SWOT analysis

SWOT analysis is a strategic tool used most often in marketing and business to assess the internal and external factors capable of affecting an organisation or a particular project. Analysing those factors is followed by synthesis, which results in a matrix of four components: the identified strengths and weaknesses of the business and the threats and opportunities from the external environment — which is where the acronym SWOT itself comes from.

The main job of a SWOT analysis is to help an organisation identify its strengths and use them to seize existing opportunities or to counter existing threats. At the same time it seeks to identify weaknesses and threats so that suitable measures can be taken to mitigate those risks and improve the organisation's overall performance.

SWOT analysis consists of four key parts:

S (strengths): internal positive aspects or advantages of the organisation or a particular project, which can include an excellent team, quality products or a strong brand.
W (weaknesses): negative internal aspects or current limitations of the organisation or project, which can include a lack of resources, a weak management structure or inefficient processes.
O (opportunities): external factors or conditions that could have a positive effect on the organisation or project and that the company could exploit, such as new industry trends or changes in state regulation.
T (threats): external factors or conditions that could pose a risk to the organisation or project, such as sudden shifts in customer preferences.

Read our article about SWOT analysis and download a free Excel template.