Swot Analysis
Analysis of Strengths, Weaknesses, Opportunities, and Threats
The acronym SWOT refers to a method of analysis used in strategic planning, but SWOT is also useful for
analyzing any situation or decision. Basically, SWOT provides a methodology for identifying internal and
external factors that are favorable or unfavorable to achieving a certain objective. It is particularly
helpful in identifying areas for development.
The two main categories for analysis in SWOT are:
Internal factors – The strengths and weaknesses internal to the individual/group/
organization.
External factors – The opportunities and threats presented to the individual/
group/organization by the external environment.
The source of the acronym becomes clear as these two categories are expanded:
•Strengths: characteristics of the individual/group/organization that give it an advantage
over others in terms of achieving a specific objective. Capitalize on them!
•Weaknesses: characteristics that place the individual/group/organization at a
disadvantage relative to others in terms of achieving a specific objective. Shore them up!
•Opportunities: external chances for the individual/group/organization to make/achieve
specific objectives more readily. Invest in them!
•Threats: external elements in the environment that could cause trouble for the
individual/group/organization in achieving the specific objective. Mitigate them!
How to SWOT?
To facilitate a SWOT analysis, consider the following questions:
Strengths:
·
What do you/your group/your organization do well?
·
What do other people see as your strengths?
·
What are your competitive advantages?
Weaknesses:
·
What could you/your group/your organization improve upon?
·
What do you wish you could do better?
·
What problems keep reoccurring?
·
What should be avoided?
·
What are your competitive weaknesses?
·
What are your financial weaknesses?
Opportunities:
·
What are the beneficial opportunities facing you/your group/your organization?
·
Where are the beneficial opportunities facing you/your group/your organization?
·
What opportunities will put you ahead of your competition?
·
What are your competitor’s vulnerabilities?
Threats:
·
What obstacles do you face?
·
Could any of your weaknesses threaten you/your group/your organization?
·
What are your competitors doing better than you are doing?
·
Is the economy affecting you/your group/your organization?
·
Are any transitory situations affecting you/your group/your organization?
Once one has completed a SWOT analysis, future direction can become clear. As you generate ideas to
capitalize on strengths, shore up weaknesses, invest in opportunities, and/or mitigate threats, a plan of
action can evolve. Develop specific goals and meet them through that plan of action!
For example, suppose your chapter is struggling to retain members and is looking for a course of action
to meet a retention goal of 95% for the coming year. Here is a quick SWOT:
Strengths:
Dedicated leadership. Relatively small geographical footprint for the group.
Growing number of members who use technology.
Weaknesses:
Repetitive programming. High cost of meeting space.
Opportunities:
New DKG Network. Possible public meeting spaces in new civic center.
Threats:
Local Educators’ Association has strong programming. Area has many
opportunities for entertainment that members may prefer.
From this analysis, one might conclude that two ways to “hold” members might be to strengthen
programming and find a place that is relatively central in the geographical areas so that members will be
more interested in attending and more able to attend. Technologically adept members may use the DKG
Network to build a stronger connection among members and/or to send reminders of meetings. Leaders
might approach the Local Educators’ Association to learn about and perhaps adopt/adapt some of their
most productive programs and/or to cosponsor a major program. Leaders could also investigate the
availability and cost of space in the new civic center.
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
This example demonstrates that SWOT analysis can also lead to productive outcomes through matching
or converting.
Matching involves finding advantages by matching strengths to opportunities. The relatively small
geographical footprint for the group makes the use of public space in a new civic center more feasible.
Converting involves turning weaknesses or threats into strengths or opportunities. By working with the
successful Local Educators’ Association, the chapter can turn the threat posed by that group into an
opportunity for improving their own programs.
Rules for SWOT Analysis
•
Be realistic about the strengths and weaknesses of your organization when conducting SWOT
analysis.
•
SWOT analysis should distinguish between where your organization is today, and where it could
be in the future.
•
SWOT should always be specific. Avoid grey areas.
•
Always apply SWOT in relation to your competition, i.e. better than or worse than your
competition.
•
Keep your SWOT short and simple. Avoid complexity and over-analysis.
•
SWOT is subjective. (Marketing Teacher, 2011)
For additional information on SWOT and multiple examples of SWOT activities with major companies
(Starbucks, McDonald’s, Dell, etc.), seehttp://www.marketingteacher.com/lesson-store/lessonswot.html#lesson
Resources:
Olsen, E.SWOT Analysis: How to perform one for your organization. Virtual Strategist. Retrieved from
http://www.youtube.com/watch?v=GNXYI10Po6A&feature =player embedded#!
SWOT Analysis. MarketingTeacher.com. Retrieved from http://www.marketingteacher .com/lessonstore/lesson-swot.html
SWOT Analysis. Wikipedia. Retrieved from http://en.wikipedia.org/wiki/SWOT_analysis