SWOT analysis

From Wikipedia, the free encyclopedia

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities,

and Threats involved in a project or in a business venture. It involves specifying the objective of the business
venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve
that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the
1960s and 1970s using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be
incorporated into the strategic planning model. Strategic Planning, has been the subject of much research. [citation
needed]

 Strengths: characteristics of the business or team that give it an advantage over others in the
industry.

 Weaknesses: are characteristics that place the firm at a disadvantage relative to others.

 Opportunities: external chances to make greater sales or profits in the environment.

 Threats: external elements in the environment that could cause trouble for the business.

Identification of SWOTs are essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the
objective is NOT attainable a different objective must be selected and the process repeated.

The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses,
opportunities and threats.[citation needed] It is particularly helpful in identifying areas for development. [citation needed]

Contents
 [hide]

1 Matching and converting

o 1.1 Evidence on the use

of SWOT

2 Internal and external factors

3 Use of SWOT analysis

4 SWOT - landscape analysis

5 Corporate planning

o 5.1 Marketing
 6 See also

7 References

8 External links

[edit]Matching and converting

Another way of utilizing SWOT is matching and converting.

Matching is used to find competitive advantages by matching the strengths to opportunities.

Converting is to apply conversion strategies to convert weaknesses or threats into strengths or

opportunities.

An example of conversion strategy is to find new markets.

If the threats or weaknesses cannot be converted a company should try to minimize or avoid them.[1]

[edit]Evidence on the use of SWOT

SWOT analysis may limit the strategies considered in the evaluation. J. Scott Armstrong notes that
"people who use SWOT might conclude that they have done an adequate job of planning and ignore such
sensible things as defining the firm's objectives or calculating ROI for alternate strategies." [2] Findings
from Menon et al. (1999) [3] and Hill and Westbrook (1997) [4] have shown that SWOT may harm
performance. As an alternative to SWOT, Armstrong describes a 5-step approach alternative that leads to
better corporate performance.[5]

These criticisms are addressed to an old version of SWOT analysis that precedes the SWOT analysis
described above under the heading "Strategic and Creative Use of SWOT Analysis." This old version did
not require that SWOTs be derived from an agreed upon objective. Examples of SWOT analyses that do
not state an objective can be "Human Resources" and "Marketing."

[edit]Internal and external factors

The aim of any SWOT analysis is to identify the key internal and external factors that are important to
achieving the objective. These come from within the company's unique value chain. SWOT analysis
groups key pieces of information into two main categories:

 Internal factors – The strengths and weaknesses internal to the organization.

 External factors – The opportunities and threats presented by the external environment to the

organization. - Use a PEST or PESTLE analysis to help identify factors

The internal factors may be viewed as strengths or weaknesses depending upon their impact on the
organization's objectives. What may represent strengths with respect to one objective may be
weaknesses for another objective. The factors may include all of the 4P's; as well as personnel,
finance, manufacturing capabilities, and so on. The external factors may include macroeconomic
matters, technological change, legislation, and socio-cultural changes, as well as changes in the
marketplace or competitive position. The results are often presented in the form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. For example, it
may tend to persuade companies to compile lists rather than think about what is actually important
in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization
so that, for example, weak opportunities may appear to balance strong threats.

It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual
SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces
valuable strategies is important. A SWOT item that generates no strategies is not important.

[edit]Use of SWOT analysis

The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may
be used in any decision-making situation when a desired end-state (objective) has been defined.
Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis
may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may
also be used in creating a recommendation during a viability study/survey.

[edit]SWOT - landscape analysis

The SWOT-landscape systematically deploys the relationships between overall objective and underlying
SWOT-factors and provides an interactive, query-able 3D landscape.

The SWOT-landscape grabs different managerial situations by visualizing and foreseeing the
dynamic performance of comparable objects according to findings by Brendan Kitts, Leif Edvinsson
and Tord Beding (2000).[6]

Changes in relative performance are continually identified. Projects (or other units of
measurements) that could be potential risk or opportunity objects are highlighted.
 SWOT-landscape also indicates which underlying strength/weakness factors that have had or likely
will have highest influence in the context of value in use (for ex. capital value fluctuations).

