SWOT Analysis 101

Learn how to apply and interpret SWOT analysis for strategic planning. SWOT is a simple yet powerful tool used to analyze the positives and negatives of a business or project, helping to make informed decisions. Learning to use the SWOT matrix will help you in developing strategies to overcome weaknesses using your strengths and opportunities.

This guide is a part of Wisparent's management toolkit series.

1. A guide for understanding and
applying SWOT for strategic
planning
SWOT ANALYSIS
WISPARENT TOOLKITS FOR BUSINESS
AND ORGANIZATIONAL EXCELLENCE
A GUIDE FOR
UNDERSTANDING AND
APPLYING SWOT FOR
STRATEGIC PLANNING

2. SWOT Analysis is a technique for Situational Analysis and Awareness,
In enterprise it is often used in strategic planning.
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SWOT stands for
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It is completely scalable brainstorming technique.
–can be used in the purview of improvement or business strategy.
SWOT helps in targeting a well-suited and sustainable path and position.
SWOT analysis used to bring matters into perspective
–as to where the organization stands and what it lacks; what are its goals and risks
–so that an appropriate and secure path can be chosen for success.
Strengths and Weaknesses are often internal factors while Opportunities and Threats are
typically external forces. Hence SWOT Analysis is also known as Internal-External
Analysis.
SSTRENGTHS
INTERNAL
ANALYSIS
POSITIVE
WWEAKNESS NEGATIVE
OOPPORTUNITIES
EXTERNAL
ANALYSIS
POSITIVE
TTHREATS NEGATIVE
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4. What do you
do well?
Where do you
need to
improve?
What obstacles
do you face?
What avenues
are you
targeting?
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1.What competitive advantages does your business enjoy?
2.What capabilities do you offer better than most others?
3.What is your Unique Selling Proposition?
4.Why do customers prefer your?
5.What resources, skills or materials can you leverage that
others cannot?
6.What unique business model do you have that can give
partners/vendors more value?
1.What competitive advantages does your business enjoy?
2.What capabilities do you offer better than most others?
3.What is your Unique Selling Proposition?
4.Why do customers prefer your?
5.What resources, skills or materials can you leverage that
others cannot?
6.What unique business model do you have that can give
partners/vendors more value?
S
O
W
T
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1.What do you need to improve?
2.What are your shortcomings in comparison to competitors?
3.What insufficiencies hinder the achievement of business
objectives and goals?
4.What are the factors that affect your sales?
1.What do you need to improve?
2.What are your shortcomings in comparison to competitors?
3.What insufficiencies hinder the achievement of business
objectives and goals?
4.What are the factors that affect your sales?
S
O
W
T
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1.What prospects can you use to your advantage?
2.What are the factors that make the situation favorable for
you?
3.What existing market trends do you see as favorable to your
business?
4.What are the new or emerging trends that you should
embrace for a competitive advantage?
5.What consumer behavior patterns hold promise? (also
population profiles and socio-economic factors)
6.What government policies can prove helpful for your
business or projects?
1.What prospects can you use to your advantage?
2.What are the factors that make the situation favorable for
you?
3.What existing market trends do you see as favorable to your
business?
4.What are the new or emerging trends that you should
embrace for a competitive advantage?
5.What consumer behavior patterns hold promise? (also
population profiles and socio-economic factors)
6.What government policies can prove helpful for your
business or projects?
S
O
W
T
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1.What are external obstacles to the business?
2.What competitor actions are undermining your position?
3.What quality standards and regulations or changes in them
are affecting your products/services?
4.What problems seem to be hindering progress?
5.What technology changes are disadvantageous to your
products/services?
1.What are external obstacles to the business?
2.What competitor actions are undermining your position?
3.What quality standards and regulations or changes in them
are affecting your products/services?
4.What problems seem to be hindering progress?
5.What technology changes are disadvantageous to your
products/services?
S
O
W
T
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9. Observing and contemplating the pros and cons of a situation helps in
discovering efficient ways to find solutions and bridge gaps.
The SWOT Matrix is useful in assessing the situation to develop/fine-tune
strategies.
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For instance, advancing strengths can help in tapping opportunities while
eliminating weaknesses can attract newer ones.
Considering the potential threats in pursuing an opportunity can help in
