlight in our messaging?
• Is there any kind of gap in the market we can capitalize on?
• Is there a budget surplus in a department that can be allocated elsewhere?
• Are there other companies or organizations we can partner with for shared impact?
• What are our long- and short-term goals for the business? 
• How can we best achieve our goals with our current resources?

Threat in a SWOT Analysis

Threats in a SWOT analysis refer to events or circumstances that pose a risk to your business’s growth or commercial success. These can include competitors, new regulations, negative media or social media coverage, and customer and employee satisfaction.

Opportunities and threats are sometimes considered two sides of the same coin, as many opportunities invite risk if you do not meet them with a solid plan. Opportunities are chances to capitalize on a possibility, but they can often be safely ignored. On the other hand, if you ignore threats for long enough, they often lead to disastrous consequences. Threats vary by industry and location. 

We’ve collected some examples of common threats that could appear in a SWOT analysis:

• Competition: Your competition is always a threat. Other businesses occupying the same market space can dilute sales or push you out altogether. Monitor your competition’s offerings so that you can adjust as needed and stay relevant.
• Customer Satisfaction: Many factors can affect customer satisfaction, but as your clients become less satisfied, they are less likely to patronize your business. Keep an eye on reviews, social media, and customer surveys for insights into your customers’ experiences.
• Employee Satisfaction: Without experienced and motivated staff, it is impossible to operate efficiently. Keep employees satisfied by providing competitive wages, opportunities for growth, and positive reinforcement of their achievements.
• Environmental: Prepare a plan for major weather or environmental events, even if you don’t operate your business where they are common. If possible, carry insurance for fires, floods, and earthquakes so that your work is interrupted as little as possible if one occurs.
• Equipment and Building Maintenance: Delaying expensive repairs and maintenance on your buildings or equipment that are not immediately critical can be tempting. However, putting them off too long can lead to even more expensive repairs and possible closures at a later date when things break down or fail.
• Media Coverage: The adage “no such thing as bad press” is not always true. Negative media coverage can cost you customers and sales. Positive media coverage can run the risk of bringing on more customers than you have the capacity to handle, which can lead to frustration and a loss of customers in kind.
• Regulations: New regulations that interfere with or inhibit your business get passed all the time. Keep abreast of any pending changes, and be sure that you have contingency plans in place.
• Setting Financial Goals: Your business forecasts should be realistic and based on similar market numbers or real numbers you have achieved in the past. You cannot set achievable plans for your business's future if you are not making accurate projections in the present.
• Social Media Coverage: Like regular media coverage, social media can make or break your business. Many companies find success and followings on social media organically. However, some fail to appeal to the average user and can even find themselves publicly ridiculed in this forum instead.
• Supply Chain Delays: Supply chain delays can affect lead times, manufacturing schedules, and the availability of materials. They can be difficult to predict, so consider building in extra time or creating contingency plans.

Identifying threats can feel overwhelming and pessimistic, but they are vital for business planning. Ask yourself the following questions to shine light on potential threats in your SWOT analysis:

• Are there any new major competitors in the market? 
• What are people saying about us in reviews and on social media?
• Where are we underperforming? 
• Where are we missing our goals?
• Will any incoming new legislation directly or indirectly affect our business? What kind of potential legislative changes should we keep an eye on?
• Are we keeping up to date on building and equipment maintenance?
• Are our employees satisfied with their jobs?
• Are we maintaining accurate financial records and creating accurate projections?

Internal and External Factors in a SWOT Analysis

In a SWOT analysis, strengths and weaknesses are considered internal factors, and opportunities and threats are considered external factors. Internal factors are usually a result of decisions the company has made. External factors often come from a wider environment.

Internal factors tend to be easier to address since they come from decisions made within the company. External factors depend greatly on factors outside of a business and can be harder to identify and track. As a result, most organizations find it easier to bolster strengths and shore up weaknesses than to take advantage of opportunities and avoid threats.

Tips for Writing a SWOT Analysis

To write a SWOT analysis for your business, take an objective look at your strengths, weaknesses, opportunities, and threats. Keep it organized and concise, and create a specific and actionable list. 

We’ve outlined these and other tips:

• Be Concise: Stick to the most profound or critical five or six elements in each quadrant to keep the analysis relevant and actionable.
• Be Honest and Impartial: It’s vital to be honest and impartial about the state of your business. This truth can sometimes be difficult for managers and owners who are too close to it, so consider involving additional stakeholders or employing outside help.
• Be Specific: Use real numbers when talking about sales, goals, and times. Point to specific initiatives that were successful (or not) instead of referring to them broadly. “My early SWOT analyses were too general, and I didn’t have the rigor that’s required to provide a detailed and balanced view of a business or opportunity. If I could go back in time, I would consider more elements of the business, including people, product, marketing, sales, customer service, data management, quality, partners, etc. I would also provide metrics and KPIs for each area discussed to provide a proper data-driven basis for discussion or debate,” Colletti contemplates.
• Do It Regularly: Create a quarterly or annual schedule to perform SWOT analyses regularly. “I wish I had known that a SWOT analysis should be performed at regular intervals,” says Wesman. “Changes in technology, consumer sentiment, and macroeconomic factors can drastically alter a business's prior prospects, which can blindside decision-makers during their most critical moments.”
• Follow Up: Once you analyze your results, make an action plan to take advantage of your strengths and opportunities, as well as to address any shortcomings you have found. Use it to help plan your business strategy going forward. “A SWOT analysis is a great way to keep your finger on the pulse of your business’s overall performance,” says Rossi.
• Use Real Data: Use real data from reviews, surveys, and sales to create the analysis. Your SWOT analysis will be more actionable if you include the real numbers associated with each factor.

Mistakes to Avoid when Doing a SWOT Analysis

When performing a SWOT analysis, avoid being vague or too verbose. Be sure to follow up on the findings and create an action plan. 

We’ve outlined these and other potential mistakes to avoid in your SWOT analysis: 

• Being Too Wordy: Your lists should be easy to read and understand without a lot of extra information. Use real numbers and statistics when applicable, and stick to the top five or six items with the most impact in each quadrant.
• Being Too Vague: At the same time, your lists should include all the necessary details to give the reader the full picture.
• Not Being Honest and Objective: It is easy to inflate your strengths and downplay your weaknesses, but that will only hurt your business in the long term. “One common mistake is to downplay the risks and threats in the analysis. As entrepreneurs, we sometimes tend to be overly optimistic or overconfident. We may want to embellish the strengths and opportunities, such as stating ‘our killer technology’ or ‘our amazing sales team.’ Another mistake is to make claims or statements with no real data or analytical support. A proper SWOT requires you to be pragmatic about your strengths, and think really hard about what risks and threats face your business,” explains Colletti.
• Not Creating an Action Plan: One of the biggest mistakes you can make with a SWOT analysis is not using its results to inform your next steps. A SWOT analysis is only useful if you learn from it and let it help you inform your strategy.
• Not Involving a Group: A SWOT analysis performed by a single person will only have a single point of view. For best results, take a more inclusive look at your business from people at all levels.

Benefits of a SWOT Analysis

A SWOT analysis can provide insight into your business’s overall performance, highlight places to improve, and even act as a team-building exercise. 

We’ve outlined these and more benefits of performing a SWOT analysis:

• Develop Action Plans: A SWOT analysis is a great tool for developing an action plan. Use the results to focus on the areas that need work or extra resources and to keep developing the areas that are doing well.
• Do Some Introspection: A SWOT analysis provides a forum to do some real introspection on your business and its practices. “Since many entrepreneurs and business owners can be overly optimistic, a SWOT analysis can help force pragmatism. Leaders need to consider the business from all angles with a heightened sense of rigor,” warns Colletti.
• Get an Objective Overview of the Business: A SWOT analysis can give you an overview of your company’s current performance and its future potential. “You can use these insights to weigh the pros and cons of difficult business decisions. This will help you navigate challenging market environments to your advantage,” says Wesman.
• Help Draft Other Business Documents: A SWOT analysis can serve as the first draft for other business documents, such as project overviews, media releases, and investment reports. “SWOT is a widely known framework, thus providing a common language for communicating the viability of a business or opportunity to leadership, investors, business partners, or board members,” explains Colletti.
• Team Building: When you include a diverse group of employees in business strategy discussions, you increase their buy-in and engagement. They feel more connected to the problem and see themselves as part of the solution. “SWOT is an excellent tool for a strategy session or team-building event , allowing leaders to solicit input and feedback on various aspects of the business,”  Colletti explains.

Turn Your Brainstorm into a Plan of Action with the Smartsheet for Miro Integration 

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

How to Write a SWOT Analysis (Template and Examples Included)

#scribendiinc

Written by  Scribendi

Planning for the Future

Where do you see yourself in five years? How about your career? Your business? 

These questions keep a staggering amount of people awake at night. All too often, the future can seem like a dark, ominous cloud that looms just out of view. As the old proverb goes, we fear the unknown—and little can possibly be more unknowable than the future.