[edit]Corporate planning

As part of the development of strategies and plans to enable the organization to achieve its
objectives, then that organization will use a systematic/rigorous process known as corporate
planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business and
environmental factors.[7]

 Set objectives – defining what the organization is going to do

 Environmental scanning

 Internal appraisals of the organization's SWOT, this needs to include an assessment of the
present situation as well as a portfolio of products/services and an analysis of the
product/service life cycle

 Analysis of existing strategies, this should determine relevance from the results of an
internal/external appraisal. This may include gap analysis which will look at environmental factors

 Strategic Issues defined – key factors in the development of a corporate plan which needs to be
addressed by the organization

 Develop new/revised strategies – revised analysis of strategic issues may mean the objectives
need to change

 Establish critical success factors – the achievement of objectives and strategy implementation

 Preparation of operational, resource, projects plans for strategy implementation

 Monitoring results – mapping against plans, taking corrective action which may mean amending
objectives/strategies.[8]
[edit]Marketing

Main article:  Marketing management

In many competitor analyses, marketers build detailed profiles of each competitor in the
market, focusing especially on their relative competitive strengths and weaknesses using
SWOT analysis. Marketing managers will examine each competitor's cost structure, sources
of profits, resources and competencies, competitive positioning and product differentiation,
degree of vertical integration, historical responses to industry developments, and other
factors.

Marketing management often finds it necessary to invest in research to collect the data
required to perform accurate marketing analysis. Accordingly, management often conducts
 market research (alternately marketing research) to obtain this information. Marketers employ
a variety of techniques to conduct market research, but some of the more common include:

 Qualitative marketing research, such as focus groups

 Quantitative marketing research, such as statistical surveys

 Experimental techniques such as test markets

 Observational techniques such as ethnographic (on-site) observation

 Marketing managers may also design and oversee various environmental scanning and
competitive intelligence processes to help identify trends and inform the company's marketing
analysis.

Using SWOT to analyse the market position of a small management consultancy with
specialism in HRM.[8]

Strengths Weaknesses Opportunities Threats

Reputation in Shortage of Well established Large consultancies

marketplace consultants at position with a well operating at a minor
operating level rather defined market niche level
than partner level

Expertise at partner Unable to deal with Identified market for Other small
level in HRM multi-disciplinary consultancy in areas consultancies looking
consultancy assignments because other than HRM to invade the
of size or lack of marketplace
ability
SWOT Analysis (Strengths, Weaknesses, Opportunities,
Threats)
The SWOT analysis is a key factor in the overall success of an organizations’ strategic plan. It identifies the
strengths and weakness of the business entity as well as the opportunities and threats.

The SWOT analysis is a key factor in the overall success of an organizations’ strategic plan. It identifies the
strengths and weakness of the business entity as well as the opportunities and threats. The strengths of a
business can be defined as those actions, activities or characteristics that elevate the business entity above
its competition. Strengths include but are not limited to: 

Convenience, Customer Service, Effectiveness, Location, Pricing, Quality, Reliability, Reputation, Respect,
Responsiveness, Speed, Thoroughness, Variety 
Many of these strengths are generally considered intangible in that they are only measurable through the
opinion of the customer. Some of these strengths appear obvious, but often as business entities mature,
they can lose sight of some of the fundamental strengths that aided them in their success. Entities that
recognize, enhance and appreciate their strengths generally experience long-term success. Entities that
ignore what some consider their core basis for success and venture forward without regard to past success
lose focus and quickly fail. Whether the business entity is profit based or not for profit, such as a Faith Based
Organization, these fundamental principles are applicable; i.e. a church whose strength in attracting
congregants is the fellowship and the local community oriented activities changes their focus toward
primarily missionary functions and outreach activities that involve only a small portion of the population. The
result is that the congregants may feel ignored or worse taken for granted, as the fellowship that attracted
them is ignored or left unattended. Another example; a pizzeria known for the tastiness of their dishes
because the dough was made fresh daily attracts and maintains a steady volume of customers although
their prices are higher than those of the typical chain restaurants that serve pizza. When they change to
ready-made dough the strength of their attraction will be impacted and the quality of the pizza, now
comparable to the large pizza chain businesses, no longer warrant the cost to the customer, and the
business decreases. 

