June 24, 2014
What is SWOT analysis? SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. Most people conduct SWOT analyses using a simple matrix like the one in the photo above. This matrix will help you write a SWOT analysis and organize your thinking about where your company is, what is the competitive environment you’re operating in, and what things you should take into consideration when doing strategic planning.
Most people consider their strengths and weaknesses as internal criteria for analysis and opportunities and threats as external. Ideally, though, you should conduct this analysis not only for your organization, but for the competition as well. No matter how good a SWOT analysis of your own company is, if you don’t consider the strengths, weaknesses, opportunities, and threats of your main competition, you haven’t adequately analyzed the business environment you’re operating in.
SWOT analysis is an excellent beginning to strategic thinking, but you should continue your thoughts with questions like these:
Take a look at a sample SWOT analysis.
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