example of swot analysis in a business plan

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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 .

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How to Write a SWOT Analysis for a Business Plan

• March 21, 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.”

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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.

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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 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 trend s 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 .

Editor’s note: This article was originally published in 2018 and updated for 2021.

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How to Perform a SWOT Analysis for a Business

By Kate Eby | April 26, 2023

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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.

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Article • 17 min read

SWOT Analysis

Understanding your business, informing your strategy.

By the Mind Tools Content Team

What Is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business.

SWOT Analysis is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future. SWOT can also uncover areas of the business that are holding you back, or that your competitors could exploit if you don't protect yourself.

A SWOT analysis examines both internal and external factors – that is, what's going on inside and outside your organization. So some of these factors will be within your control and some will not. In either case, the wisest action you can take in response will become clearer once you've discovered, recorded and analyzed as many factors as you can.

In this article, video and infographic, we explore how to carry out a SWOT analysis, and how to put your findings into action. We also include a worked example and a template to help you get started on a SWOT analysis in your own workplace.

Why Is SWOT Analysis Important?

SWOT Analysis can help you to challenge risky assumptions and to uncover dangerous blindspots about your organization's performance. If you use it carefully and collaboratively, it can deliver new insights on where your business currently is, and help you to develop exactly the right strategy for any situation.

For example, you may be well aware of some of your organization's strengths, but until you record them alongside weaknesses and threats you might not realize how unreliable those strengths actually are.

Equally, you likely have reasonable concerns about some of your business weaknesses but, by going through the analysis systematically, you could find an opportunity, previously overlooked, that could more than compensate.

How to Write a SWOT Analysis

SWOT analysis involves making lists – but so much more, too! When you begin to write one list (say, Strengths), the thought process and research that you'll go through will prompt ideas for the other lists (Weaknesses, Opportunities or Threats). And if you compare these lists side by side, you will likely notice connections and contradictions, which you'll want to highlight and explore.

You'll find yourself moving back and forth between your lists frequently. So, make the task easier and more effective by arranging your four lists together in one view.

A SWOT matrix is a 2x2 grid, with one square for each of the four aspects of SWOT. (Figure 1 shows what it should look like.) Each section is headed by some questions to get your thinking started.

Figure 1. A SWOT Analysis Matrix.

Swot analysis template.

When conducting your SWOT analysis, you can either draw your own matrix, or use our free downloadable template .

How to Do a SWOT Analysis

Avoid relying on your own, partial understanding of your organization. Your assumptions could be wrong. Instead, gather a team of people from a range of functions and levels to build a broad and insightful list of observations.

Then, every time you identify a Strength, Weakness, Opportunity, or Threat, write it down in the relevant part of the SWOT analysis grid for all to see.

Let's look at each area in more detail and consider what fits where, and what questions you could ask as part of your data gathering.

Strengths are things that your organization does particularly well, or in a way that distinguishes you from your competitors. Think about the advantages your organization has over other organizations. These might be the motivation of your staff, access to certain materials, or a strong set of manufacturing processes.

Your strengths are an integral part of your organization, so think about what makes it "tick." What do you do better than anyone else? What values drive your business? What unique or lowest-cost resources can you draw upon that others can't? Identify and analyze your organization's Unique Selling Proposition (USP), and add this to the Strengths section.

Then turn your perspective around and ask yourself what your competitors might see as your strengths. What factors mean that you get the sale ahead of them?

Remember, any aspect of your organization is only a strength if it brings you a clear advantage. For example, if all of your competitors provide high-quality products, then a high-quality production process is not a strength in your market: it's a necessity.

Weaknesses, like strengths, are inherent features of your organization, so focus on your people, resources, systems, and procedures. Think about what you could improve, and the sorts of practices you should avoid.

Once again, imagine (or find out) how other people in your market see you. Do they notice weaknesses that you tend to be blind to? Take time to examine how and why your competitors are doing better than you. What are you lacking?

Be honest! A SWOT analysis will only be valuable if you gather all the information you need. So, it's best to be realistic now, and face any unpleasant truths as soon as possible.

Opportunities

Opportunities are openings or chances for something positive to happen, but you'll need to claim them for yourself!

They usually arise from situations outside your organization, and require an eye to what might happen in the future. They might arise as developments in the market you serve, or in the technology you use. Being able to spot and exploit opportunities can make a huge difference to your organization's ability to compete and take the lead in your market.

Think about good opportunities that you can exploit immediately. These don't need to be game-changers: even small advantages can increase your organization's competitiveness. What interesting market trends are you aware of, large or small, which could have an impact?

You should also watch out for changes in government policy related to your field. And changes in social patterns, population profiles, and lifestyles can all throw up interesting opportunities.