While these examples are not absolutes, they are accurate. The similarity in both instances is that the
strength of the business entity was either ignored or overshadowed by other forces. In many instances,
business entities seeking to change the direction of the organization can successfully do so over time.
Virtually any goal can be achieved when a strategic plan is meticulously outlined and followed, and typically
any effort not thoroughly considered will fail. 

For each strength business entities have, a similar and sometimes equal weakness exists. The goal is to
identify, minimize or neutralize the weaknesses while maintaining the strengths. A short list of strengths
versus weaknesses is shown below 

STRENGTHS 
Convenience
Customer Service 
Location 
Pricing 

WEAKNESSES
Time/cost
Employee training
Limited expansion
Competition
Note that the factor considered a strength, is reflected as a weakness due to time or cost. In many service
oriented industries, the primary consideration that causes consumers to return or not return to a business
revolve around how they perceive they were treated, and how much time was dedicated to them or to their
situation. If one considers the restaurant business, many people will generously tip servers who are more
attentive, bring extra napkins when needed, correct orders quickly without argument and present an
atmosphere of competence. A business that relies on personal service largely links its reputation to the
persons interacting with the customer. While a positive service experience will be shared with few people, a
negative service experience will be shared with many. The cost to the business in terms of time and training
of its employees often is directly reflected as a strength or weakness for the business. 
Opportunities can be realized when weaknesses are identified. Some weaknesses in a business are generic
to the industry and as such provide an opportunity for growth or for a business to elevate itself to a higher
level of excellence by minimizing, neutralizing or eliminating the weakness. For example, a pizza business
that prepares pizzas when ordered seeking to compete with similar businesses may recognize as an industry
weakness the number of checks returned for insufficient funds as the time delay experienced by customers
while the cashier validates the check information. One cost effective method of neutralizing this industry
weakness is to accept credit card, debit card and other similar transfers in lieu of personal checks. Another
method may be to achieve or increase the business’ presence on the Internet by accepting orders and
payment via the Internet. Payment for the product (pizza) is secured prior to the product being provided,
thus minimizing liability for the business, while simultaneously attracting business through a previously
under used market. This practice is currently employed in several service-oriented businesses. Some
correlations between Strengths, Weaknesses and Opportunities include: 

STRENGTHS 
Convenience 
Customer Service
Location 

WEAKNESSES
Time/cost
Employee training
Limited expansion 

OPPORTUNITIES
Evaluate operations
Combine hands on with virtual training
Satellite locations, delivery, relocation 

Opportunities also relate to furthering the success of an organization through a meticulously outlined and
implemented strategic plan. For example a restaurant business seeking to increase revenue without
relocating, may consider as part of their strategic plan, delivery, catering or hosting special events such as
gaming tournaments during non-peak business timeframes; mid-week, optional holidays, etc. A business
might consider merging their strengths with the strengths of other complementary businesses, such as
contracting with a reputable local Internet Service Provider (ISP) and increasing its global presence by
through offering special coupons for on-line customers, while prominently displaying the ISP in its table and
print advertising. 
Threats are generally considered those internal and external factors that are most likely to negatively affect
a business entity. Examples include the threat of a dynamic change in population due to a shift in a major
industry; a significant increase in material costs due to global increase in demand or production cost
increases. Threats also come from the activities of the competition including pricing, quality/quantity,
technology and market availability. One manner of addressing threats is to contrast the threat against a
strength, for example, the threat of a new competitor entering the field brings the possibility of new
inventory or increased variety. The strength of the business that is following a strategic plan likely includes
partnering with complementary business entities that market the business’ variety, availability and
reputation. These strengths aid in offsetting new competition, which must first be considered established in
the industry, before they can expect to grab a share of the market. This is true with the established chain
business entities, as well as the independents. 