While there is no crystal ball that can accurately predict future market trends or the steps you should take to optimize your productivity and sharpen your competitive edge, we can offer some advice: Reframe the question. Rather than trying to pinpoint where you think you might be in five years, think about where you want to be at that point in time. Once you have a destination in mind, you can start planning a route to get there. After all, maps are great tools, but they can't help you if you don't know where you're going.

So, what's the metaphorical map in this scenario? We present to you the SWOT (strengths, weaknesses, opportunities, and threats) analysis.

How to Write a SWOT Analysis

SWOT analyses are great strategic tools that are useful in project planning, business development , financial strategizing, and personal advancement . Simple, honest, and to-the-point, they facilitate a profound understanding of your or your business's current standing. Essentially, a SWOT analysis is a comparative list of all your strengths, weaknesses, opportunities, and threats.

There's more power in this process than you might think. You may be only hazily aware of your own strengths and weaknesses. However, thoughtfully recording and reflecting on them creates a thorough, conscious familiarity with both the resources available to you and the obstacles standing in your way. This awareness allows you to map out a path toward your goals with great precision and purpose. Writing a SWOT analysis will help you clearly evaluate whether your goals are feasible according to your resources and needs.

In this guide, we'll break down exactly how to write a SWOT analysis and provide a few examples along the way. Feel free to use our SWOT analysis template, given below, to write your own!

Our SWOT Analysis Template

Your list of strengths should focus on your current resources and abilities. It should relate to things that you do or that your company does well. These might be your or your company's accomplishments—both great and small—and the assets that you or your company have. Your strengths give you your greatest edge; they are the resources that propel you forward and that you can continue to develop as you progress.

When you draw up your first SWOT analysis, you may find yourself at a loss. Don't worry—it's difficult for most people to come up with an objective list of strengths and weaknesses on the spot. For your convenience, we've included a list of questions you can ask yourself to get started.

These questions should help you identify a few of your strengths. Remember, while our example questions mostly relate to business strengths, they can also apply to personal strengths. Go ahead and boast as much as you can.

• What sets your company apart from others?
• What do you have that other companies don't?
• What are you most proud of about your company?
• What makes clients come back to you?
• What does your company do well?
• What assets do you have access to?
• What qualities does your company have that other companies try to emulate?
• What has always been easy for your company? 

Listing your weaknesses might be a little more uncomfortable than detailing your strengths, but trust us—doing so will help you in the long run. Understanding the obstacles in your path and the elements of your business or skills you may need to improve is just as important as appreciating your strengths. Once you're aware of your weaknesses, you can start working on them and building your next steps around them.

Your list of weaknesses should pertain to any current problems and challenges. Check out the list of questions below—it should give you an idea of where to start. Again, if you'd rather focus on your personal or career growth, feel free to alter these questions to suit your needs.

• What makes your company blend in with its competition?
• What do other companies have that you don't?
• What are the most common criticisms that you receive from clients?
• Why have certain clients not returned to you?
• What does your company need to improve upon?
• What kind of feedback do you receive from your employees?
• What might your competition consider to be a weakness?
• What has always been difficult for your company?
• What are you unwilling to do or change?

Opportunities

Think about the opportunities available to you as potential future strengths. Your opportunities are the assets, resources, and events that could be beneficial to you in some way in the future. You may need to change some of your current approaches or adapt in other ways to capitalize on these opportunities, and that is not necessarily a bad thing.

Here are some questions you can ask yourself to identify your potential opportunities:

• What is happening in the current market that you could capitalize upon?
• What changes have you been making that have returned positive results?
• What is working for other companies?
• How could you introduce new technology to make your processes more efficient?
• What costs can you cut?
• Could you access new sectors or demographic groups?
• How can you improve or modernize your marketing techniques?
• How can you remove existing obstacles?

  Threats

Just as your opportunities are based on potential, so are your threats; these are the possible obstacles or issues that are not yet directly affecting your progress. But this doesn't mean that you shouldn't start thinking about them! Being aware of the challenges that you may encounter will help you either plan around them or confront them with solutions. Try to come up with several future events that may realistically hinder the momentum you build from engaging with your strengths and opportunities.

To get started, take a peek at our list of questions:

• What obstacles might your weaknesses create?
• Do changing market trends negatively affect your competitive edge?
• What might stand in the way of the changes you make to accommodate your strengths and opportunities?
• Do you have a lot of debt?
• Could your competition exploit your weaknesses?

How did you do? Do you feel like you've listed everything? Or do you think you're missing something? Below, we've drafted examples of a business and a personal SWOT analysis to provide you with some perspective on what a completed one might look like.

An Example of a Personal SWOT Analysis

An Example of a Business SWOT Analysis  

Final Words

The humble but effective SWOT analysis will produce a detailed map of your current environment—its hills and valleys alike. Knowing how to write a SWOT analysis will provide you with the vantage point you need to choose a direction and blaze a trail toward your goals. SWOT analyses may not be crystal balls, but they are something like compasses. Use them wisely, and you will never be lost.

Image source: cookelma/unspla sh.com

Make a Strong Start. Connect with a Professional Editor.

Hire one of our expert editors , or get a free sample, about the author.

Scribendi's in-house editors work with writers from all over the globe to perfect their writing. They know that no piece of writing is complete without a professional edit, and they love to see a good piece of writing turn into a great one after the editing process. Scribendi's in-house editors are unrivaled in both experience and education, having collectively edited millions of words and obtained nearly 20 degrees collectively. They love consuming caffeinated beverages, reading books of various genres, and relaxing in quiet, dimly lit spaces.

Have You Read?

"The Complete Beginner's Guide to Academic Writing"

Related Posts

How to Write a Business Plan

How to Write a Letter of Recommendation

Traditional Publishing versus Self-Publishing: What's the Difference?

Upload your file(s) so we can calculate your word count, or enter your word count manually.

We will also recommend a service based on the file(s) you upload.

English is not my first language. I need English editing and proofreading so that I sound like a native speaker.

I need to have my journal article, dissertation, or term paper edited and proofread, or I need help with an admissions essay or proposal.

I have a novel, manuscript, play, or ebook. I need editing, copy editing, proofreading, a critique of my work, or a query package.

I need editing and proofreading for my white papers, reports, manuals, press releases, marketing materials, and other business documents.

I need to have my essay, project, assignment, or term paper edited and proofread.

I want to sound professional and to get hired. I have a resume, letter, email, or personal document that I need to have edited and proofread.

 Prices include your personal % discount.

 Prices include % sales tax ( ).

• Certifications
• Associate Business Strategy Professional
• Senior Business Strategy Professional
• Examination
• Partnership
• For Academic Affiliation
• For Training Companies
• For Corporates
• Help Center
• Associate Business Strategy Professional (ABSP™)
• Senior Business Strategy Professional (SBSP™)
• Certification Process
• TSI Certification Examination
• Get your Institution TSI Affiliated
• Become a Corporate Education Partner
• Become a Strategy Educator

Frequently Asked Questions

Swot analysis: how to strengthen your business plan.

Introduction

Every business, big or small needs a solid plan to succeed. A well-constructed business plan takes into account the strengths and weaknesses of a company and the opportunities and threats present in the marketplace. One of the most useful tools for assessing these factors is the SWOT analysis as it provides a comprehensive overview of a company's current situation and potential for growth. In this article, we will discuss what a SWOT analysis is, why it is important for businesses, who should conduct it, and how to conduct it effectively.

What is a SWOT analysis?

Have you ever wondered how businesses manage to evaluate all the internal and external factors that could affect their success? Welcome to the SWOT analysis. It's a strategic planning tool that helps businesses identify their Strengths, Weaknesses, Opportunities, and Threats.

Strengths refer to internal factors that give a company an edge over its competitors. Think of a strong brand, loyal customer base, experienced employees, or efficient operations. Weaknesses, on the other hand, are internal factors that put a company at a disadvantage. These could be a weak brand, lack of funding, inexperienced employees, or outdated technology .

But what about external factors that could impact a business's success? That's where Opportunities and Threats come in. Opportunities are external factors that could help a company grow and succeed. This could include a growing market, new trends, technological advancements, or changes in regulations. Threats, on the other hand, are external factors that could harm a company's growth and success. Examples of threats could be economic downturns, increased competition, changes in consumer behavior, or natural disasters.

By conducting a SWOT analysis, businesses can make informed decisions about their strategic initiatives. By focusing their resources on areas with the greatest potential for growth and competitive advantage, businesses can increase their profitability, market share, and long-term success. So, whether you're a business strategist, executive, manager, or consultant, SWOT analysis can provide a fresh perspective on your company's current situation and potential for growth .

Why is a SWOT analysis important for businesses?

A SWOT analysis is essential for developing a business plan that maximizes a company's strengths, minimizes its weaknesses, and takes advantage of opportunities while mitigating threats.