Threats include anything that can negatively affect your business from the outside, such as supply-chain problems, shifts in market requirements, or a shortage of recruits. It's vital to anticipate threats and to take action against them before you become a victim of them and your growth stalls.

Think about the obstacles you face in getting your product to market and selling. You may notice that quality standards or specifications for your products are changing, and that you'll need to change those products if you're to stay in the lead. Evolving technology is an ever-present threat, as well as an opportunity!

Always consider what your competitors are doing, and whether you should be changing your organization's emphasis to meet the challenge. But remember that what they're doing might not be the right thing for you to do. So, avoid copying them without knowing how it will improve your position.

Be sure to explore whether your organization is especially exposed to external challenges. Do you have bad debt or cash-flow problems, for example, that could make you vulnerable to even small changes in your market? This is the kind of threat that can seriously damage your business, so be alert.

Use PEST Analysis to ensure that you don't overlook threatening external factors. And PMESII-PT is an especially helpful check in very unfamiliar or uncertain environments.

Frequently Asked Questions About SWOT Analysis

1. who invented swot analysis.

Many people attribute SWOT Analysis to Albert S. Humphrey. However, there has been some debate on the originator of the tool, as discussed in the International Journal of Business Research .

2. What Does SWOT Analysis Stand For?

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

3. What Can a SWOT Analysis Be Used For?

SWOT analysis is a useful tool to help you determine your organization's position in the market. You can then use this information to create an informed strategy suited to your needs and capabilities.

4. How Do I Write a SWOT Analysis?

To conduct a SWOT analysis, you first need to create a 2x2 matrix grid. Each square is then assigned to one of the four aspects of SWOT. You can either draw this grid yourself or use our downloadable template to get started.

5. How Do SWOT Analysis and the TOWS Matrix compare?

While SWOT analysis puts the emphasis on the internal environment (your strengths and weaknesses), TOWS forces you to look at your external environment first (your threats and opportunities). In most cases, you'll do a SWOT Analysis first, and follow up with a TOWS Matrix to offer a broader context.

6. What Are the Biggest SWOT Analysis Mistakes?

• Making your lists too long. Ask yourself if your ideas are feasible as you go along.
• Being vague. Be specific to provide more focus for later discussions.
• Not seeing weaknesses. Be sure to ask customers and colleagues what they experience in real life.
• Not thinking ahead. It's easy to come up with nice ideas without taking them through to their logical conclusion. Always consider their practical impact.
• Being unrealistic. Don't plan in detail for opportunities that don't exist yet. For example, that export market you've been eyeing may be available at some point, but the trade negotiations to open it up could take years.
• Relying on SWOT Analysis alone. SWOT Analysis is valuable. But when you use it alongside other planning tools (SOAR, TOWS or PEST), the results will be more vigorous.

How to Use a SWOT Analysis

Use a SWOT Analysis to assess your organization's current position before you decide on any new strategy. Find out what's working well, and what's not so good. Ask yourself where you want to go, how you might get there – and what might get in your way.

Once you've examined all four aspects of SWOT, you'll want to build on your strengths, boost your weaker areas, head off any threats, and exploit every opportunity. In fact, you'll likely be faced with a long list of potential actions.

But before you go ahead, be sure to develop your ideas further. Look for potential connections between the quadrants of your matrix. For example, could you use some of your strengths to open up further opportunities? And, would even more opportunities become available by eliminating some of your weaknesses?

Finally, it's time to ruthlessly prune and prioritize your ideas, so that you can focus time and money on the most significant and impactful ones. Refine each point to make your comparisons clearer. For example, only accept precise, verifiable statements such as, "Cost advantage of $30/ton in sourcing raw material x," rather than, "Better value for money."

Remember to apply your learnings at the right level in your organization. For example, at a product or product-line level, rather than at the much vaguer whole-company level. And use your SWOT analysis alongside other strategy tools (for example, Core Competencies Analysis ), so that you get a comprehensive picture of the situation you're dealing with.

A SWOT Analysis Example

Imagine this scenario: a small start-up consultancy wants a clear picture of its current situation, to decide on a future strategy for growth. The team gathers, and draws up the SWOT Analysis shown in Figure 2.

Figure 2. A Completed SWOT Analysis.

As a result of the team's analysis, it's clear that the consultancy's main strengths lie in its agility, technical expertise, and low overheads. These allow it to offer excellent customer service to a relatively small client base.

The company's weaknesses are also to do with its size. It will need to invest in training, to improve the skills base of the small staff. It'll also need to focus on retention, so it doesn't lose key team members.

There are opportunities in offering rapid-response, good-value services to local businesses and to local government organizations. The company can likely be first to market with new products and services, given that its competitors are slow adopters.