Essentially, when a SWOT analysis is completed, part of the strategic plan suggests that Strengths be
contrasted with Weaknesses, Weaknesses be contrasted with Opportunities, Opportunities be contrasted
with Threats and Threats be contrasted with Strengths. While the strategic plan should be developed to
capitalize on the Strengths with Opportunities, the business entity must maintain visibility on its
Weaknesses and Threats. 
 How to Write a SWOT Analysis Report
By marthareggie, eHow Member

swot analysis
User-Submitted Article
A SWOT analysis is an effective way of identifying your company's strengths and weaknesses and
to examine opportunities, threats, and current trends. SWOT analysis consists of five steps:
Strengths, Weaknesses, Opportunity, Threats, and Trends. A SWOT analysis report will help a
company with strategic, tactical, and operational, and contingency planning.
Difficulty: Moderately Challenging
Instructions
1. 1

how to write a swot analysis report

The first step in writing a SWOT Analysis Report is to identify the company's strengths and weaknesses. Three
questions that can be asked are: What is the company's reputation? How do consumers feel about our product
or service? Is our customer service excellent? If the company's reputation is good, for example, this would be
considered a strength. Otherwise, this would be a weakness. However, one way to find out about the
company's reputation is to hire an outside firm to take an independent, anonymous survey, asking employees,
current customers and potential customers their opinions of the company.
2. 2
 swott analysis
The second step in writing a SWOT Analysis Plan is to identify opportunities. Two questions that can be asked
are: Are there other distribution channels, geographic locations, and demographic or population that we can
expand? Can we diversify our product to make other product lines?
3. 3

how to write a swot

The third step in writing a SWOT Analysis Plan is to identify threats. Five questions to ask are: Who are our
main competitors? What do their product line/services consist of? What are their manufacturing capabilities in
comparison to our capabilities? What are their distribution channels and geographic locations? What market
share do they have in comparison to our company?
4. 4

swot analysis trends

The fourth step in writing a SWOT Analysis Plan is to identify trends. This is very important because trends
change; therefore, failure to keep abreast of trends could lead to your company's demise. For this reason, four
questions to ask are: What is the latest trend in my field? Have my competitors taken advantage of the trend? If
I do not take advantage of the trend, what are the possible consequences? Does my company have the
resources?

Read more: How to Write a SWOT Analysis Report | eHow.com http://www.ehow.com/how_5159814_write-swot-

analysis-report.html#ixzz14lzGXPKo

How to Write a SWOT Analysis

By an eHow Contributor

A SWOT analysis is an important part of any marketing or business plan. The "SWOT" in this type of
analysis stands for Strengths, Weaknesses, Opportunities and Threats. When done properly, this
analysis not only helps you assess the current market outlook, it can also help your company
 overcome barriers of entry and other problems. Here's how to write a SWOT analysis for your
company.
Difficulty: Moderate
Instructions
1. 1
Lay out all the strengths your company possesses that will make your product launch a success. This could
include things like a good management team, financial backing or a history in the field. It's basically anything
that would help your business become successful.
2. 2
Evaluate your weaknesses. This is one of the hardest parts of a SWOT analysis, but it's one of the most
important. In this section, you need to identify problems that could cause you to fail. Perhaps you see a lot of
employee turnover, or your business lacks the funds and brand awareness to compete with bigger firms.
3. 3
Look for the opportunities available to you. This section of your SWOT focuses on the things that you could
use to get ahead. If you're selling widgets to customers and you notice that there's a lot of competition between
your suppliers, you may be able to cut a deal to get the widgets cheaper. This would let you sell your product
for less than your competition's.
4. 4
Learn about the threats to your success. An economic recession poses a threat to almost every industry, while
an airplane crash would be a threat mainly to the airline industry. This section covers anything outside your
company that could cause you to fail in business.
5. 5
Wrap it up. Once you've identified your strengths, weaknesses, opportunities and threats, put it all together and
look to the future. Focus on the opportunities section, and decide how your company will proceed to succeed
in future endeavors.