Here are some of the reasons why a SWOT analysis is important for businesses:

• Identifies key areas for improvement By conducting the SWOT analysis, businesses can gain a better understanding of their internal weaknesses and external threats, which enables them to prioritize areas for improvement. They can then focus their resources and efforts on those areas, which can help them become more competitive and improve their overall performance.
• Maximizes the strength of businesses In addition to identifying areas for improvement, SWOT analysis also helps businesses identify their strengths. By leveraging these strengths, businesses can differentiate themselves from their competitors and take advantage of their competitive advantages. This can lead to increased market share, improved profitability, and overall success.
• Mitigates threats SWOT analysis can help businesses identify potential threats to their operations and take proactive measures to mitigate them. This could include diversifying their product or service offerings, investing in risk management strategies, or developing contingency plans to minimize the impact of unforeseen events.
• Takes advantage of potential opportunities In addition to mitigating threats, SWOT analysis can also help businesses identify potential opportunities for growth and success. By capitalizing on these opportunities, businesses can increase their market share, expand their customer base, and improve their overall performance.
• Provides a comprehensive overview Finally, SWOT analysis provides a comprehensive overview of a company's internal and external factors. This can help businesses develop a well-informed business plan that takes into account their current situation and potential for growth. By developing a strategic plan based on the SWOT analysis, businesses can increase their chances of success and achieve their long-term goals.

How to conduct a SWOT analysis?

Now that we know what a SWOT analysis is and why it is important for businesses, let's discuss how to conduct a SWOT analysis effectively. Here are the steps involved:

• Define the objective: The first step in conducting a SWOT analysis is to define the objective. What is the purpose of the analysis? What are the specific goals that the analysis aims to achieve? Defining the objective will help focus the analysis and ensure that it is relevant to the specific needs of the business.
• Gather information: Once you have defined the objective, the next step is to gather information about the business, its industry, and its competitors. This can include things like financial reports, customer feedback, market research, and competitor analysis.
• Identify strengths: What are the things that the business does well? What advantages does it have over its competitors? This can include things like a strong brand, loyal customer base, experienced employees, and efficient operations.
• Identify weaknesses: The next step is to identify the weaknesses of the business. What are the areas that need improvement? What disadvantages does it have compared to its competitors? This can include things like a weak brand, lack of funding, inexperienced employees, and outdated technology.
• Identify opportunities: To identify the opportunities available to the business , you need to address questions such as, What are the trends in the industry? What changes in regulations could benefit the business? What new technologies are emerging? This can include things like a growing market, new trends, technological advancements, and changes in regulations.
• Identify threats: The final step is to identify the threats to the business. What are the economic, social, and environmental factors that could impact the business negatively? What are the risks associated with the current situation and potential growth opportunities? This can include things like economic downturns, increased competition, changes in consumer behavior, and natural disasters.

Once the SWOT analysis is complete, the next step is to use the information to develop a strategic plan that maximizes the strengths of the business, minimizes its weaknesses, takes advantage of opportunities, and mitigates threats.

Who should conduct a SWOT analysis and what are the benefits?

A SWOT analysis can be conducted by anyone involved in the strategic planning process of a business. This can include business strategists , executives, managers, and consultants. Here are some of the benefits of conducting a SWOT analysis:

• Provides a fresh perspective on a company's strengths, weaknesses, opportunities, and threats, allowing for a more objective view of the situation.
• Facilitates strategic decision-making that enables businesses to make informed strategic decisions based on their current situation and potential for growth.
• Helps prioritize action items based on their importance and potential impact to the business.
• Encourages collaboration among team members, allowing for a more comprehensive analysis of the situation.
• Enables risk assessment associated with their current situation and potential growth opportunities.
• Improves communication among team members, ensuring that everyone is on the same page regarding the current situation and potential for growth.

This information helps businesses to prioritize their key strategic initiatives, focus their resources on areas with the greatest potential for growth and competitive advantage, and develop a strategic plan that aligns with their goals and objectives. Ultimately, a SWOT analysis helps businesses to make more effective strategic decisions that can lead to increased profitability, market share, and long-term success.

Example of a SWOT analysis

To help illustrate the SWOT analysis process, let's take a look at an example of a SWOT analysis for a company in the fashion industry:

• Strong brand recognition
• Innovative designs
• Loyal customer base
• Experienced and skilled designers and staff
• Efficient production processes
• Limited distribution channels
• Dependence on a few key suppliers
• High production costs
• Lack of international presence
• Limited online presence

Opportunities

• Growing demand for sustainable fashion
• Emerging markets in Asia and South America
• Expansion into e-commerce
• Partnership with influencers and celebrities
• Diversification of product offerings
• Economic downturns and recessions
• Increased competition from established and emerging brands
• Shifting consumer preferences and trends
• Changes in regulations and trade policies
• Disruptive technologies and innovations

Using this SWOT analysis, the company could focus on expanding its distribution channels and international presence, reducing production costs, and investing in sustainable and diverse product offerings.

Q: Is a SWOT analysis only for large businesses? A: No, a SWOT analysis is beneficial for businesses of all sizes, including small businesses.

Q: Can a SWOT analysis be conducted for a specific project or product? A: Yes, a SWOT analysis can be conducted for a specific project or product to evaluate its strengths, weaknesses, opportunities, and threats.

Q: How often should a SWOT analysis be conducted? A: It is recommended to conduct a SWOT analysis at least once a year or whenever there are significant changes in the industry, competition, or business environment.

Q: What should I do with the information gathered from a SWOT analysis? A: The information gathered from a SWOT analysis should be used to develop a strategic plan that maximizes strengths, minimizes weaknesses, takes advantage of opportunities, and mitigates threats.

In conclusion, a SWOT analysis is an important tool that can help businesses of all sizes and industries to identify their strengths, weaknesses, opportunities, and threats. By conducting a SWOT analysis, businesses can gain a better understanding of their current situation and potential growth opportunities, enabling them to make informed business decisions and develop effective business strategies. As a strategic leader or business strategist, it is important to conduct a SWOT analysis regularly to stay up-to-date with changes in the industry and competition, and ensure that your business plan is relevant and effective in achieving your business goals.

Recent Posts

How Data Analytics Can Revolutionize Your Business - A Strategist's Guide

Download this Strategist's Guide to empower yourself with resourceful insights:

• Roadblocks to Data Usage
• Advantages that Data Analytics offer for businesses
• Elements of a Data Analytics Strategy
• Top reasons why businesses must adopt a Data Analytics Strategy
• Case studies, Scenarios, and more

CredBadge™ is a proprietary, secure, digital badging platform that provides for seamless authentication and verification of credentials across digital media worldwide.

CredBadge™ powered credentials ensure that professionals can showcase and verify their qualifications and credentials across all digital platforms, and at any time, across the planet.

Verify A Credential

Please enter the License Number/Unique Credential Code of the certificant. Results will be displayed if the person holds an active credential from TSI.

Stay Informed!

Keep yourself informed on the latest updates and information about business strategy by subscribing to our newsletter.

Start Your Journey with The Strategy Institute by Creating Your myTSI Account Today.

• Manage your professional profile conveniently.
• Manage your credentials anytime.
• Share your experiences and ideas with The Strategy Institute.

Account Login

• Remember Password
• Forgot Password?

Forgot Password

Our Recommendations

• Best Small Business Loans for 2024
• Businessloans.com Review
• Biz2Credit Review
• SBG Funding Review
• Rapid Finance Review
• 26 Great Business Ideas for Entrepreneurs
• Startup Costs: How Much Cash Will You Need?
• How to Get a Bank Loan for Your Small Business
• Articles of Incorporation: What New Business Owners Should Know
• How to Choose the Best Legal Structure for Your Business

Small Business Resources

• Business Ideas
• Business Plans
• Startup Basics
• Startup Funding
• Franchising
• Success Stories
• Entrepreneurs
• The Best Credit Card Processors of 2024
• Clover Credit Card Processing Review
• Merchant One Review
• Stax Review
• How to Conduct a Market Analysis for Your Business
• Local Marketing Strategies for Success
• Tips for Hiring a Marketing Company
• Benefits of CRM Systems
• 10 Employee Recruitment Strategies for Success
• Sales & Marketing
• Social Media
• Best Business Phone Systems of 2024
• The Best PEOs of 2024
• RingCentral Review
• Nextiva Review
• Ooma Review
• Guide to Developing a Training Program for New Employees
• How Does 401(k) Matching Work for Employers?
• Why You Need to Create a Fantastic Workplace Culture
• 16 Cool Job Perks That Keep Employees Happy
• 7 Project Management Styles
• Women in Business
• Personal Growth
• Best Accounting Software and Invoice Generators of 2024
• Best Payroll Services for 2024
• Best POS Systems for 2024
• Best CRM Software of 2024
• Best Call Centers and Answering Services for Busineses for 2024
• Salesforce vs. HubSpot: Which CRM Is Right for Your Business?
• Rippling vs Gusto: An In-Depth Comparison
• RingCentral vs. Ooma Comparison
• Choosing a Business Phone System: A Buyer’s Guide
• Equipment Leasing: A Guide for Business Owners
• HR Solutions
• Financial Solutions
• Marketing Solutions
• Security Solutions
• Retail Solutions
• SMB Solutions

Business News Daily provides resources, advice and product reviews to drive business growth. Our mission is to equip business owners with the knowledge and confidence to make informed decisions. As part of that, we recommend products and services for their success.

