What it is

SWOT Analysis evaluates Strengths, Weaknesses, Opportunities, and Threats to understand your current position and make strategic decisions.

When to use it

SWOT Analysis is most effective when you need to understand your position and make strategic decisions. Use it when:

  • Starting a new project or business venture
  • Evaluating competitive position in the market
  • Making strategic decisions about direction
  • Assessing internal capabilities and external factors

How to use it

SWOT Analysis guides you through evaluating internal and external factors to make informed strategic decisions.

  1. Identify your strengths - what you do well and what advantages you have.
  2. List your weaknesses - areas for improvement and what puts you at a disadvantage.
  3. Find opportunities - external factors that could benefit you.
  4. Assess threats - external factors that could harm you.

Strengths

Internal positive factors

  • Strong brand recognition
  • Skilled team members
  • Proprietary technology

Opportunities

External positive factors

  • Growing market demand
  • New technology trends
  • Regulatory changes

Weaknesses

Internal negative factors

  • Limited resources
  • Outdated technology
  • Skills gaps in team

Threats

External negative factors

  • New competitors entering
  • Economic downturn
  • Changing regulations

Example

SWOT Analysis helps evaluate position by categorizing factors into actionable insights:

  • Strong customer relationships as a Strength.
  • Limited marketing budget as a Weakness.
  • Growing market demand as an Opportunity.
  • New competitor entering as a Threat.

Strategic Flow

S

Strengths

Customer relationships

→
W

Weaknesses

Limited budget

→
O

Opportunities

Market growth

→
T

Threats

New competitors

Key takeaway

Use strengths to capitalize on opportunities, address weaknesses to minimize threats, and develop strategies that leverage your advantages while mitigating risks.

All tools