Read more: How to Write a SWOT Analysis | eHow.com http://www.ehow.com/how_2317743_write-swot-

analysis.html#ixzz14m6nXq00
 How to Write Weaknesses for a SWOT
Diagram
By an eHow Contributor

A SWOT analysis is a great business evaluation tool. The "W" in SWOT stands for identifying the
weaknesses in your company. A SWOT analysis can help you evaluate where you might improve
quality or acquire expertise. This is worthwhile because improving your internal operations can
translate into increased market share. Here's how to determine where you can improve within your
organization by writing the weaknesses in a SWOT analysis.
Difficulty: Moderate
Instructions
1. 1
Take a look at the competition. You cannot possibly know what your company is lacking if you don't know
what your competition is doing.
2. 2
Look at geographical and sociological factors of office and operation location. Consult general market data
from your region to see if they are a contributing factor in the success for your business.
3. 3
Do some market research. Enlist a research firm to analyze your customer base and learn what they expect.
Take your findings and compare them to what your company provides.
4. 4
Have a staff meeting. In most cases your staff will see things that you don't, including where problems lie. You
may also want to provide an anonymous response avenue, such as a suggestion box, to aid in identifying
weaknesses.
5. 5
Collect your findings and organize them into groups under the weaknesses heading of your SWOT analysis. Be
sure to include things like missing assets, lacking skills and unemployed resources.
6. 6
Word your weaknesses carefully. These items need to be stated in the negative and you need to be specific
with each weakness

Read more: How to Write Weaknesses for a SWOT Diagram |

eHow.com http://www.ehow.com/how_2121829_write-weaknesses-swot-diagram.html#ixzz14m6v20JG
 How to Write a Good SWOT Analysis
By Christina Inge, eHow Contributor
updated: July 3, 2010

Departmental SWOT analyses requires input from all department members.

Writing a SWOT analysis is a frequent need in many areas of business, from product development to
marketing. SWOT is the acronym for Strengths, Weaknesses, Opportunities and Threats. Normally,
a SWOT analysis takes the form of a four-part grid, addressing each of the four factors. Basic SWOT
analyses are often off-the-cuff exercises, leading to a simple chart, without adequate perspective on
how best to react to threats and opportunities, and where strengths and weaknesses originated. A
good SWOT analysis can get you thinking about new strategic directions, address fundamental
structural issues in your business and move forward toward new initiatives.
Difficulty: Moderate
Instructions
1. 1
Gather information from various departments on company strengths and weaknesses, if the SWOT analysis is
for an entire organization. If the analysis is for a single department, solicit information from all members of the
department--everyone has valuable insights to share. Many quickly-made SWOT analyses are based solely on
the creator's interpretation and understanding of a business situation, rather than on multiple perspectives, so
incorporating interdisciplinary perspectives will greatly enhance the value of the analysis.
2. 2
Develop the Strengths and Weaknesses sections first, since they form part of the basis for analyzing the
potential impact of the opportunities and threats. Focus on the top three to eight strengths and weakness of the
organization or department. Provide details on each strength and weakness. Rather than simply list all the
strengths and weaknesses you can think of, without details, as in a basic SWOT analysis, provide insight into
how each originated. For a truly effective analysis, suggest ways to enhance strengths and minimize
weaknesses.
3. 3
Gather information on overall industry and economic conditions to gain insight into both Opportunities and
Threats. Don't analyze only your industry, but also look at allied industries, and the economy as a whole, to
make your SWOT analysis better. Look at factors such outsourcing, the growth of the industry, potential new
technologies and all other changes you foresee, even if you are not sure if they are a threat or an opportunity. It
 is quite possible for some factors in your industry to be both. You will analyze the potential impact of all
changes in the light of your strengths and weaknesses.
4. 4
Identify your top competitors. Analyze those organizations, looking at their product lines, market share and
other factors that will help you identify how much of a competitive threat they are.
5. 5
Determine which changes and developments in your industry are threats, and which are opportunities. Don't
hesitate to identify a development as potentially both, highlighting which contingencies could make a new
factor a threat, and which contingencies would make it an opportunity--something that will add greater depth
the the analysis. Identify three to eight threats and opportunities. To enhance the value of the SWOT analysis,
offer possible responses to all threats, and ways of taking advantage of all opportunities.