The threats require the consultancy to keep up-to-date with changes in technology. It also needs to keep a close eye on its largest competitors, given its vulnerability to large-scale changes in its market. To counteract this, the business needs to focus its marketing on selected industry websites, to get the greatest possible market presence on a small advertising budget.

It's also possible to carry out a Personal SWOT Analysis . This can be useful for developing your career in ways that take best advantage of your talents, abilities and opportunities.

SWOT Analysis Infographic

See SWOT Analysis represented in our infographic :

SWOT Analysis helps you to identify your organization's Strengths, Weaknesses, Opportunities, and Threats.

It guides you to build on what you do well, address what you're lacking, seize new openings, and minimize risks.

Apply a SWOT Analysis to assess your organization's position before you decide on any new strategy.

Use a SWOT matrix to prompt your research and to record your ideas. Avoid making huge lists of suggestions. Be as specific as you can, and be honest about your weaknesses.

Be realistic and rigorous. Prune and prioritize your ideas, to focus time and money on the most significant and impactful actions and solutions. Complement your use of SWOT with other tools.

Collaborate with a team of people from across the business. This will help to uncover a more accurate and honest picture.

Find out what's working well, and what's not so good. Ask yourself where you want to go, how you might get there – and what might get in your way.

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Comments (2)

SWOT is useless. When you try it and you find Weaknesses box bulging, but Strengths & Opportunities completely empty, what can that possibly achieve?

Leslie Bartnicki

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What Is SWOT Analysis?

Understanding swot analysis, how to do a swot analysis, the bottom line.

• Fundamental Analysis

SWOT Analysis: How To With Table and Example

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. The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a prescription.

Subscribe to 'Term of the Day' and learn a new financial term every day. Stay informed and make smart financial decisions. Sign up now .

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 internal sources (strengths of weaknesses of the specific company) as well as external forces that may have uncontrollable impacts to decisions (opportunities and threats).
• SWOT analysis works best when diverse groups or voices within an organization are free to provide realistic data points rather than prescribed messaging.
• Findings of a SWOT analysis are often synthesized to support a single objective or decision that a company is facing.

Investopedia / Xiaojie Liu

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

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.

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 consider. 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

In 2015, a Value Line SWOT analysis of The Coca-Cola Company noted strengths such as its globally famous brand name, vast distribution network, and opportunities in emerging markets. However, it also noted weaknesses and threats such as foreign currency fluctuations, growing public interest in "healthy" beverages, and competition from healthy beverage providers.

Its SWOT analysis prompted Value Line to pose some tough questions about Coca-Cola's strategy, but also to note that the company "will probably remain a top-tier beverage provider" that offered conservative investors "a reliable source of income and a bit of capital gains exposure."

Five years later, the Value Line SWOT analysis proved effective as Coca-Cola remains the 6th strongest brand in the world (as it was then). Coca-Cola's shares (traded under ticker symbol KO) have increased in value by over 60% during the five years after the analysis was completed.

To get a better picture of a SWOT analysis, consider the example of a fictitious organic smoothie company. To better understand how it competes within the smoothie market and what it can do better, it conducted a SWOT analysis. Through this analysis, it identified that its strengths were good sourcing of ingredients, personalized customer service, and a strong relationship with suppliers. Peering within its operations, it identified a few areas of weakness: little product diversification, high turnover rates, and outdated equipment.

Examining how the external environment affects its business, it identified opportunities in emerging technology, untapped demographics, and a culture shift towards healthy living. It also found threats, such as a winter freeze damaging crops, a global pandemic, and kinks in the supply chain. In conjunction with other planning techniques, the company used the SWOT analysis to leverage its strengths and external opportunities to eliminate threats and strengthen areas where it is weak.

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a method for identifying and analyzing internal strengths and weaknesses and external opportunities and threats that shape current and future operations and help develop strategic goals. SWOT analyses are not limited to companies. Individuals can also use SWOT analysis to engage in constructive introspection and form personal improvement goals.

What Is an Example of SWOT Analysis?

Home Depot conducted a SWOT analysis, creating a balanced list of its internal advantages and disadvantages and external factors threatening its market position and growth strategy. High-quality customer service, strong brand recognition, and positive relationships with suppliers were some of its notable strengths; whereas, a constricted supply chain, interdependence on the U.S. market, and a replicable business model were listed as its weaknesses.

Closely related to its weaknesses, Home Depot's threats were the presence of close rivals, available substitutes, and the condition of the U.S. market. It found from this study and other analysis that expanding its supply chain and global footprint would be key to its growth.

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.

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 ."

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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.

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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.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

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.

