SWOT analysis is a strategic planning framework used to evaluate an organization’s competitive position by analyzing four key elements: Strengths, Weaknesses, Opportunities, and Threats.
Internal Factors
Strengths These are internal attributes and resources that provide competitive advantages, such as:
- Diverse product lines
- Strong customer service
- Loyal customer base
Weaknesses These represent internal limitations that hinder success, including:
- Weak brand presence
- Excessive debt
- Inadequate staffing
External Factors
Opportunities These are external elements that can be leveraged for success:
- Favorable market conditions
- Tax incentives
- New enabling technologies
Threats These are external factors that could jeopardize success:
- Increasing competition
- Weakening demand
- Supply chain uncertainties
Implementation Process
To conduct a SWOT analysis:
- Define the objective clearly
- Identify internal strengths and weaknesses
- Analyze external opportunities and threats
- Use the insights to develop action plans
Overall, the internal factors could be analysed by using VRIO framework; while the external factors could be analysed by using STEEP framework.
