SWOT Analysis templates

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What is SWOT Analysis?

SWOT analysis is a type of business analysis that makes sure a project’s objectives are well defined and that all related factors are identified. The SWOT analysis involves four areas: Strengths, Weaknesses, Opportunities and Threats. This analysis process takes both internal and external components into account, as they both can impact the success of a future project or venture.

Strengths in SWOT Analysis

The strengths in a SWOT analysis are the key features within a business that are necessary for the success of a project. They are the resources and capabilities that a business uses to have a competitive advantage. Examples are:

  • A good reputation

  • Strong brand name

  • Business know-how

Weaknesses in SWOT Analysis

The weaknesses within a company are the factors that could prevent successful results for a certain project. Weaknesses can include factors such as departmental rivalry, weak communications, poor funding or inadequate resources. These can hinder a project before it has even started. Examples are:

  • A bad reputation

  • A weak brand name

  • Weak internal communications system

Opportunities in SWOT Analysis

The opportunities in a SWOT analysis are external elements that can help to achieve the objectives set for a project. These can involve vendors who want to work with the business to achieve success or even market conditions that makes the project desirable to the market.

Other opportunities could be:

  • A gap in the market for your product

  • New technology

  • Training

  • Threats

Threats are external factors that can prevent the success of a business project. Possible threats critical to SWOT analysis could be: negative image of the business or brand, no ready-made marketplace for the end product or no available vendors who can supply the necessary raw materials. Other threats can include:

  • New government regulations

  • Introduction of substitute products

  • Change in trend

Benefits of SWOT Analysis

  • Easy and practical to use

  • Easy to understand

  • Focuses on both internal and external factors that can affect a business

  • Helpful in identifying future goals

  • A good starting tool for further analysis

Limitations of SWOT Analysis

  • Factors can be too broad

  • Factors can often be opinions and not facts

  • Excessive list of strengths, weaknesses, opportunities & threats

  • No established method of differentiating strengths from weaknesses and opportunities from threats

Why is SWOT Analysis important?

This business analysis tool can be extremely valuable in shaping your business strategy as it allows you to see things from a new perspective. It can lead to the discovery of previously unknown niches in your industry, or even to help you find out the possible threats that can prevent your business from growing. By knowing your company’s strengths and weaknesses, you are then able to shape the opportunities and avoid the potential threats that can hinder your growth.

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