Strength, Weakness, Opportunities, and Threats Analysis

Acronym
SWOT
Also Known As
SWOT Analysis
Description

A strength, weakness, opportunities, and threats (SWOT) analysis is a strategic technique used to identify elements of strength, weakness, opportunity, and threats. The analysis is done to make an organization aware of forces that could affect it in the future, improving decisionmaking and preparedness.

Uses

To develop strategies for business and marketing.

How do I use this tool?

1. COMPOSE A TEAM to conduct the analysis. Ensure the team is multifaceted with various parts of the organization represented.

2. BRAINSTORM ISSUES that appear relevant to each of the four SWOT perspectives.

3. COMPILE THE ANALYSIS RESULTS.

4. DISCUSS and determine which issues will have the greatest influence on the organization.

5. OUTLINE STRATEGIES OR ACTIONS based on the findings.

Expertise Required
This tool is an advanced tool and requires formal training or education.
Advantages

Aids strategic decisionmaking.

Prepares an organization for the future.

Is simple.

Can uncover opportunities your organization can easily exploit.

Disadvantages

Is important to avoid oversimplification.

Where can I go to learn more?

Andersen B. Understanding the organization's stakeholders and strategic direction. In: O'Mara P, editor. Business process improvement toolkit. 2nd ed. Milwaukee, WI: ASQ Quality Press; 2007. p. 9-25.