We collaborate with business-to-business vendors, connecting them with potential buyers. In some cases, we earn commissions when sales are made through our referrals. These financial relationships support our content but do not dictate our recommendations. Our editorial team independently evaluates products based on thousands of hours of research. We are committed to providing trustworthy advice for businesses. Learn more about our full process and see who our partners are here .

What is a SWOT Analysis? (And When To Use It)

Use a SWOT (strengths, weaknesses, opportunities, threats) analysis to grow your business.

Table of Contents

A SWOT analysis is a planning process that helps your company overcome challenges and determine which new leads to pursue. “SWOT” stands for strengths, weaknesses, opportunities and threats. You should perform a SWOT analysis before you commit to any sort of company action, whether you are exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a plan midway through its execution.

While there are numerous ways to assess your company, one of the most effective is to conduct a SWOT analysis. Learn all about this approach below.

What is the objective of a SWOT analysis?

The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision . Albert Humphrey of the Stanford Research Institute created this method in the 1960s during a study conducted to identify why corporate planning consistently failed. Since its creation, the SWOT analysis has become one of the most useful tools for business owners to start and grow their companies.

“It is impossible to accurately map out a small business’s future without first evaluating it from all angles, which includes an exhaustive look at all internal and external resources and threats,” Bonnie Taylor, chief marketing officer at CCS Innovations, told Business News Daily. “A SWOT accomplishes this in four straightforward steps that even rookie business owners can understand and embrace.”

When to perform a SWOT analysis

Employ a SWOT analysis before you commit to any company action, whether that’s exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a plan midway through its execution. Sometimes it’s wise to perform a general SWOT analysis to check on the current landscape of your business and improve operations as needed. The analysis can show you key areas where your organization is performing optimally and areas where operations need adjustment.

Don’t make the mistake of thinking about your business operations informally, in hopes that they will all come together on their own. If you take the time to put together a formal SWOT analysis, you’ll be able to see the whole picture of your business. From there, you can discover ways to improve or eliminate your company’s weaknesses and capitalize on its strengths.

While the business owner should certainly be involved in creating a SWOT analysis, it is often helpful to include other team members in the process. Ask for input from a variety of team members and openly discuss any contributions made. The collective knowledge of the team will allow you to adequately analyze your business from all sides. 

You can also conduct a personal SWOT analysis in your own life, whether for professional or other purposes. 

What does a SWOT analysis include?

A SWOT analysis focuses on the four elements of the acronym, allowing companies to identify the forces influencing a strategy, action or initiative. Knowing these positive and negative elements can help companies more effectively communicate what parts of a plan need to be recognized.

When drafting a SWOT analysis, individuals typically create a table split into four columns to list each impacting element side by side for comparison. Strengths and weaknesses won’t typically match listed opportunities and threats verbatim, although they should correlate, since they are tied together.

Billy Bauer, owner of ROYCE New York, noted that pairing external threats with internal weaknesses can highlight the most serious issues a company faces.

“Once you’ve identified your risks, you can then decide whether it is most appropriate to eliminate the internal weakness by assigning company resources to fix the problems, or to reduce the external threat by abandoning the threatened area of business and meeting it after strengthening your business,” said Bauer.

Internal factors

Strengths (S) and weaknesses (W) refer to internal factors, which are the resources and experience readily available to you.

These are some common internal factors:

• Financial resources (funding, sources of income and investment opportunities)
• Physical resources (location, facilities and equipment)
• Human resources (employees, volunteers and target audiences)
• Access to natural resources, trademarks , patents and copyrights
• Current processes (employee programs, department hierarchies and software systems) [See related articles: Best CRM software of 2024 and The Best Business Accounting Software Services of 2024 ]

External factors

External forces influence and affect every company, organization and individual. Whether these factors are connected directly or indirectly to opportunities (O) or threats (T), it is important to note and document each one.

External factors are typically things you or your company do not control, such as the following:

• Market trends (new products, technology advancements and shifts in audience needs)
• Economic trends (local, national and international financial trends)
• Funding (donations, legislature and other sources)
• Demographics
• Relationships with suppliers and partners
• Political, environmental and economic regulations

After you create your SWOT framework and fill out your SWOT analysis, you will need to come up with some recommendations and strategies based on the results. Linda Pophal, strategic marketing communication consultant and content marketer at Strategic Communications, said these strategies should focus on leveraging strengths and opportunities to overcome weaknesses and threats.

“This is actually the area of strategy development where organizations have an opportunity to be most creative and where innovative ideas can emerge, but only if the analysis has been appropriately prepared in the first place,” said Pophal.

SWOT examples

Bryan Weaver, an in-house advisor to Scholefield Construction Attorneys, was heavily involved in creating a SWOT analysis for his firm. He provided Business News Daily with a sample SWOT analysis template and example that was used in the firm’s decision to expand its practice to include dispute mediation services. His SWOT matrix included the following:

Resulting strategy: Take mediation courses to eliminate weaknesses and launch Scholefield Mediation, which uses name recognition with the law firm, and highlights that the firm’s construction and construction law experience makes it different.

“Our SWOT analysis forced us to methodically and objectively look at what we had to work with and what the marketplace was offering,” Weaver said. “We then crafted our business plan to emphasize the advantages of our strongest features while exploiting opportunities based on marketplace weaknesses.”

Additional business analysis strategies

The SWOT analysis is a simple but comprehensive strategy for identifying not only the weaknesses and threats of an action plan, but also the strengths and opportunities it makes possible. However, a SWOT analysis is just one tool in your business strategy. Additional analytic tools to consider include the PEST analysis (political, economic, social and technological), MOST analysis (mission, objective, strategies and tactics) and SCRS analysis (strategy, current state, requirements and solution).

Consistent business analysis and strategic planning is the best way to keep track of growth, strengths and weaknesses. Use a series of analysis strategies, like SWOT, in your decision-making process to examine and execute strategies in a more balanced, in-depth way.

Max Freedman and Nicole Fallon contributed to this article. Some source interviews were conducted for a previous version of this article.

Building Better Businesses

Insights on business strategy and culture, right to your inbox. Part of the business.com network.

• You are here:
• Home »
• Blog »
• Business Growth »

SWOT Analysis In Business (With Examples)

• Business Growth

Here is a simple strategic SWOT analysis that you can use as a highly effective method for creating an edge in the market and to insure long term success.

SWOT is an acronym for the Strengths and Weakness of a business and the Opportunities and Threats facing the business. It is used to understand Current and Future, Internal and External factors that may have an effect on a  business results and success.

The Strengths and weaknesses are focused inward to analyze what your company does well and where it could be better. Opportunities and Threats are focused externally towards the industry, which analyze any potential negative effect on the business.

How To Carry Out A SWOT Analysis In Business

To carry out a SWOT analysis for your business, summarize the strengths, weaknesses, opportunities and threats of your business relative to competitors. A SWOT analysis is a simple, yet highly effective method for conducting an analysis on a business, product or service. Before you try writing a business or marketing plan, it is highly recommended that you first complete a SWOT analysis.

A SWOT approach to planning requires owners to look very closely and analytically at every aspect of their operation, so that objectives can be evaluated as achievable, while also building up a clear picture of the strategies that need to be adopted under the constraints that have been recognized.

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” 

- Sun Tzu,  The Art Of War -

When completing a SWOT analysis, the aim is to reflect on all aspects of your business’s operations. You may wish to do this exercise alone or include your staff, spouse or business advisor. Whether you choose to do it alone or with others, make sure you allow a solid chunk of time to complete the analysis without being interrupted.

A SWOT analysis is a brainstorming exercise and to get the best results I suggest you allow yourself at least thirty minutes, or preferably an hour. This allows your mind to free itself of the multitude of thoughts and minor details of day to- day living. It takes time to get a flow of ideas going, so be patient and allow yourself time. Once you have allotted sufficient time to focus on this exercise it is time to get started.

SWOT Analysis Template: Excel Download

SWOT Analysis

Download SWOT Analysis Excel Template

This link will open as an Excel spreadsheet and is ready, and

easy to use but you can follow these video instructions for more information. 

SWOT Analysis Template Video

The SWOT Analysis Goal 

After you have successfully completed the SWOT analysis, take some time to explore ways to consolidate your strengths, minimize your weaknesses, take advantages of the opportunities and be prepared for the threats.

Your priorities should be to:

• Consolidate a strength
• Use a strength to address an opportunity or threat
• Use a strength to minimize a weakness or threat
• Convert a weakness to strength
• Convert a threat to an opportunity

SWOT Analysis Template: PDF Download

Download swot analysis pdf.

A SWOT analysis is a simple, yet highly effective method for conducting an analysis on a business, product or service. Before you try writing a business growth or marketing plan, it is highly recommended that you first complete a SWOT analysis.

S WOT Analysis - STRENGTH  

The first step is to reflect on what you do really well. What is working for you at the moment? Can you consolidate on any of these strengths and make them an even bigger advantage for your business? Try asking yourself the following questions

What are your business’s strengths?