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What Is A SWOT Analysis? - A Breakdown with Examples

In the dynamic landscape of business, strategic planning is crucial for success. One powerful tool that aids in this process is the SWOT analysis. SWOT, which stands for Strengths, Weaknesses, Opportunities, and Threats, is a comprehensive framework used to assess internal and external factors influencing a business. Let's delve into the essence of a SWOT analysis, understanding its components, and how it serves as a cornerstone for effective strategic decision-making.

What Does SWOT Analysis Stand For?

SWOT analysis is a strategic planning technique designed to help businesses understand their current position and make informed decisions about future directions. It involves a systematic evaluation of internal factors (Strengths and Weaknesses) and external factors (Opportunities and Threats). The ultimate goal is to identify key areas that can be leveraged for growth and improvement.

The Strengths (S)

Strengths represent the internal attributes that give a business a competitive advantage. These can include a strong brand reputation, skilled workforce, proprietary technology, or efficient processes. Recognizing and leveraging strengths is essential for building a robust foundation for success.

The Weaknesses (W)

Weaknesses are internal factors that hinder a business's performance. These could be outdated technology, a lack of market presence, or internal inefficiencies. Acknowledging weaknesses is the first step towards improvement and developing effective strategies to address them.

The Opportunities (O)

Opportunities are external factors that a business can capitalize on for growth. These may include emerging markets, technological advancements, or changing consumer trends. Identifying and seizing opportunities is crucial for staying ahead in a competitive market.

The Threats (T)

Threats encompass external factors that can pose challenges to a business. These might include market competition, economic downturns, or regulatory changes. Recognizing threats allows businesses to proactively plan and implement strategies to mitigate potential risks.

SWOT Analysis: Primary Purpose of a SWOT 

The primary purpose of a SWOT analysis is to provide a structured method for businesses to:

Identify and capitalize on internal strengths.

Address and improve internal weaknesses.

Exploit external opportunities for growth.

Prepare for and mitigate potential external threats.

Example SWOT Analysis:

Swot analysis for greenbrew.

Let's conduct a SWOT analysis for a hypothetical company, "GreenBrew," which is a startup in the sustainable coffee industry. GreenBrew focuses on providing eco-friendly, fair-trade coffee products.

Strengths (S):

Unique Product Offering: GreenBrew's focus on eco-friendly, fair-trade coffee caters to a growing market of environmentally conscious consumers.

Strong Branding: The company has established a strong brand around sustainability and ethical sourcing, resonating well with its target market.

Innovative Packaging: GreenBrew uses biodegradable packaging, which sets it apart from competitors and appeals to its eco-conscious customer base.

Weaknesses (W):

Limited Market Presence: As a startup, GreenBrew has a limited presence and struggles with brand recognition outside its local market.

Higher Price Point: Due to the costs associated with sustainable sourcing and eco-friendly packaging, GreenBrew's products are priced higher than non-sustainable alternatives, which may deter price-sensitive customers.

Supply Chain Complexity: Managing a supply chain that is both sustainable and efficient poses challenges, particularly in ensuring consistency and quality of the coffee beans.

Opportunities (O):

Growing Demand for Sustainable Products: There's a growing trend and consumer demand for sustainable and ethically sourced products, which GreenBrew can capitalize on.

Expansion into New Markets: GreenBrew has the opportunity to expand its market presence both nationally and internationally, leveraging digital marketing and e-commerce platforms.

Partnerships with Eco-Friendly Brands: Collaborating with other eco-friendly brands and cafes could enhance GreenBrew's market visibility and distribution channels.

Threats (T):

Intense Competition: The coffee industry is highly competitive, with numerous players ranging from small local roasters to large multinational corporations.

Economic Downturns: Economic fluctuations can impact consumer spending, particularly for premium-priced products like GreenBrew's sustainable coffee.

Vulnerability to Climate Change: Being in the agriculture sector, GreenBrew's supply chain is susceptible to the impacts of climate change, which can affect crop yield and quality.

By analyzing these strengths, weaknesses, opportunities, and threats, GreenBrew can formulate strategies that leverage its strengths, address its weaknesses, capitalize on market opportunities, and mitigate potential threats. For instance, it can focus on building its online presence to reach a broader market, while also exploring cost-effective supply chain solutions to manage prices without compromising its commitment to sustainability.

SWOT Analysis for TechTrove

Let's conduct a SWOT analysis for a hypothetical online company, "TechTrove," which specializes in providing cloud-based software solutions for small and medium-sized businesses (SMBs).

Innovative Product Line: TechTrove offers a range of cloud-based software solutions tailored to SMBs, including CRM systems, project management tools, and financial tracking software.

Strong Technical Expertise: The company has a team of skilled developers and IT professionals known for their ability to innovate and adapt to changing technology trends.

