Print this chapterPrint this chapter

SWOT Analysis

What Are the Elements of a SWOT Analysis?

A SWOT analysis focuses on Strengths, Weaknesses, Opportunities, and Threats. 

Remember that the purpose of performing a SWOT is to reveal positive forces that work together and potential problems that need to be recognized and possibly addressed. 

We will discuss the process of creating the analysis below, but first here are a few sample layouts for your SWOT analysis.

Ask participants to answer these simple questions: what are the strengths and weaknesses of your group, community, or effort, and what are the opportunities and threats facing it?

Internal External
Strengths Weaknesses Opportunities Threats

 

 

 

 

 

 

 

If a looser structure helps you brainstorm, you can group positives and negatives to think broadly about your organization and its external environment.

Positives Negatives
  • Strengths
  • Assets
  • Resources
  • Opportunities
  • Prospects
  • Weaknesses
  • Limitations
  • Restrictions
  • Threats
  • Challenges

 

Below is a third option for structuring your SWOT analysis, which may be appropriate for a larger initiative that requires detailed planning. This "TOWS Matrix" is adapted from Fred David's Strategic Management text. 

  STRENGTHS
1.
2.
3.
4.		 WEAKNESSES
1.
2.
3.
4.
OPPORTUNITIES
1.
2.
3.
4.		 Opportunity-Strength (OS) Strategies
Use the strengths to take advantage of opportunities
1.
2.		 Opportunity-Weakness (OW) Strategies
Overcome weaknesses by taking advantage of opportunities
1.
2.
THREATS
1.
2.
3.
4.		 Threat-Strength (TS) Strategies
Use strengths to avoid threats
1.
2.		 Threat-Weakness (TW) Strategies
Minimize weaknesses and avoid threats
1.
2.

 

David gives an example for Campbell Soup Company that stresses financial goals, but it also illustrates how you can pair the items within a SWOT grid to develop strategies. (This version of the chart is abbreviated).

  STRENGTHS
  • Current profit ratio increased
  • Employee morale high
  • Market share has increased

 

 WEAKNESSES
  • Legal suits not resolved
  • Plant capacity has fallen
  • Lack of strategic management system

 
OPPORTUNITIES
  • Western European unification
  • Rising health consciousness in selecting foods
  • Demand for soups increasing annually

 

 Opportunity-Strength (OS) Strategies
  • Acquire food company in Europe (S1, S3, O1)
  • Develop new healthy soups (S2, O2)
 Opportunity-Weakness (OW) Strategies
  • Develop new Pepperidge Farm products (W1, O2, O3)
THREATS
  • Low value of dollar
  • Tin cans are not biodegradable

 

 Threat-Strength (TS) Strategies
  • Develop new biodegradable soup containers (S1, T2)
 Threat-Weakness (TW) Strategies
  • Close unprofitable European operations (W3, T1)

 

This example also illustrates how threats can become opportunities (and vice versa). The limitation of tin cans (which aren't biodegradable) creates an opportunity for leadership in developing biodegradable containers. There are several formats you can use to do a SWOT analysis, including a basic SWOT form that you can use to prompt analysis, but whatever format you use, don't be surprised if your strengths and weaknesses don't precisely match up to your opportunities and threats. You might need to refine, or you might need to simply look at the facts longer, or from a different angle. Your chart, list, or table will certainly reveal patterns.