Read more: How to Write a Good SWOT Analysis | eHow.com http://www.ehow.com/how_6693468_write-good-

swot-analysis.html#ixzz14m72UlcQ

How to Write a SWOT Analysis

By an eHow Contributor

A SWOT analysis is an important part of any marketing or business plan. The "SWOT" in this type of
analysis stands for Strengths, Weaknesses, Opportunities and Threats. When done properly, this
analysis not only helps you assess the current market outlook, it can also help your company
overcome barriers of entry and other problems. Here's how to write a SWOT analysis for your
company.
Difficulty: Moderate
Instructions
1. 1
Lay out all the strengths your company possesses that will make your product launch a success. This could
include things like a good management team, financial backing or a history in the field. It's basically anything
that would help your business become successful.
2. 2
Evaluate your weaknesses. This is one of the hardest parts of a SWOT analysis, but it's one of the most
important. In this section, you need to identify problems that could cause you to fail. Perhaps you see a lot of
employee turnover, or your business lacks the funds and brand awareness to compete with bigger firms.
3. 3
Look for the opportunities available to you. This section of your SWOT focuses on the things that you could
use to get ahead. If you're selling widgets to customers and you notice that there's a lot of competition between
 your suppliers, you may be able to cut a deal to get the widgets cheaper. This would let you sell your product
for less than your competition's.
4. 4
Learn about the threats to your success. An economic recession poses a threat to almost every industry, while
an airplane crash would be a threat mainly to the airline industry. This section covers anything outside your
company that could cause you to fail in business.
5. 5
Wrap it up. Once you've identified your strengths, weaknesses, opportunities and threats, put it all together and
look to the future. Focus on the opportunities section, and decide how your company will proceed to succeed
in future endeavors.

Read more: How to Write a SWOT Analysis | eHow.com http://www.ehow.com/how_2317743_write-swot-

analysis.html#ixzz14m6nXq00
About SWOT Diagrams
By an eHow Contributor

About SWOT Diagrams

A SWOT diagram is simply a visual representation of the SWOT business analysis. The diagram is a
powerful tool for any business, and can determine strengths, weaknesses, opportunities, and
threats. The SWOT analysis diagram can help a business formulate a strategy to differentiate a
product line or service from that offered by a competitor. Create a SWOT diagram using a Word
document or spreadsheet application.

From Essentials: Introduction to the SWOT Analysis

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History
1. An important component of any company business plan, the SWOT analysis is credited to
Albert Humphrey, a business consultant for the Stanford Research Institute in California, USA.
During the 1960's and 70's, he developed the SWOT analysis diagram with his research team while
studying data from Fortune 500 companies.
Significance
2. The SWOT analysis is an essential element of the marketing analysis portion of a business
plan. Developing a SWOT analysis during the planning stages of a business helps to identify ideas
and issues that the company may face now and/or in the future.
Features
3. The SWOT anaylysis diagram is a useful and informative way to identify four types of
information about a business. The "S" and "W" represent the strengths and weaknesses (the internal
analysis of a business), while the "O" and "T" represent the external opportunities and threats that
may affect a business. 

Examples of a company's strengths and weaknesses may include name recognition, location, and
experience. Opportunities and threats may include the overall economic situation, competitors'
market share, and the financial resources of the competition.
Identification

4.
SWOT Diagram Quadrants
There are several way to create a SWOT diagram, but all are basically composed of four quadrants.
Each quadrant represents one letter of S, W, O, and T. A business planner fills in data applicable
within each quadrant. For example, the business's strengths should be placed in the upper left
quadrant; the business's weaknesses in the upper right, the business's opportunities in the lower left,
and the business's weaknesses in the lower right.
Benefits
5. By researching external factors such as the market and competition, a business owner can
identify opportunities to explore internal strengths or weaknesses that may be advantageous to the
business. Without careful study of the environment through a SWOT analysis, a company may fail to
see trends in the marketplace. A SWOT analysis diagram captures these observations in an easy to
read format.
Considerations
6. As with all parts of a business plan, the SWOT analysis diagram should be reviewed and
updated on a continual basis since a business inevitably changes throughout its existence. Likewise,
external threats and opportunities are constantly evolving, and businesses would be wise to manage
their businesses in response to its environment. Such prudence is beneficial to the success of any
business.