Scalable Solutions: TechTrove's cloud-based infrastructure allows for scalable solutions that can grow with its customers' businesses, providing a flexible and cost-effective service.

Brand Recognition: As a relatively new player in a crowded market, TechTrove struggles with brand recognition and establishing trust with potential customers.

Dependency on Third-Party Platforms: TechTrove's services are heavily reliant on third-party cloud infrastructure providers, leading to potential vulnerabilities and control limitations.

Customer Support Scaling: As the customer base grows, scaling customer support effectively to maintain high service quality can be challenging.

Increasing Demand for Cloud Services: The demand for cloud services and remote work solutions has been growing, especially in the post-pandemic era, presenting a significant market opportunity for TechTrove.

Strategic Partnerships: Forming partnerships with established tech companies or complementary service providers could enhance TechTrove's market presence and offer bundled solutions to customers.

Expansion into Niche Markets: TechTrove has the opportunity to develop specialized software solutions for niche industries, setting itself apart from competitors.

Intense Market Competition: The market for cloud-based software solutions is highly competitive, with many large and well-established companies dominating the space.

Rapid Technological Changes: The fast-paced nature of the tech industry means that products can quickly become outdated if not continually improved and updated.

Cybersecurity Threats: Being an online company, TechTrove faces constant threats related to data security and privacy, requiring robust measures to protect itself and its customers.

By carefully considering these strengths, weaknesses, opportunities, and threats, TechTrove can develop strategic plans that capitalize on its technical expertise and innovative solutions, address branding and customer support challenges, seize market opportunities in the growing cloud services sector, and safeguard against industry threats. For example, it could invest in targeted marketing campaigns to build brand recognition, enhance its cybersecurity measures to protect customer data, and explore niche markets where its tailored solutions can meet specific industry needs.

By systematically evaluating these factors, businesses can make informed decisions, develop effective strategies, and enhance their overall strategic planning processes. A SWOT analysis is a powerful tool that empowers businesses to navigate the complexities of their internal and external environments. As you embark on strategic planning, consider incorporating this comprehensive evaluation into your process. For a seamless experience, try using Plannit AI to help you conduct your SWOT analysis for your business. This innovative tool utilizes artificial intelligence to guide you through the process, ensuring a thorough assessment and strategic insights at your fingertips.

Strategic planning has never been more accessible. Use Plannit AI to conduct a SWOT analysis today!

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

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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.

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SWOT Analysis In Business (With Examples)

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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.

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40 SWOT Analysis Examples of Real Businesses

• Tyler @ Demplates

Marketing managers need to segregate any business information into appropriate four quadrants of SWOT (Strengths, weaknesses, opportunities & threats).  Even for those who already knew how and what information needs to be allocated where, it is imperative to analyze and understand already existing SWOT analysis example for real businesses. I personally recommend you to read at least a minimum of five examples from the below set of 40 SWOT analysis examples. You might witness some of the points which may represent a close resemblance of the business that you are currently evaluating.

The examples of SWOT analysis will give you a kick-start to analyze your business while our  free SWOT analysis templates can help you get going without any hindrance.

See Also: 40 Free SWOT Analysis Templates In Word See Also: 20 SWOT Analysis Template PPT files

Select and click any of the links provided below to hop and see your favorite example of SWOT analysis:

Apple SWOT Analysis

Starbucks swot analysis (example of a swot analysis), mcdonalds swot analysis, disney swot analysis, costco swot analysis, netflix swot analysis, walmart swot analysis, amazon swot analysis, chipotle swot analysis, samsung swot analysis, coca cola swot analysis, best buy swot analysis, google swot analysis, under armour swot analysis, ford swot analysis, jcpenney swot analysis, home depot swot analysis, facebook swot analysis, adidas swot analysis, south west airlines swot analysis, ikea swot analysis, toyota swot analysis, whole foods swot analysis, at & t swot analysis, microsoft swot analysis, boeing swot analysis, pepsico swot analysis, johnson and johnson swot analysis, lego swot analysis, harley davidson swot analysis, chick-fil-a swot analysis, ibm swot analysis, nordstrom swot analysis, shenzhen city hotel industry swot.

Retail Chain Fashion Goods SWOT

Gossard SWOT

Haier UK Market Entry SWOT

Ellens Stardust Diner SWOT

Crown plaza city center birmingham swot.

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20+ Free SWOT Analysis Templates

By Midori Nediger , Oct 12, 2023

You know what you need if you’re contemplating producing a new product line, jumping into a new industry, or even just working on a company analysis for a school assignment?

A SWOT analysis chart.

SWOT analysis is a great way to effectively evaluate a person, campaign, strategy or product — and if you want to create a SWOT table that impresses (your stakeholders or your college professor), you need a SWOT analysis template.