• Attractive shopfront
• Operating hours
• Industry experience
• Follow-up service
• What do you do well?
• What unique resources can you draw on?
• What do others see as your strengths?
• How are you superior to your competitors?
• Why are your products or services so good?
• What is it that makes your business unique?

Potential Internal Strengths Can Be:

• Adequate financial resources.
• Well thought of by buyers.
• An acknowledged market leader.
• Well-conceived functional area strategies.
• Insulated from strong competitive pressure.
• Proprietary technology.
• Cost advantages.
• Better advertising campaigns.
• Product innovation skills.
• Proven management.
• Better manufacturing capability.
• Superior technological skills.

 “Appear weak when you are strong, and strong when you are weak.” 

- Sun Tzu, The Art Of War -

S W OT Analysis - WEAKNESS Examples

Weaknesses need to be understood so you can compensate or improve them. This is not the time to start beating yourself up for being less than perfect. Everyone has weaknesses. Your first task is to identify anything you think you need to improve. These could include:

• Time management
• Marketing strategy
• Certain products or services
• Cleaning up your work environment
• Follow-up procedures
• What could you improve?
• Where do you have fewer resources than others?
• What are others likely to see as weaknesses?

Potential Internal Weaknesses Can Be:

• No clear strategic direction.
• Obsolete facilities.
• Low profitability because …
• Lack of managerial depth and talent.
• Poor track record in implementing strategy.
• Internal operating problems.
• Too marrow a product line.
• Weak market image.
• Weak distribution network.
• Below-average marketing skills.
• Unable to finance needed changes.
• Higher overall costs relative to key competitors.

Make a comprehensive list and start reviewing which ones you could start transferring into strengths. If you find it difficult to be objective, ask someone you trust for his or her feedback on your perceived weaknesses.

“So in war, the way is to avoid what is strong, and strike at what is weak.”

SW O T Analysis - OPPORTUNITY 

The third stage of the analysis process is to look at the opportunities that your business has available. Where could you start gaining an advantage over your competitors? The more you know about what your competitors are doing, the easier it will be for you to see opportunities to create something different and compelling. Another great way to discover possible opportunities is to ask your current customers. They will often have all the answers if you are brave enough to ask the question.

• What external factors can you take advantage of?
• Are there current resources that are underutilized?
• How can you turn your strengths into opportunities?
• What trends could you take advantage of?
• What good opportunities are open to you?

Potential External Opportunities Can Be:

• Serve additional customer groups.
• Enter new markets or segments.
• Expand product line to meet broader range of customer needs.
• Diversify into related products.
• Falling trade barriers in attractive foreign markets.
• Complacency among rival firms.
• Faster market growth.

There are always opportunities. Take the time to brainstorm a comprehensive list and don’t sensor your ideas. There will be time to eliminate the most impractical ideas later. For now, just get the ideas down on paper.

“In the midst of chaos, there is also opportunity” 

SWO T  Analysis - THREAT  

Finally, you need to assess any current or future threats to your business. All potential threats should be brainstormed. It is better to be aware of problems that might arise than to be hit with them out of the blue. This list could include things like changes in legislation, a multinational competitor opening a store or a lack of products due to importing issues. Whatever the possible threats, list them and assess whether they are real or unlikely. Are there any threats to your current market share? When all areas have been plotted and identified, you will be in a much better position to plan your future.

Take the time to complete this exercise thoroughly as the benefits are very real.

• What threats do your weaknesses expose you to?
• What is your competition doing?
• What trends could harm you?

Potential External Threats Can Be:

• Entry of lower-cost foreign competitors.
• Rising sales of substitute products.
• Slower market growth.
• Adverse shifts in foreign exchange rates and trade policies of foreign governments.
• Costly regulatory requirements.
• Changing buyer needs.
• Adverse demographic changes.

SW OT Analysis Examples  

• Sample SWOT Ideas for a Local Restaurant
• Example SWOT for a Small, Local Coffee Chop Chain

“Who wishes to fight must first count the cost” 

About the Author Hans

Hans had 40 of his own businesses over the last 30 years and is famous for creating fast-growing businesses” He is an author, speaker, coach, and consultant and a specialist in business optimization and turnaround, helping smaller business owners eliminate business limitations, threats, and growth challenges in achieving their sales, profit, cash flow, and income goals with sniper precision.

Popular posts

57 sales frequency strategies for local small business, turnaround meaning in business, 230 business turnaround analysis questions, 12 unbreakable marketing laws to more sales.

• Search Search Please fill out this field.

What Is SWOT Analysis?

Understanding swot analysis, how to do a swot analysis.

• Common Mistakes

The Bottom Line

• Fundamental Analysis

How to Perform a SWOT Analysis

These frameworks are essential to fundamentally analyzing companies

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 ."

• Terms of Service
• Editorial Policy
• Privacy Policy

3 Great SWOT Analysis Examples with Real Companies

Whether you want to assess the current position of your business, expand to new markets, or simply develop a new strategy, a SWOT analysis is probably one of the first steps that you will probably make in that direction. And, if it wasn’t on your radar, it should be! Today, we will see some of the best SWOT analysis examples to get you inspired, and help you understand how to do use it effectively for optimum results.

If you are not familiar with the concept, a SWOT analysis is a key technique for assessing some of the most important aspects of your business. In fact, its name comes from the abbreviation of these aspects:

Strengths – internal

These are the strengths of your company compared to other industry competitors. For example, what is it that you do particularly well that others don’t? What is your unique selling proposition , or that service or aspect of your business that differentiates you from the rest?

Do you have a particular competitive advantage over your biggest competitors? This could be technology, an easy access to primary resources, more product personalization, and so on.

Assessing your strengths will help you identify your current position on the market. But also, give you insights on those aspects that represent a clear advantage for your business, so you can leverage them even more.

Weaknesses – internal

Weaknesses, as you might have guessed, are the exact opposite of your organization’s strength. In other words, what do your competitors do better than you ? In what aspect do they have a clear advantage over you?

Is it something that you offer but can improve, or is it a service or an aspect that you lack altogether? For example, your customer service might be unsatisfactory. Or maybe, a competitor has a particular technological feature that your product don’t offer at all.

We will see more of this with practical cases in our section of SWOT Analysis examples.

Opportunities – external

The next aspect of the SWOT analysis is evaluating the positive trends that can open a new opportunity for your business. They usually arise from the outside of your organization , such as industry changes, important movements on the competitors’ landscape, or even a change in the laws applicable to your industry.

Analyzing other factors, such as VUCA – the leadership theory on volatility, uncertainty, complexity and ambiguity, can also reveal new opportunities for your business. To identify them, you will have to look around you from an external perspective.

Can you spot any current trends that could represent an opportunity for your business? For example, the COVID-19 pandemic made companies like Nike and Adidas sell protective masks on their website as a part of their product portfolio. And many new businesses opened to profit from the changes.

Threats – external

Threats are another aspect that is external to your business, but can impact you negatively if you aren’t paying attention. Some examples include supply chain problems, shift in market requirements, changes to current laws and regulations, and so on.

Of course, threats are not always easy to identify. You will have to be proactively looking for them – if they are obvious, it is probably too late. What is the competition doing? How is the current technology evolving?

Are you noticing a change in user behavior regarding the consumption of your particular product? All these questions can help you get a better understanding of the market , and what could potentially be harmful to you.

And now, let’s get right to our SWOT analysis examples!

Disclaimer: These examples are merely my own analysis and interpretation of the information that is publicly available online for these companies. I don´t work at any of these companies, and I do not pretend that I actually know what is going on behind the scenes for any of them. It is just a practical exercise with real companies with the purpose of giving you a clear idea of how to perform a SWOT analysis.

1. The Coca Cola Company

First on our list of SWOT analysis examples is this one from The Coca Cola Company.

SWOT Analysis examples #1: The Coca Cola Company

Let’s discuss it in detail.

• Variety of products – one of the biggest strengths that The Coca Cola Company has is their incredible variety of products across different categories. In fact, there are over 500 brands across 200 companies owned by Coca Cola. This not only gives them a higher control on the market, but also more diversified expertise, and less overall competition.
• Market share – with a market share of 43% in the soft drink industry, they have a very solid positioning compared to many other competitors. Which also means that it would be extremely difficult to compete with Coca Cola and its almost unlimited resources.
• Brand recognition – Coca Cola is one of the most recognized brands in the world, which gives them a huge advantage in front of their competitors. It also means that any new product or brand they invest in will gain visibility almost immediately.
• Secret recipes – and last but not least, the company prides itself in having a secret recipe for its flagship product – the Coca Cola. This means that this product will be difficult to replicate by competitors.

• Health trends – one of the biggest weaknesses that the company has is its unability to adapt to current health trends. As people are becoming more and more conscious about the unhealthy food and the amount of sugar they are consuming, soft and sugary drinks are slowly getting substituted by healthier options.
• Sugar substitute – another health-related weakness for the company involves the difficulty of improving their quality of their product without affecting its famous taste. Coca Cola has been actively looking for healthy sugar substitutes for years with no success.
• Current positioning – the current positioning of Coca Cola and its soft drinks is both a blessing and a curse. A blessing, because everyone knows the brand and the product it offers. This kind of brand recognition is something that every company dreams of.