recognizing and protecting against risks.
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WT
1. Add a dieelvariant in the luxury car
product line. (T1, W1)
2. Pull out of Australian market. (T2, W2)
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Develop actionable strategies by simply
analyzing the relationship of S, W, O and T
Strengths and Weaknesses (SW) -
How to leverage strengths to improve weak areas
STRENGTHS
(Positive, Internal)
WEAKNESSES
(Negative, Internal)
Opportunities and
Threats (OT) -
How to use prospects to
overcome or evade
threats
OPPORTUNITIES
(Positive, External)
Strengths and
Opportunities (SO) -
How to use fortes and
assets to tap
opportunities
Weaknesses and
Opportunities (WO) -
How to eliminate
weaknesses to attract
new opportunities
THREATS
(Negative, External)
Strengths and Threats
(ST) -How to channel
strengths and assets to
counter threats and
risks
Weakness and Threats
(WT) -How to fix weak
links to prevent threats
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WT
1. Add a dieelvariant in the luxury car
product line. (T1, W1)
2. Pull out of Australian market. (T2, W2)
Objective:
An automobile manufacturing company looking to
strengthen its position in the Australian luxury car
market.
SW
1. Utilize partnering assembly unit executives for labor law advise. (S3, W2)
2. Research affluent population’s style and functionality preferences in
luxury cars. (S1,W1)
STRENGTHS
(Positive, Internal)
1. Strong R&D and product
engineering.
2. Primed and scalable production
floor.
3. Strategic Alliance with an
Australian assembly plant.
WEAKNESSES
(Negative, Internal)
1. Single product, no variants in
luxury vehicle segment.
2. Lack of experience in Australian
labor laws
OT
1. Develop diesel variants and high-
mileage, fuel efficient engines.
(O1,T1)
2. Set up units in Australia and
explore strategic partnership with
German automotive for assembly
and supply chain.
OPPORTUNITIES
(Positive, External)
1. Growing market for luxury cars
with high customization.
2. Govt. incentives for
manufacturing units set up in
Australia.
SO
1. Research, Design and Produce
luxury cars models in multiple style
and capacity variants. (O1, S1)
2. Set up production unit in
Australia. (O2, S2, S3)
WO
1. Bring in expertise to develop a
wide variety and personalization in
the product line. (W1,O1)
2. Consult with or recruit executives
with experience in Australian labor
laws. (W2, O2)
THREATS
(Negative, External)
1. Petrol prices surge
2. German auto giants monopolizing
Australian luxury vehicle segment.
ST
1. Improve fuel efficiency in engines
(S1,S2,T1)
2. Advance R&D in automation and
self-driving cars to prevent German
brands from competing in the local
space (S1, S2, T2)
WT
1. Add a diesel variant in the luxury
car product line. (T1, W1)
2. Pull out of Australian market. (T2,
W2)
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12. Keep in mind that the SWOT matrix and chart are purely instruments for brainstorming.
Some boxes may carry ideas that seem like replications/duplicates of other boxes. This
is normal and expected as recurring ideas and notions are often worthy of exploring.
Some ideas may contradict others since there could be more than one way to interpret
the relationships among S,W,O and T.
The tool is intended to help teams come up with innovative approaches and identify
new tactics and game plans to improve the overall position of the company or achieve
objectives.
For instance, in the above luxury car example, idea 2 in the WO box conflicts with idea
2 in WT box. These are two different interpretations of the best course of action.
The purpose of the tool is simply to identify as many “ways forward” as possible.
The ideas will then be weighted for viability in the later stage of strategy discussions
where the fine-tuning and filtering will take place. In the compilation stage, the ideas
may be adjusted based on objectives and aligned with strategies.
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W O T
S
SW SO ST
W
WO WT
O
OT
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SWOT Matrix Template
Following templates can be downloaded and
used for real world SWOT Analysis.

15. SWOT Analysis
For Strategy Analysis
ScenarioBriefing: Strengths Weaknesses
Opportunities Opportunity-Strength Strategies Opportunity-WeaknessStrategies
Threats Threat-StrengthStrategies Threat-WeaknessStrategies
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Analyzed By: Version:Date:Project Name:
-CC BY-SA 3.0 Tool -SWOT Analysis
Use Case -Strategic planning, brainstorming and decision making

16. SWOT Analysis
Internal External
Strengths Weaknesses Opportunities Threats
1.
2.
3.
4.
1.
2.
3.
4.
1.
2.
3.
4.
1.
2.
3.
4.
Wisparent.com
-CC BY-SA 3.0 Tool -SWOT Analysis
Use Case -Strategic planning, brainstorming and decision making
Analyzed By: Version:Date:Project Name:

17. SWOT Analysis
Helpful Harmful
Internal
Strengths Weaknesses
External
Opportunities Threats
Wisparent.com
Analyzed By: Version:Date:Project Name:
-CC BY-SA 3.0 Tool -SWOT Analysis
Use Case -Strategic planning, brainstorming and decision making

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