Read on to see different types of SWOT analysis templates you can create with Venngage, plus top tips and plenty of SWOT analysis examples.

Click to skip ahead:

SWOT analysis templates for strategic decision making

How to do a swot analysis, swot analysis best practices & design tips (+examples).

Ready to dive into your SWOT analysis? I’ve got some cool templates lined up that you can use as a starting point:

SWOT analysis templates for Word

Swot analysis templates for powerpoint, personal swot analysis templates, company swot analysis templates, marketing swot analysis templates, nonprofit swot analysis templates, exec swot analysis templates, consultant swot analysis templates.

You can actually edit any of our SWOT analysis templates above and add them to your Word document as an image file. We offer PNG or PNG HD download options.

Here’s another example of a SWOT analysis template you can create for your Word or Google Docs file:

Note: download capability is only available in a paid Venngage plan .

To create a SWOT analysis for PowerPoint or Google Slides presentation, you can edit one of Venngage’s professionally designed SWOT analysis templates and download them as a PNG. A Venngage Business user can also download the template as a PPTX file and upload it directly to your presentation as a slide.

Besides simple SWOT analysis templates, we also offer presentation templates containing SWOT charts:

To use a Personal SWOT analysis template, first, identify your strengths, weaknesses, opportunities and threats. Prioritize and make action plans for personal and professional growth based on the analysis.

Comparing strengths and weaknesses directly can help give you clarity over areas that you can improve, like in this personal SWOT analysis example.

Rather than thinking about competitors or change in the market, think more about things that may hold you back personally – i.e. a lack of business finances , or an upcoming relocation, as you can see in this SWOT analysis example.

When composing a SWOT analysis for a company, start by taking stock of the company’s internal capabilities. This includes what the company excels at, such as a strong brand or skilled workforce. Be honest about areas where there’s room for improvement.

Next, consider external factors that can impact the company. This could involve exciting possibilities like new markets or technological advancements. Be mindful of potential challenges like increased competition or economic instability.

It aids in understanding the competitive landscape, customer preferences and market trends, allowing companies to make informed decisions about product development, marketing strategies and market expansion.

Simultaneously, honestly identify internal weaknesses such as inadequate resources, operational inefficiencies or gaps in skills.

To thoroughly assess the external environment, remain attentive to emerging market trends and potential growth areas as opportunities, while also considering potential threats such as evolving consumer preferences, regulatory changes or intensified market competition.

It is crucial to maintain objectivity, involve key stakeholders and consider the analysis in the context of both short-term and long-term business objectives. That way, you can ensure the strategic insights gleaned from the SWOT analysis are effectively translated into actionable plans and initiatives.

Analyzing your marketing plan with a SWOT template is a strategic approach. Simply list your marketing strengths (brand recognition, creative content) and weaknesses (limited budget, outdated website).

Then, consider external factors like new social media trends or increased competition. By understanding these elements, you can craft a plan to leverage strengths for new opportunities, address weaknesses to not miss out, and adapt to external challenges.

Most importantly, don’t forget to regularly revisit this analysis to stay on top of the ever-changing marketing landscape.

Equally, by looking at opportunities you can begin to understand potential new markets, as well as under-served areas that you already market within. Marketers, consultants and freelancers often include SWOT analyses in competitor analysis reports .

Looking for more marketing resources?

• How to conduct a SWOT analysis in marketing (+examples)
• The complete guide to marketing infographics
• How to use SEO in your visual marketing
• How to make a marketing plan

Nonprofit organizations can use SWOT analyses to help inform their strategic planning.

A SWOT is a great way to understand how your nonprofit fits into the market, and how you can maximize your impact by running effective targeted campaigns and fundraising initiatives. This SWOT analysis example showcases areas where a nonprofit can improve.

Especially in nonprofits, you often don’t have the luxury of testing out multiple ideas or strategies due to time and budget constraints. Conducting a SWOT analysis early on in your strategy development can help you make the most informed decisions. This SWOT analysis example highlights the threats that a nonprofit should be looking to overcome soon.

Looking for more nonprofit guides?

• The complete nonprofit marketing guide
• Nonprofit communication resources
• Nonprofit storytelling examples

Execs have to wear many different hats within their roles and organizations. Business development is a crucial part of company success, and being fully aware of your organizational strengths and weaknesses is invaluable. For example, there are numerous opportunities in this SWOT analysis example.

When going through a period of rapid growth within your business, you should take some time to conduct a SWOT analysis. This will help to ensure that you are able to reach your growth goals. Doing a SWOT also helps you identify any possible weaknesses that may become issues for your growth further down the line.

The weaknesses in this free SWOT analysis template for Word should be addressed quickly before they become a threat to the company.