However, this weakness comes with the fact that Coca Cola already has a certain reputation established for itself that is difficult to change. And, considering its sugary drinks with mysterious and secret ingredients, it is certainly not the most positive one.

Opportunities

• Health trends – if The Coca Cola Company closely monitors and responds adequately to current health trends, they have a huge opportunitiy to increase their market share. And get an even bigger chunk of the soft drink industry. Especially if they manage to find a healthy substitute for sugar.
• Few major competitors – considering the dominance of the brand and only a few major competitors for these particular types of products, Coca Cola can quickly introduce new products with the right Marketing strategy.
• Healthier alternatives – although the company is quite dominant when it comes to soft drinks, a lot of other healthier alternatives are arising on the market. Flavoured waters, smoothies, organic drinks, green juices, and so on, are just some of the alternatives that people are starting to prefer as they get more conscious with their health.
• Negative press and media coverage – although The Coca Cola Company is known for its brilliant Marketing strategies and its incredible brand recognition, it also gets a lot of negative coverage for being unhealthy. In-depth research, Youtube videos, and even articles from reputable sources such as The Telegraph might cause serious harm in the long run.

Now that we have seen the first one, let´s move on to the next on our list of SWOT Analysis examples!

Next on our collection of SWOT analysis examples is Airbus, the world’s largest airliner manufacturer, and the one who took the most orders in 2019. So, let’s see what are the strengths, weaknesses, opportunities and threats for Airbus:

SWOT Analysis examples #2: Airbus

• Market share – with an estimated market share of almost 63% , Airbus is the largest aircraft manufacturer in the world, which gives the company a very strong and powerful position in the industry.
• Global network & international presence – with business operations located in Europe, the Americas, Africa & The Middle East, and Asia, Airbus has an incredible international network and presence.
• Innovation & technology – additionally, Airbus is putting a huge focus on investing in technology, innovation, and next generation manufacturing, more than any other competitor in the industry.
• Eco-efficiency – and last but not least, another strength that Airbus counts with is eco-efficiency. The company has been recognized is a leader in proposing and developing solutions for sustainable aviation.
• Delay in delivery – in 2019, Airbus took more orders for aircraft delivery than any other competitor, including its biggest rival Boeing. However, this caused a delay in the delivery of the orders, causing the company to accumulate a lot of backlogs.
• Operational inefficiencies – compared to rivals such as Boeing, Airbus has gained a reputation of being somewhat inconsistent when it comes to executing operations. The company is often delaying launches of its new models – for example, the launch of Airbus A380 was delayed by more than one year. This weaknesses is definitely something that Airbus could work on.
• High production costs – another key weakness of the company is the fact that it has higher production costs than its main rival Boeing, which leaves them with lower profit margins.

• Boom in Travelling – as the travelling industry is booming due to the growing percentage of the middle class, and the lower costs for airplane tickets compared to a decade ago, aircraft manufacturers are receiving more orders than ever. In fact, even in the next few years, the air traffic is anticipated to grow by 4.3% annually. According to Airbus , this alone will require “ 39,200 new passenger and dedicated freighter aircraft over the next 20 years.”
• Technological advances – over the last few years, the industry has gone through a lot of innovation processes and technological improvements. This has allowed Airbus to improve its weaknesses and offer better and faster performance. Also, the fact that aircrafts are becoming more and more secure with the new technologies make people want to travel even more. 
• Competition – the competition in the aerospace industry is practically considered a duopoly. The reason why is because Boeing and Airbus have a combined share of 91% for the whole commercial aircraft market globally. This means that they will not have to fight off small competitors, but also that the competition between both companies is extremely fierce. Which can be a significant threat for Airbus.
• Global pandemic – in 2020, the whole world suffered from the COVID-19 pandemic. This alone had a severe impact on the growth of the commercial aircraft market, as people suddenly had to stop travelling. And although this was a temporary decrease that is slowly starting to recover, aircraft manufacturers like Airbus will be affected at least for the next one year.
• Potential competitors in key markets – of course, the fact that Airbus and Boeing are currently dominating the global market does not mean that this will last forever. Currently, important markets like China and Russia are also planning to develop their own commercial aircraft. If that happens, it will most probably shrink the market share for Airbus.

Next on our list of SWOT Analysis examples is Zara, one of the biggest clothing companies in the world. Zara is a brand owned by Inditex , among with several others such as Bershka, Stradivarius, and Oysho.

SWOT Analysis examples #3: Zara

• Efficient manufacturing & delivery – Zara is one of the most efficient clothing companies in the world when it comes to all operational processes – manufacturing, delivery, supply chain and logistics. Reportedly, the company needs just 1 week to develop a new product and get it to all 2,259 stores it has worldwide, compared to an industry average of 6 months. This gives Zara a huge advantage when it comes to delivering new designs in record time.
• Competitive pricing – additionally, the company also offers a very competitive pricing for the variety and amount of products it offers. Its clothing is targeted to a middle class audience, although it´s also true that the pricing is adapted to the characteristics of each market. For example, the prices for Zara in South Korea are 96% higher than the prices in Spain, taking into account the exchange rate of the study.
• Strong global presence – As we already mentioned, Zara has over 2,200 stores across 96 countries, positioning itself as a strong international brand with a solid support (Inditex, with over 7,000 stores ).
• Fast reaction to new trends – the company is known for imitating high-fashion trends, and it is extremely fast when it comes to spotting and replicating them for its own products.

The company´s strengths is what makes it one of my favourite SWOT analysis examples on this list. They are very well defined, and definitely makes Zara stand out from competitors. However, this does not mean that there are no weaknesses:

• Zero policy advertising – the company is famous for its zero policy advertising. This means that, instead of investing in Marketing and Communication actions, they use the money for opening new stores. Although this policy has some awesome benefits, I think that it´s also a very big weakness. The heavy digital advertising done by competitors can completely overshadow Zara in the long run.
• Limited product stock – because Zara delivers fashion pieces in record time, they don´t produce as much stock as other companies would. Which is not great news for customers who often love a piece, and it is already out of stock – or simply not in the size they need.
• Controversies – additionally, the company is also involved in multiple controversies revolving child labour and paying under minimum wage. As people are getting more and more conscious about these topics, these controversies is doing a lot of harm to the company´s reputation. 
• High fashion imitation – as we already mentioned, Zara is known to imitate fashion trends. Which means that they are not a trend setter, and they do not offer a lot of unique and creative pieces designed exclusively by them.

• Growing demand for high fashion – currently, there is a growing demand for clothing that looks high fashion, but don´t cost thousands of dollars for a single piece. This is a great opportunity for Zara, which does precisely what people want – selling high fashion style for affordable prices.
• Fast fashion – as customer behavior is changing, people get bored with everything faster than ever. And this is true for fashion as well – clothes that people would wear for months and years now get substituted with new pieces much more often. Which is another excellent opportunity for Zara as the so-called “fast fashion is on the rise”.
• Market growth – according to Statista , the growth of the apparel market is steadily increasing by 5-6% every year, which is great news for clothing companies like Zara.

And now, let´s take a look at the external changes that are imposing a threat for this one of our SWOT analysis examples:

• Growing competition – the increasing demand for fashion and apparel also means that competition is growing as well. With huge online providers taking over the Internet such as ASOS, Fashion Nova, Shein and others, Zara´s popularity is becoming threatened by other companies. Especially considering the fact that these providers actually offer products from multiple brands at the same place.
• Increasing costs – another tendency that could impose a significant threat for Zara are the increasing costs for production and raw material. Which, as a consequence, will probably reduce its revenue and profit margins. Especially considering the fact the prices are already relatively low! For now, Zara has managed to develop a well integrated and efficient supply chain that keeps the cost of raw materials low. But this might not last forever, especially if the prices keep rising.
• Regulatory threats – the business industry is gradually getting more and more regulated. On a global scale, governments and legal agencies are regulating all kind of sectors and businesses, and the fashion market is not an exception. This includes labour, quality, customer services, and many other aspects of the industry. All of these regulations might eventually have a negative impact on Zara.

Do you want to learn more about SWOT analysis? You might want to check these articles:

• 9 Effective Ways to Identify Opportunities in SWOT Analysis
• 10 Common SWOT Analysis Mistakes in 2022 & How to Fix Them

Need more SWOT analysis examples? Check out our article on Coca Cola SWOT analysis.

Made with Easelly,  free infographic maker

How do you write a good SWOT analysis?

The first step for writing a good SWOT analysis is to determine your objective - what company and strategy are you going to analyze? Next, take a piece of paper and draw a grid with 4 squares, labeling each one of them as it follows - Strengths, Weaknesses, Opportunities and Threats. The key to a good SWOT analysis is getting as specific as possible with each section in order to get more tangible and clear points of action.

What is a SWOT analysis tool?

