SWOT Analysis – What is it, and how to use it?

SWOT Analysis is a strategic planning tool that helps organisations to identify their Strengths, Weaknesses, Opportunities, and Threats. It is a simple yet effective framework that can be used to evaluate an organisation, project, or idea, and can be used in various contexts, such as business, education, healthcare, and personal development.

SWOT stands for:

  • Strengths: The internal factors that an organisation possesses and are beneficial to achieving its objectives.
  • Weaknesses: The internal factors that an organisation lacks or are unfavourable to achieving its objectives.
  • Opportunities: The external factors that an organisation can leverage to achieve its objectives.
  • Threats: The external factors that can negatively impact an organisations objectives.

A SWOT analysis involves conducting a comprehensive review of these four factors and developing a strategic plan based on the findings. The analysis is usually done in a grid format, with each factor occupying a quadrant.

Here’s an example of how to conduct a SWOT analysis for a small business:


  1. High-quality products or services
  2. Established brand reputation
  3. Skilled and experienced workforce


  1. Limited financial resources
    Inadequate marketing strategy
    Inefficient operational processes


  1. Increasing demand for the type of products/services offered
  2. Emerging technologies that can improve operations
  3. Expansion into new markets


  1. Intense competition from established players
  2. Changing customer preferences
  3. Economic downturns that can reduce demand

Based on the analysis, the business can develop a strategic plan that leverages its strengths and opportunities, while addressing its weaknesses and threats. For example, the business could focus on improving its marketing strategy, investing in new technologies, and exploring new markets to grow its revenue and market share.

When to do a SWOT analysis?

SWOT Analysis

A SWOT analysis can be used in various situations and contexts, such as:

  1. Business planning: A SWOT analysis can help businesses identify their strengths, weaknesses, opportunities, and threats in relation to their industry, competitors, and market trends. This information can then be used to develop a strategic plan that leverages strengths and opportunities while addressing weaknesses and threats.
  2. Project planning: A SWOT analysis can help project teams identify internal and external factors that can impact the success of their project. This information can then be used to develop a plan that maximises strengths and opportunities while mitigating weaknesses and threats.
  3. Personal development: A SWOT analysis can be used by individuals to assess their own strengths and weaknesses and identify opportunities and threats in their personal or professional lives. This information can be used to develop a personal development plan that focuses on areas for improvement and opportunities for growth.
  4. Marketing planning: A SWOT analysis can help marketers identify the unique selling proposition of a product or service, understand the competition, and identify potential market opportunities and threats.
  5. Organisational development: A SWOT analysis can help organisations identify areas of improvement in their internal processes and procedures, as well as external factors that may impact their operations. This information can then be used to develop a plan for organisational development that focuses on maximising strengths and opportunities while addressing weaknesses and threats.

Limitations of SWOT Analysis

While SWOT analysis is a valuable tool for strategic planning, it does have some potential drawbacks that should be considered:

  1. Subjectivity: SWOT analysis is subjective and based on the opinions and perspectives of those conducting the analysis. This can lead to bias or incomplete information if the analysis is not conducted thoroughly or objectively.
  2. Lack of prioritization: While SWOT analysis identifies strengths, weaknesses, opportunities, and threats, it doesn’t prioritize them. Without clear prioritization, it can be difficult to determine which factors are most important to address and which should be given less attention.
  3. Limited scope: SWOT analysis is a high-level overview of internal and external factors, and may not capture the full complexity of a situation. It may miss important factors or nuances that could impact the analysis.
  4. Lack of action: A SWOT analysis on its own does not lead to action or change. It is a tool for identifying key areas for improvement, but it requires further planning and implementation to translate the analysis into action.
  5. Lack of focus on external factors: While SWOT analysis considers external factors, such as opportunities and threats, it may not fully capture the complexity of external environments, such as market trends, government regulations, or social and cultural factors.

Despite these potential drawbacks, SWOT analysis remains a widely-used and effective tool for strategic planning. It is important to use SWOT analysis in conjunction with other tools and approaches to ensure a comprehensive and objective analysis that leads to actionable strategies.


SWOT analysis is a valuable tool for any organisation looking to develop a strategic plan that is informed by a thorough analysis of internal and external factors. It is a straightforward and practical way to identify key areas for improvement and develop a roadmap for achieving organisational goals.

Image Credit: [1] [2]

You May Also Like

About the Author: Anuj Seth

Anuj is a certified PMP with over 20 years of Software Development and Management experience. He founded PM Tips in 2020. Contributors are welcome. Drop him a note via the Contact page.

Leave a Reply

Your email address will not be published. Required fields are marked *