A SWOT diagram can also be used to help evaluate employees’ work. You can assess your employees’ performances and provide detailed feedback, like in this SWOT analysis example.

Interested in more resources?

• Business letterhead templates
• Mind map templates
• Business pitch deck templates
• How to write a project plan

Consultants are in a unique position because they are looking to market themselves. Starting out as a consultant can be difficult, but conducting a SWOT analysis of yourself as a consultant can help you discover any unique selling points for your services.

You might also want to conduct a SWOT analysis when delivering work for clients. A SWOT can help inform any project or growth plans that you are recommending. The SWOT analysis example below makes a strong case for the business.

Take a look at page 4 of this consulting proposal template for an example of how to use SWOT analyses in a consulting proposal :

Looking for more consulting templates?

• Consulting proposal templates
• Business proposal templates
• Job proposal templates

A SWOT analysis helps you understand your business’s current position in the market and aids in developing strategies to leverage strengths, mitigate weaknesses, capitalize on opportunities and counter threats.

Follow these simple steps to create a comprehensive SWOT analysis:

• Identify strengths: Recognize internal positive attributes that are within your control, such as unique selling points, skilled workforce or strong brand recognition.
• Pinpoint weaknesses: Assess internal areas that need improvement, such as lack of resources, inefficient processes or poor brand reputation.
• Recognize opportunities: Analyze external factors that could benefit your business, such as emerging markets, technological advancements or changes in consumer behavior.
• Acknowledge threats: Consider external factors that could potentially harm your business, such as new competitors, changing regulations or economic downturns.

Whilst a SWOT diagram is a fairly straightforward evaluation model, there are a couple of SWOT best practice tips you should follow in order to maximize the effectiveness of your SWOT:

Use measurable and quantifiable statements in your SWOT

You should be able to evidence all of the points in your SWOT template, aka prove that you are good at the thing you said you are good at. Highlighting quick delivery is great, but specifying delivery times, like in the template below, is even better:

Make sure all areas of your business are represented when developing the SWOT

Get feedback from different departments on both what their strengths/weaknesses are, but ask what they think your strengths/weaknesses are. This SWOT analysis example has gathered feedback from multiple teams.

Try and keep the lists an even number

If you have 5 strengths, find 5 weaknesses. For every opportunity, try and write down a threat. This makes it easier to compare the categories in your SWOT template.

Have a goal in mind when doing your SWOT analysis

Whether this is developing a new project plan or business, or scaling your revenue – a SWOT diagram is particularly useful when there’s a definitive outcome you’re trying to achieve.

When doing your SWOT analysis, explicitly tie each strength, weakness, opportunity and threat back to how it impacts achieving your goal with this template:

Don’t aim for the perfect SWOT list straight away

When you’re customizing your SWOT analysis template, start with much longer lists gathered in a brainstorming session and whittle the lists down.

Talk about each factor in a category and figure out which ones matter the most to have your SWOT analysis focusing on the most important stuff. Methods like voting or group agreement typically work in this type of setting.

Using online templates or ready-made structures can help organize your thoughts and brainstorming sessions. Here’s one to help you capture your ideas easily.

Make sure your SWOT is thorough

Make sure you’ve thought about every possible strength, weakness, threat, and opportunity. A SWOT is only as valuable as the information you include, so make sure you do your due diligence during the analysis. Take inspiration from this SWOT analysis example.

Format your SWOT in a way that makes sense for multiple uses

If you plan to present your SWOT analysis to an executive at your company, make sure it is clear to understand, and presented in a way that makes it easy to take in all of the information at once – such as a 2×2 grid template. If it’s for a company presentation, use a horizontal SWOT analysis template for PowerPoint.

Think short, mid and long term impacts

Your product might be great now, but what could be happening in the next 6 months that might affect that? What about within the next year? Sure that competitor could be small fish now, but what about if they have an aggressive growth plan in place? You need to be prepared for that to stay ahead of the game, and that’s where a SWOT analysis template comes in.

For example, in this SWOT analysis, both short and long term opportunities were taken into consideration:

Use clever design tricks

Use color in your SWOT matrix to help grab attention. Differentiate different areas of your SWOT, as this SWOT analysis template does.

Are you ready to create your SWOT analysis?

A SWOT analysis is an invaluable tool for evaluation and is particularly useful for small businesses or businesses in times of change. Make sure you follow these SWOT analysis best practice tips to maximize your evaluation opportunities and further your evaluation by conducting a thorough Competitor Analysis .

All of the SWOT analysis examples featured in this blog post are fully customizable SWOT analysis templates available for use on Venngage.  You can also use our Smart Templates to create documents easily.