SWOT analysis is a technique for strategic planning that allows you to assess and identify the strengths and weaknesses of your company (internal factors), as well as the opportunities and threats that may come from the outside, including market trends and competition (external factors).

Why is SWOT analysis important?

SWOT analysis is important for businesses because it provides them with a simple, but powerful framework to assess their own ability to compete on the market, identifying strengths to highlight and weaknesses to work on improving. It also gives them a quick glance at the market from an outside perspective, allowing them to spot current opportunities and identify potential threats that should be addressed as early as possible.

What is the most difficult part of the SWOT analysis?

While the answer may vary between companies and industries, the most difficult part of the SWOT analysis tends to be Opportunities. The main reason why is because the answer may sometimes require a comprehensive and detailed market research to reveal certain opportunities.

And that was all from me, folks! I hope you liked my in-depth SWOT analysis examples. I think the best way to learn a concept is to see how it is applied in practice. For this reason, I wanted to focus this article from a practical rather than a theoretical perspective. However, if you have any questions, do not hesitate to send me an email at [email protected], or just let me know in the comments below!

Thank you for taking the time to read my article 3 Great SWOT Analysis Examples with Real Companies, and I hope to see you in the next one!

animitevabg

Hello, and welcome to my blog! Let me present myself.

My name is Ani and I am a trilingual Digital Marketing & Analytics Specialist with 10 years of experience across multiple sectors including Cloud-based services, SaaS, Digital payments, Mobile apps, and Executive Education, among others.

My expertise covers areas such as Google Ads, Google Analytics, Search Engine Optimization, Content Marketing, and Social Media.

Join the discussion Cancel reply

Further reading.

• Enhance Customer Satisfaction With This Ultimate Guide

The Future of Property Listings: How Tech is Changing the Game

VPN Protocols: A Comprehensive Analysis

8 Reasons To Hire A Design Agency

How Can A Startup Get Its Own Office Space In New Zealand

The Vital Importance of AI in Marketing and Business

Follow my LinkedIn page for the latest updates!

Recent Posts

• Evergreen Marketing: Building A Timeless Brand Strategy
• The Rise of Virtual Health Assistants: Transforming Patient Care
• Best of Both Worlds: How SEO Helps Mortgage Brokers
• 7 Tips for Hosting Successful Virtual Business Meetings

Recent Comments

• Paul on Top 15 Powerful Alternatives to Google Ads for 3x More Leads
• Lilly on Why is High-Quality Content Important for the Educational Business?
• Lilly on How To Create A Marketing Pamphlet For Your Business
• Katarzyna on 10 Brilliant Kpop Marketing Strategies That Set Guinness Records
• animitevabg on Starbucks Marketing Strategy: Selling 4 Million Coffees Daily
• December 2023
• November 2023
• October 2023
• September 2023
• August 2023
• February 2023
• January 2023
• December 2022
• November 2022
• October 2022
• September 2022
• August 2022
• February 2022
• January 2022
• December 2021
• November 2021
• October 2021
• September 2021
• August 2021
• February 2021
• January 2021
• December 2020
• November 2020
• October 2020
• September 2020
• August 2020
• February 2020
• January 2020
• December 2019
• November 2019
• October 2019
• September 2019
• August 2019
• February 2018
• January 2018
• November 2017
• September 2017
• August 2017
• Business Strategy
• Case Studies
• Data & Analytics
• Digital Marketing
• Evergreen Marketing
• Social Media
• Uncategorized
• Entries feed
• Comments feed
• WordPress.org

JavaScript is disabled in your browser. To view the website properly, please enable JavaScript in your browser settings and refresh the page.

Apply for and manage a grant or program for your business.

Manage your interactions with the R&D Tax Incentive program.

• Business plans
• SWOT Analysis

Develop your SWOT analysis

You can better understand your businesses strengths, weaknesses, opportunities and threats by using a SWOT analysis. Identify what your business is doing well and how you can improve with our SWOT analysis template.

On this page

Why you need a SWOT analysis

Download our swot analysis template, complete your swot analysis, use your swot analysis.

A SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of your business.

Developing a SWOT analysis can help you look at your business in a new way and from different directions. It can also help you to:

• create or fine tune your business strategy
• prioritise areas for business growth to achieve your business goals.

Our template can help you develop your SWOT analysis.

SWOT template

You can start the process by gathering a group of employees or advisors who have different perspectives on your business. If you don’t have employees, you can ask family members, business advisors or mentors. The key is to have different points of view.

Using the prompting questions below as a guide, you can conduct a brainstorming session to discuss ideas about each SWOT category. After brainstorming, create a final prioritised list of points in our SWOT analysis template. List the factors in each category from highest to lowest priority.

Consider your strengths

Strengths are internal, positive parts of your business. These are things that are within your control. Ask yourself:

• What do we do well?
• What do we do better than our competition?
• What unique assets do we have internally (such as knowledge, background, network, reputation or skills) and externally (such as customers, patents, technology or capital)?
• What positive aspects of the business give us a competitive advantage?

Consider your weaknesses

Weaknesses are internal, negative factors. These are things that you might need to improve on to be competitive. Ask yourself:

• What and where can we improve?
• What do our competitors do better?
• Where are the gaps in our assets and resources (such as knowledge, cash or equipment)?
• Is the thing that sets us apart from our competition obvious?
• How can we improve business processes?

Consider your opportunities

Opportunities are external, positive factors that may give a competitive advantage and contribute to success. Ask yourself:

• What trends can we use to our advantage to increase use of our product or service?
• Are there any changes or events that might positively impact us (such as consumer behaviour, regulation, policies or new technology)?
• Has anything changed in the market that creates opportunity for us?
• Do the public like us?

Consider your threats

Threats include external factors beyond your control that may put your business at risk. Consider putting in place contingency plans for dealing with them if they occur. Ask yourself:

• What factors beyond our control could place us at risk?
• What potential competitors may enter the market?
• Are our resource and material supplies unstable or insecure?
• Are there any changes or events that might negatively impact us (such as consumer behaviour, regulation, policies or new technology)?

Once you have completed your SWOT analysis, it can be used to develop strategies for achieving your business goals. You can create a plan to continue building on your strengths while improving on your weaknesses. When using your SWOT analysis to create a strategy, ask yourself:

• How can we use our strengths to take advantage of our opportunities?
• How can we use our strengths to minimise our threats?
• What do we need to do to overcome and minimise our identified weaknesses?

Develop a risk management plan to prepare and protect your business.

Develop your marketing plan, learn how to research your market, your competitors and potential customers., was this page helpful, thanks for sharing your feedback with us..

Our live chat service is open from 8am - 8pm, Monday to Friday, across Australia (excluding national public holidays ).

Learn about the other ways you can contact us .

All our experts are busy now. Please try again later or contact us another way

We're open from 8am - 8pm, Monday to Friday, across Australia (excluding national public holidays ).

We use cookies to give you a better experience on our website. Learn more about how we use cookies and how you can select your preferences.

Farm Management

Division of Extension

Setting Business Strategy Using a SWOT Analysis

• Share on Facebook
• Share on X (Twitter)
• Share via Email

Strategic thinking is the intuitive, visual, and creative process you use to make decisions about your farm business. Strategic thinking is all about thinking ahead, predicting what your competition is going to do, and then taking risks to succeed. You’re thinking big, you’re thinking deep, and you’re thinking across time. You want to envision all potential problems, solutions, and outcomes to a given problem, challenge, or opportunity.

You might not initially think of it this way, but strategic thinking is a visual and a creative process. This process is about exploring your intuitions, gut feelings, and experiences. It’s thinking outside the box, using your critical thinking to solve complex problems, diving into emerging issues, themes, and patterns you’re noticing while also exploring opportunities. 

It’s considering all possible scenarios, not excluding any at first, and then anticipating possible outcomes for any action or inaction you might take. It will help you figure out the best path forward to give you a competitive advantage and add value to your farm. 

How do you incorporate this idea of thinking strategically into your business plan and operations? You make it actionable by envisioning the future and setting goals with steps to achieve them.

A common tool you may have heard used during this process is a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, which helps you find strategies for your business.

Why do we care about strategies? 

It’s because they allow for proactive management, they help us maintain more control over what happens to a farm, and they determine early on if a business idea, enterprise, or opportunity is feasible and the right fit.

Strategic planning can be looked at as a continual, cyclical process we set intentionally then use in our business daily. 

We’ll start at the top in the strategic or long-term phase. In this phase, we begin to set our strategy by asking (and answering): “Where are we now and where do we want to go?” In the tactical or medium-term phase, we ask: “How are we going to get there and what are we going to do?” 

Finally, in the operational or short-term phase, we do what we’ve planned for and evaluate how the plan is working.

The SWOT Analysis

Robert Filek is quoted as saying, “Strategy without process is little more than a wish list.” I want us to keep this in mind. Because there are two pieces to the SWOT analysis, or to even thinking about strategies in general. There’s the process piece, or how we come to our actions, and then there’s the writing down and creating the actionable list piece. We want to make sure we have a good balance between the result and the process.

