SWOT Analysis

Modified on 2009/10/23 13:02 by tmkern — Categorized as: Uncategorized

See Also:
Core Competencies
Porter's Five Forces of Competion
How to Write an Action Plan
How to Turn Idle Cash into a Valuable Resource
How to Turnaround a Company

SWOT Analysis¶

SWOT analysis is a method of assessing a company’s competitive position. It involves analyzing the company’s strengths, weaknesses, opportunities, and threats. It is a useful analytical tool for business decision-making.

The SWOT analysis separates the competitive environment into internal and external components. The idea is to objectively evaluate the company’s strengths and weakness, to objectively evaluate the industry’s opportunities and threats, and then to match up strengths and opportunities to implement profitable initiatives. The analysis can also be used to identify areas that need improvement.

Advantages and Disadvantages

SWOT analysis is a simple and straightforward method of evaluating projects and objectives. It is also a simple and straightforward method of conveying business strategy and initiatives to employees. The disadvantage is that it may be too simplistic. SWOT analysis may overlook the nuances and finer details of a complex situation.