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SWOT Analysis- Definition, PDF, Example of a Company

SWOT Analysis- Definition

SWOT Analysis: An organization’s strengths, weaknesses, opportunities, and threats can be identified and analyzed using the SWOT analysis framework. The SWOT acronym is made up of these words.

The main objective of a SWOT analysis is to raise awareness of the variables that influence business decisions or the formulation of business strategies. SWOT analyses the internal and external environments as well as the variables that may affect the viability of a decision in order to achieve this.

SWOT analysis is frequently employed by businesses, but it is also widely used by nonprofit organizations and, to a lesser extent, by individuals for self-evaluation. The SWOT analysis is also used for projects, goods, and activities. For instance, CIOs could utilize SWOT to assist in producing a template for strategic business planning or doing a competitive study.

SWOT Analysis- Elements for a Company

SWOT analysis considers four factors, as its name suggests:

  • Resources and qualities that exist internally that contribute to success, such as a wide range of products, devoted clients, or effective customer service.
  • Success is more challenging to achieve due to internal variables and resources such as a poor brand, heavy debt, or insufficient staffing or training.
  • External elements that the company can benefit from, such as advantageous export tariffs, tax breaks, or new enabling technology.
  • External issues, such as heightened competition, declining demand, or a shaky supply chain, could endanger the entity’s success.

To organize the items listed under each of these four aspects, a SWOT matrix is frequently employed. The matrix typically consists of a square divided into four quadrants, each of which represents a different element. In the first quadrant, decision-makers identify and outline specific strengths, followed by weaknesses, opportunities, and threats.

A SWOT analysis can be conducted by businesses or individuals using a variety of SWOT analysis templates. Typically, these templates are modifications of the conventional SWOT matrix with four quadrants.


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SWOT Analysis of a Company- Reasons

SWOT analysis is frequently employed either at the outset or during a process of strategic planning. The framework is regarded as a potent tool for decision-making since it helps a company to identify previously unidentified prospects for success. Additionally, it flags dangers before they become too serious.

SWOT analysis can help a company pinpoint a market segment where it has a competitive edge. Additionally, it can guide people into a vocation that best utilizes their abilities and warn them of potential dangers.

When utilised to logically recognise and include business issues and concerns, this type of analysis is most effective. As a result, SWOT frequently incorporates a multidisciplinary, cross-functional team that is open to innovations. The most successful teams would base their SWOT analysis on real-world knowledge and information, such as revenue or cost numbers.

SWOT Analysis- PDF

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SWOT Analysis- Examples

A chart or list of a subject’s features should be the outcome of a SWOT analysis. A hypothetical store employee’s SWOT analysis would look something like this:

  • Strengths: include good interpersonal skills, punctuality for shifts, adept customer service, compatibility with all departments, physical stamina, and good availability.
  • Weaknesses: Takes lengthy smoking breaks, lacks technical proficiency, and is particularly prone to chit-chatting.
  • Opportunities: Include working at the storefront, supporting consumers in finding products, maintaining customer satisfaction, assisting clients after purchases to ensure buying confidence, and replenishing shelves.
  • Threats: include things like: occasionally missing time during periods of high business owing to breaks, occasionally spending too much time talking to customers after sales, and talking too much to coworkers.

How To Perform A SWOT Analysis?

Decision-makers typically need to state the goal they aim to accomplish for the business, organization, initiative, or individual before conducting a SWOT analysis. The decision-makers then identify the opportunities, dangers, and opportunities, as well as the weaknesses and strengths.


There are many tools available to help in decision-making. They frequently offer inquiries that relate to each of the four SWOT factors.


Participants could be asked, for instance, “What do you do better than everyone else?” and “What advantages do you have?” to determine their company’s strengths. They might be questioned, “Where do you require improvement?” to pinpoint their deficiencies. To find possibilities and risks, they would ask themselves questions like, “What market trends could improve sales?” and “Where do your competitors have market share advantages?”

How To Use A SWOT Analysis?

A SWOT analysis should be used to help a company understand where it stands now and in the future in the market or relation to a certain objective.


Using this study, businesses or individuals can identify competitive advantages, promising future developments, as well as current and possible issues. With such knowledge, they can create business plans or set personal or organizational objectives to build on strengths and correct weaknesses.


Decision-makers can determine whether a project, effort, or product is worthwhile to pursue and what is required to make it successful once SWOT variables have been identified. As a result, the study tries to assist a company in matching its resources to the marketplace.


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SWOT Analysis: Pros

1. It Enables More Comprehensive Tool Identification

A SWOT analysis enables a team to determine the best tools to use in order to complete an exercise or reach a goal. The utility of these instruments can be assessed, and the efficacy of the procedures can be examined prior to usage.

2. You’re Able To Recognize Threats And Opportunities.

A SWOT analysis can be used by businesses to pinpoint the main opportunities and dangers present in any particular market. As a result of this tool’s scalable findings, every small community can have its data enlarged to the regional, governmental, or global levels.

SWOT Analysis: Cons

1. There are no restrictions

There aren’t any actual restrictions that come with using a SWOT analysis. This might make it challenging to separate what might be relevant from what might not be, especially in the beginning.

2. Sometimes, It Can Lead To Oversimplification.

Some ideas become more approachable to a wider audience when they are simplified. The only difficulty is that SWOT can be used to continue pushing simplicity, which causes an issue or worries to be oversimplified at the highest levels.

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SWOT Analysis: FAQs

Ques 1. How does SWOT affect how decisions are made?

Ans. The outcomes of the SWOT analysis can be utilized to guide the processes of strategic planning, idea generation, and decision-making.


Ques 2. SWOT analysis: Can it identify your threats?

Ans. You can use a SWOT analysis to determine the advantages, threats, and weaknesses of your company.


Ques 3. What aspect of the SWOT analysis is the most challenging?

Ans. Opportunities – This is always the hardest part. For some startups, it is simpler because they started because of an opportunity. However, this can be difficult for an operating business.


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