We want to make sure we’re not stifling the process by rushing to create a list, and we want to make sure we’re not forgetting about what we’re learning and gaining through the process by not being able to create the actionable list we’re moving forward with. Don’t let one stifle the other. 

A SWOT analysis is the identification of strengths, weaknesses, opportunities, and threats to your business. It’s the development of strategies and goals from this analysis. And then, the most important part, it’s the creation of realistic actions to reach those goals. 

This is a great exercise to complete at least once per year to help keep you focused on achieving your mission and vision. Some farms feel it best to revisit or complete the exercise each quarter if there are challenges or growth opportunities looming. It is up to each farm to find the process that works best to keep them focused on the bigger picture and end goal. You can also choose to complete this exercise for the farm as a whole or for an individual issue or enterprise, depending on your needs. A SWOT analysis is a useful tool when thinking through your succession plan and figuring out the course for the farm and family’s future.

Who should be involved in creating a SWOT analysis?

Before you sit down to create the SWOT analysis, it is worth thinking through who should be involved. The easy answer is it depends on the issue you’re addressing. The more complicated answer involves two parts: the leadership team creating the analysis and the stakeholders providing the feedback. 

The leadership team that creates the analysis may consist of owners, partners, C-suite executives, managers, and other decision-makers on the farm. This can include the owner generation, the successor generation, and those that make strategic decisions about the farm’s finances, labor/employees, crop and livestock production, product development, estate plans, risk management, and environmental or sustainability efforts.

Key stakeholders you consult throughout the information-gathering stages include key people and organizations you do business with such as consultants, lenders, financial advisors, risk management agencies, cooperatives, service providers, markets, neighbors, community organizations, and employees.

The accompanying image is an example of a SWOT matrix and strategy analysis worksheet. At the top, you will see an area to list strengths and weaknesses in an internal analysis. On the left, there is an area for an external analysis of opportunities and threats. The middle is where you use the analysis to create strategies based on your findings. Let’s walk through it step by step.

This is an internal analysis where you and the farm’s leadership team identify the business’s strengths and weaknesses. This is a self-assessment where you are looking at the business’s performance, your assets, and management decisions. Ask yourself:

• What is your competitive advantage? 
• What limits what you can do? 
• How has the business performed in the past (during good times and bad)? 
• What trips you up or keeps you up at night? 

Be brutally honest with yourself! The analysis only works if you’re providing accurate information.

To dive a little deeper here, reach out to people within and outside the farm. Gather feedback on others’ perceptions. This feedback can be tough to hear, but it’s important to know how people see your business even if that isn’t the reality that you experience. You will also want to compile industry benchmarks and rank these in terms of their level of importance to your operation’s competitive advantage. You will also want to look at the financial analysis measures from the last 5 years, figure out how business decisions are made, and how the farm has been managed. Examine what went well or poorly and why. 

The next step of the SWOT analysis is to dive into the external factors affecting the farm business. Here you identify external opportunities and threats. Take the time here to gather information on the external environment. You can do this by taking a look at the general condition of the economy and asking:

• How is it affecting or will be affecting the business? 
• What are the trends with input and commodity prices?
• Where is technology headed and how could it help or cause challenges?
• What are consumers or society looking for?

Other things to consider include current or future government rules and regulations and trends or changes in the ag industry. Try to define who you are competing against and then take a look at what they are doing. Make sure to take a global, national, statewide, and local lens. 

Again, take some time to dive into these topics. You can do this by looking at what various media sources are interested in, using the internet or the library to investigate market trends, or talking to various professionals, peers, or neighbors. Ask business partners, employees, customers, consultants, those you do business with, family, and friends for their thoughts and feelings. Remember, right now you are gathering information. You don’t want to exclude options at this point. Including a broad array of perspectives can be helpful when trying to identify the best way forward.

After all the information has been pulled together and recorded, the next step is to recognize and create available strategies to move you toward your end goal.

Creating strategies is your opportunity to find ways you can take advantage of your strengths and minimize or eliminate the impact of the farm’s weaknesses. You are looking to maximize the business’s potential and mitigate risks. You do this by developing cross strategies that pair your strengths and weaknesses with external opportunities and threats. 

Strategies that show up more than once might be areas to focus on and prioritize higher. Think back to when we talked about strategic thinking. You want to be considering all possible scenarios, not excluding any at first, and then anticipating possible outcomes from any action or inaction you might take. This will help you figure out the best path forward to give you a competitive advantage and add value to your farm. Not narrowing down options too soon can also help give you a starting point if your first strategy isn’t working out and needs to be adjusted, or if you’re looking for an alternative later.

Strategy Analysis Examples

Is this process of developing strategies hard for you to visualize? The following are examples from each box in the matrix to help guide you.

Strength–Opportunity Strategy: One of your strengths is connecting with people and keeping good relationships, while one of the opportunities is to provide a specialized or popular product like locally raised beef direct to consumers interested in knowing their farmers. You could expand into direct marketing a product, such as through a website, farmers market, or storefront. Or you could join a coop or group of other farmers looking to do the same.

Weakness–Opportunity Strategy: Your farm has communication challenges, and no one seems to be on the same page, yet there is an opportunity to expand the farm. One strategy might be to implement mandatory team meetings with set agendas and action steps to increase efficiencies, address problems sooner, and reduce communication barriers. It might also help to create an organizational chart to show who handles what and what the “chain of command” is. This would allow you to commit to expansion while making you more confident in being able to achieve growth.

Strength–Threat Strategy: Your farm has low turnover and employees generally enjoy working for you. However, this is an incredibly tight labor environment and people have many available opportunities. A strategy might be to review current HR practices, check in with employees to see how things are going and troubleshoot issues, and implement any changes or improvements such as bonuses, flexible scheduling, better training, vacation, or a reward system.

And finally, a Weakness–Threat Strategy: If your weakness is that you produce and sell one commodity, a threat is fluctuating or low commodity prices. One strategy might be to diversify income streams. Maybe there’s an opportunity for a value-added product, an agritourism opportunity, a new enterprise, or an investment opportunity.

Turning Strategies into Goals

To turn the strategies from the SWOT analysis into goals and action steps, you will want to—

• Identify your top three strategies.
• Decide on which to move forward with.
• Convert these strategies into goals.
• List action steps needed to achieve the goals.
• Identify a person responsible for each step.
• Determine a realistic timeframe for the goal to be completed.
• Schedule a progress check-in.
• Adjust goals and steps as needed.

You may also want to include how much each step/goal will cost (in terms of time, resources, and money) and what your measurement of success will be.

Why do you need to set goals?

Goals supply the strategic framework for results and keep the focus on what matters most. They prioritize which decisions and actions are critical for quickly moving forward in the right direction, and they define what success looks like.

Goals are most powerful when they are owned by the people responsible for achieving them. Involving the team or employee in the goal development process and working together to name the specific measures needed to confirm progress improves commitment to and achievement of the goal.

How do you set achievable goals?

Begin by developing an aspirational statement that is meant to achieve action toward the farm’s vision and strategy. You are answering the question, “What do I hope to achieve that contributes to the farm’s growth and success?”

Next, use the SMART goal framework to help increase the likelihood of success. SMART goals are specific, measurable, achievable, relevant, and time-bound.

Check your goal to see if you can make it more specific, if you can measure progress toward it, if it is realistic and achievable, if it is relevant to your vision and strategy, and if there is a timeframe for it. This helps you develop goals that are focused and more likely to be completed. Estimating the cost of each goal (money, time, effort) also increases the likelihood of success.

Pulling It All Together

A comprehensive SWOT analysis helps a farm acknowledge and be responsive to opportunities and threats in the current business environment. The business strategies derived from the SWOT analysis should be realistic actions that help the farm reach its goals. Spending time developing goals and strategies helps a farm adapt nimbly in a changing environment and make proactive business decisions.

Incorporate strategic thinking on the farm by taking time to remind yourself of your big-picture or long-term vision for yourself and your farm business, analyze your current situation, identify areas of opportunity, set strategic goals to align with your vision, develop an attainable plan of action, and identify who is responsible for each part of the plan. 

Author: Stephanie Plaster

More from Stephanie

Farm Management Newsletter

To stay up to date on the latest information and upcoming programs from Farm Management, sign up for our newsletter.

Latest News

• Cultivating Your Farm’s Future: Farm Succession Workshops Start Feb. 6, 2025
• Wisconsin farmers receive grants for sustainable projects
• Virtual grant-writing workshops for farmers held in September, October
• Farmer suicide prevention summit shares mental health resources

You May Also Like

We teach, learn, lead and serve, connecting people with the University of Wisconsin, and engaging with them in transforming lives and communities.

Explore Extension »

Connect with your County Extension Office »

Find an Extension employee in our staff directory »

Get the latest news and updates on Extension's work around the state

Feedback, questions or accessibility issues: [email protected] | © 2024 The Board of Regents of the University of Wisconsin System Privacy Policy | Non-Discrimination Policy & How to File a Complaint | Disability Accommodation Requests

An EEO/AA employer, University of Wisconsin-Madison Division of Extension provides equal opportunities in employment and programming, including Title VI, Title IX, the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act requirements.