Management Tools - SWOT Analysis (B)
What is the SWOT analysis? When can we use SWOT analysis? What questions are the best to be used during SWOT analysis?
Posted: Feb 2008
SWOT Analysis is the management tool, which is used for strategic analysis of current and future position of the company, as well as assistance in decision making. SWOT is an acronym and it stands for Strength, Weakness, Opportunity, and Threats. SWOT Analysis tool is used in a framework as it is shown below:
In the SWOT Analysis Strength and Weakness are reflecting the situation within the company. Opportunity and Threats within the SWOT Analysis are depicting the surrounding of the company. The SWOT Analysis is mostly used for group work and brainstorming during workshops. During the process of analysis it is advisable to use questions:
SWOT Analysis - Strength:
What are our capabilities?
What are our gaps in capabilities?
SWOT Analysis - Opportunity:
Erica Olsen: SWOT Analysis
What are market opportunities?
What are competitor’s weaknesses?
What are favorite industry and technology trends?
What are consumer preference opportunities?
SWOT Analysis - Threats:
Are there any negative legislative effects?
Are there any environmental negative influences?
Are there any macro economical trends that have negative impact?
Is there any shift of consumer preference from our segment?
The SWOT Analysis is very usable in the business, during Business Planning Process, the design of Projects or new Products, evaluating the business idea, assessing the business process, analysis of the market, competition, etc.
SWOT Analysis as a tool for scanning the organization is usually used in conjunction with the Porter’s Five Forces analysis, witch is used for analysis of external factors.