SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a framework for identifying and
analyzing the internal and external factors that can have an impact on the viability of a project, product, place or
person.
The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors
involved in making a business decision.
To avoid the specified errors and to take maximum from the SWOT-analysis, follow these simple rules.
 Do separate research on each market segment, department, product to get more objective results.
 Be impersonal and use the versatile incoming information. Certainly, it is not always possible to carry
out the analysis by results of extensive marketing researches. But, on the other hand, it is impossible to
charge it to a single person as it won’t be so exact and deep, as the analysis which has been conducted in
the form of group discussion and an exchange of ideas. It is important to understand that the SWOTanalysis is not simple numeration of managers’ suspicions. It should be based on the objective facts and
the research data.
 Strengths with opportunities as well as weaknesses with threats should not be confused. Weaknesses and
strengths are internal factors of an enterprise. It is possible to control them. While threats and
opportunities are external factors that are beyond your control.
 Strengths and weaknesses should be identified from the point of view of a customer. Conduct interviews
or surveys among clients to make sure of your assumptions.
 Use precise, unambiguous statements.
 For each factor of weaknesses and threats, try to find ways to eliminate or minimize it. For strengths and
opportunities – ways to enhance and use them. Write down all data to the decision matrix.
1. Write down the main goals, tasks of a company or a project. Find out motives.
2. You should understand distinctions between the SWOT elements: strengths, weaknesses, opportunities
and threats. Strengths and weaknesses are internal characteristics of the company, hence, under its
control. Opportunities and threats are connected with characteristics of the market environment and are
not subject to organization influence.
3. At this stage, it is advisable to start using presentations that can be created using a S.W.O.T. analysis
template, which will help visualize and display the table.
4. Fill the matrix column strengths, weaknesses, opportunities and threats.
Strengths:
Start by asking the question, “What are we good at?” This is a broad question, but in the beginning stages of
your discussion, you should accept all answers.
 Financial Strengths: What is your most reliable source of financial growth? Is it your current
customers? A particular product? Your service fee structure?
 Customer Strengths: Where is your customer growth coming from? Is this coming from referrals, or a
particular industry segment like healthcare or retail? Is it mainly retail or commercial? Why are your
customers choosing you over your competitors?
 Internal Strengths: What do you do very well as an organization? Are you the first to innovate
products in your industry? Do you have strong customer relationships or partnerships?
 Learning & Growth Strengths: Where do you excel insofar as your employees are concerned? Is it
your compensation model? Could it be your workforce development program? Your culture?
Weaknesses:
Weaknesses are negative factors that detract from your strengths. These are things that you might need to
improve on to be competitive.
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Are there things that your business needs to be competitive?
What business processes need improvement?
Are there tangible assets that your company needs, such as money or equipment?
Are there gaps on your team?
Is your location ideal for your success?
Discuss the received matrix with colleagues, partners or any relevant person. Find out how “strength” can be
used to overcome “weakness” and effectively protect against uncontrolled factors.
Opportunities:
Following your discussion on threats, ask those in leadership to look toward the future and consider, “Where do
we see big possibilities for our organization?”
 Financial Opportunities: What is your biggest opportunity to improve your finances? This might be
starting a new product line, increasing customer retention, or going after a new geographical area.
 Customer Opportunities: Where could you dramatically improve with your customers? Could you
improve your online interface? What about cross-selling related products, or better understanding your
customers’ purchasing habits?
 Internal Opportunities: What processes will drive you well into the future if you could improve upon
them? This may entail partnering with a mortgage origination company or developing neighborhood
sponsorships.
 Learning & Growth Opportunities: What opportunities do you have to leverage staff? For example,
do you have cross-training opportunities? Could you make a few tweaks to improve your culture and
thus your retention?
Threats:
After identifying opportunities, zero in on your biggest threats by asking, “What do we see on the horizon as
being potentially harmful to our organization?” Threats are external factors - opposition of competitors, changes
in laws, natural disasters, and political sanctions and so on, that you have no control over. You may want to
consider putting in place contingency plans for dealing them if they occur.
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Do you have potential competitors who may enter your market?
Will suppliers always be able to supply the raw materials you need at the prices you need?
Could future developments in technology change how you do business?
Is consumer behavior changing in a way that could negatively impact your business?
Are there market trends that could become a threat?
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Determining the strengths and weaknesses of a business, identifying growth factors and external threats.
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Simplicity of carrying out and efficiency for any forms of commercial activity. An express analysis can
be conduct by any entrepreneur or group of employees without the help of specialists.
Defining the relationship between weaknesses and strengths in terms of growth opportunities, taking
into account external risks. This is one of the main tasks that S W O T analysis solves – to find leverage
for disadvantages and become better.
Absence of necessity to collect arrays of information for the analysis. Quite often, all the data is already
at hand, you just have to organize it.
Quantitative calculation of factors and options for effective development, taking into account all market
realities. A composite or mixed calculation algorithm allows you to deeply consider growth
characteristics.
Assessment of the internal potential of a company, enterprise’s resources, identification of possible
problems and measures development to level them.
Strengths weaknesses opportunities and threats analysis is an analytical tool that does not provide clear
numerical indicators or guidelines for action. First of all, this is clear, structured information. Further
analytical work is required.
There is no temporary dynamics. If the market situation changes or changes occur within a company,
then the analysis should be carried out again.
SWOT operates with subjective information, which complicates work.
UPer Crust Pies, a specialty meat and fruit pie cafe in Michigan’s Upper Peninsula. They sell hot, ready-to-go
pies and frozen take-home options, as well as an assortment of fresh salads and beverages.
The company is planning to open its first location in downtown and is very focused on developing a business
model that will make it easy to opens up the possibility of franchising.
SWOT analysis for UPer Crust Pies:
With the SWOT analysis complete, you’re ready to convert it into real strategy. After all, the exercise is about
producing a strategy that you can work on during the next few months.