Once you’ve created your business or personal SWOT analysis, make sure to keep a copy safe for the next time you conduct an evaluation. With Venngage you can keep your work online or download a SWOT analysis PDF if you’re a Business user.

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Start » strategy, 10 chatgpt prompts that could help grow your small business.

Explore how these 10 ChatGPT prompts can transform your small business, from streamlining your workflow to refining your customer service.

Over 49% of companies have found ways to implement ChatGPT into their workflows, proving the value of incorporating artificial intelligence (AI) technology into the workplace. Using this tool can unlock new potential for your small businesses to drive growth from areas that you may not think that AI could help with, such as strategic analysis or pitching investors.

Here are 10 ways your business can use ChatGPT for success, along with prompts to get you started.

[Read more: Getting Started With AI: Artificial Intelligence Applications for Small Businesses ]

Improve employee training programs

Elevate your employee training program by leveraging ChatGPT as an informational resource for employees. Incorporating ChatGPT into your training tools can provide employees with immediate feedback and answers to their questions via a chatbot. Plus, it can create new training materials, including tutorials and quizzes to assist with onboarding.

Try this prompt: “Improve my onboarding program for a new employee in a [position] role. The program will last [length of time] and should focus on [specific tasks/responsibilities].”

Perform a SWOT analysis

Evaluate your business’s standing by conducting a strengths, weaknesses, opportunities, and threats analysis (SWOT) using ChatGPT. This analysis helps businesses uncover areas of opportunity and instances where money may be inefficiently used, allowing for a more strategic allocation of resources and improved operational efficiency.

Try this prompt: “Conduct a SWOT analysis for my [product/service/company], taking into consideration both external and internal factors that affect business operations in [your industry]. ”

Enhance pitch presentations

Writing an effective pitch requires understanding your audience’s needs to demonstrate how your business can be of value in solving their problems. Use ChatGPT to cater your pitch to your target audience, incorporating persuasive elements and articulating a compelling value proposition.

Try this prompt: “Identify areas where I can improve my pitch presentation to demonstrate my value proposition to [your target audience].”

Track social media engagement

Boost your brand visibility by using ChatGPT to track your social media engagement and strategize ways to improve your business’s social media. By analyzing your social media profiles, ChatGPT can offer recommendations on crafting content that resonates with your target audience thereby increasing engagement.

Try this prompt: “Strategize ways to increase my [product/service/company]’s engagement on [social platform]. I want to target [audience or demographic] over [amount of time].”

Over 49% of companies have found ways to implement ChatGPT into their workflows, proving the value of incorporating artificial intelligence (AI) technology into the workplace.

Improve communication with your team

Maintaining consistent communication with your internal team ensures that everybody is working efficiently toward a shared goal. Improve team communication by employing ChatGPT to create templates to communicate important information, such as training materials and company updates.

Try this prompt: “Draft an organized and concise template for my company in [your industry] that promotes internal communication.”

[Read more: AI Tools That Can Help You Start, Run, and Grow Your Small Business ]

Analyze your competition

By using publicly available data, ChatGPT can assess your competitors , identifying their strategies, customer demographics, market position, challenges, and successes. It can then provide insights based on these analytics to boost your business’s value and differentiate it from competitors.

Try this prompt: “List the top [number] competitors in [your industry] and provide a detailed analysis in line with that of a market research consultant.”

Plan strategic meetings

Keep your meetings on track by creating an agenda focused on company goals. Having a structured plan for meetings ensures efficient use of everyone’s time and maintains focus on the agenda, preventing deviations from the topic at hand.

Try this prompt: “Build an agenda that highlights discussion points for a meeting about [topic of meeting]. The meeting’s goal is to [explain the goal].”

Prepare for investment meetings

ChatGPT can also find talking points and strategic insights that engage potential investors. It can draft a solid business plan focused on realistic growth and progress and highlight your business’s market potential.

Try this prompt: “Help me prepare for an upcoming investor meeting about [topic of meeting]. Highlight growth strategies, evaluate the market opportunities, and integrate insights on our business model’s scalability and sustainability.”

Design customer surveys

Create engaging, straightforward, and relevant survey questions aimed at collecting valuable information to support your business’s growth. ChatGPT can even create dynamic surveys , where questions adapt based on customer responses.

Try this prompt: “Build an engaging customer survey for [product/service/company] that collects insights on our brand’s advantages, areas for improvement, and customer satisfaction.”

[Read more: What's the Difference Between Traditional and Generative AI? ]

Craft financial projections

Achieving long-term success hinges on effective financial management. ChatGPT can simplify that process for businesses by creating a comprehensive financial model with budget management systems and communication strategies for engaging stakeholders and investors.

Try this prompt: “Draft a financial projection model for a business in [your industry] that spans [length of time] and focuses on [specific goal].”

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