Read more: About SWOT Diagrams | eHow.com http://www.ehow.com/about_4622889_swot-

diagrams.html#ixzz14m9wPT00

How to Write a SWOT Analysis

By Jeanne Grunert, eHow Member

User-Submitted Article
A SWOT analysis refers to an analysis of the strengths, weaknesses, opportunities and threats
facing your business in the coming year. A SWOT analysis is always part of a marketing plan. All
marketing managers must be able to craft a thorough, detailed yet pointed SWOT analysis as part of
writing a general marketing plan, and business people and entrepreneurs would be well advised to
learn the techniques used to create a SWOT analysis. While there's no mystery on how to write one,
being able to pinpoint the strengths, weaknesses, opportunities and threats facing your business is
often difficult. It's tough to take an impartial, practical view. It's helpful if you work on this exercise with
a trusted friend, colleague or someone else who can review your first attempts and provide you with
feedback on how well you've captured the essence of a SWOT analysis.
Difficulty: Moderately Challenging

Instructions
Things You'll Need:
 Computer
 Pencil, pen or paper (if you prefer this over using a computer)
 Several hours to write your analysis
 A business group, mastermind group, colleague or friend who can review your SWOT analysis and provide
feedback
 Information on your industry
  Competitor or market research (see my other article on how to obtain competitive intelligence)

1. 1
If using a computer, open Microsoft Word. Create a Table with eight boxes. Make the top two horizontal boxes
skinny, leave the second row fat, make the next row skinny and leave the last row fat. You can also simply
draw this diagram on paper.

2. 2
In the skinny headers across the first row, write or type the words "Strengths" in the first box and
"Weaknesses" in the second.

3. 3
In the third row, the other skinny row, type or write the words "Opportunities" in the first box, and "Threats" in
the second.

4. 4
Now begin to fill in the boxes. Focusing first on the Strengths box, think about the strengths your particular
business or product brings to the market place. Strengths should be unique to your business and truly areas in
which your company excels. Do you have a patent on the product? A resident expert who can pitch the product
better than anyone else in the industry? An excellent customer service reputation? Superior packaging,
shipping, design? These are all strengths. Begin to list them, using either bullet points and phrases or very
short, declarative statements. List only those strengths your firm or product truly excels.

5. 5
Next, look at the Weaknesses. Every product or company has weaknesses. Don't be afraid to list them. A frank
assessment serves you in good stead, and propels your plan forward, since part of your marketing strategy
should be to fix the weaknesses. Weaknesses may include poor delivery time, an easy to copy product, late to
the market, high price point, or anything that a competitor can exploit to take business from you.

6. 6
Moving on the Opportunities section, begin listing what you view as the Opportunities for your product or
business within the time frame of your marketing plan. It's best to look only six months to a year out, since
anything further is usually "pie in the sky" thinking and will change depending on the economy, market forces,
and customer feedback. What opportunities do you see for your product or business? An opportunity may be a
partnership with another firm, an expansion of a product line, niche markets, market analysis demonstrating
new customer segments as yet untapped, or potential new products.

7. 7
Lastly, look at the Threats facing your business. Threats come from outside the firm (weaknesses are always
internal weakenesses). What is threatening profitability, growth or expansion? Typical threats include the poor
 economy, rising manufacturing prices, new competitors, new government regulations or taxes, or anything
outside your company.

8. 8
Now that you have your SWOT analysis complete, have a colleague, friend, mentor or impartial business
person review it. Chances are they'll see areas for improvement. Incorporate their feedback.

9. 9
Once your SWOT analysis is complete, the next step is to incorporate it into a business plan or marketing plan.
The marketing strategy and tactics should address areas within the SWOT that you've pinpointed. Typically,
strategies exploit opportunities and threats, while tactics incorporate strengths and minimize weaknesses. An
example is a SWOT analysis for a retail giftware firm. The firm's strenghts include unique artwork, great
customer feedback, and fast shipping. Weaknesses are that artists can jump to other companies at any time and
competitors can easily purchase the same wholesale products (if they can find the distributors). Opportunities
may exist among various niche markets, such as gifts for teachers, doctors or nurses. Threats may be from
rising importations costs, proposed internet tax hikes, and new government mail order taxes. To address this,
our fictional gift company now proposes a strategy of communicating the value proposition of unique art,
incorporating a customer feedback and rating system on their site, and tactics including finding new outlets
that will avoid the threat of new taxes if they can. Now you can see from this example how one uses the
information in a marketing SWOT analysis to think through various parts of the marketing or business plan.
This is only a very small, simplistic exercise. Usually the results of the SWOT occupy many pages within the
marketing plan and can be quite detailed.