SWOT analysis is a technique that organizations and individuals use to define the objectives and other factors that can influence the success of a project or venture. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. When carrying out a SWOT analysis, it is essential to consider both internal and external components because these have a significant impact on the success of a business or project (Gürel & Tat, 2017). The strategic planning process requires the use of SWOT analysis to ensure clear identification of objectives and other critical factors that influence the success of a business or project (Phadermrod et al., 2019). SWOT analysis involves four components that enable the organization to identify internal and external factors that influence the success.
Strengths
In the SWOT analysis process, strengths describe the internal positive attributes, both tangible and intangible within the control of the organization or business. Strengths also capture information such as advantages that the organization have over other competing business or projects, literal human resource, leadership, capital, and technology.
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Weakness
Weakness in the analysis process involves internal negative factors that are holding the business or project back. The elements of weakness can include the challenges that the organization or project faces, for instance, shortage of skilled labor and financial constraints. The organization or business need to address these weaknesses to compete with others effectively.
Opportunities
Opportunities comprise positive external factors that can help the business or project to prosper. Opportunities can include factors such as the innovative new idea that can help the organization or project thrive, positive perception of the business, market growth, and few competitors.
Threats
Threats are negative external factors that are beyond the control of the business or project compromising the success. Even though no one controls these external factors, businesses or projects can benefit by developing contingency plans to address them, thus enhancing their success. Threats can be emerging competitors, changing customer attitudes, and negative media coverage.
Other analysis models can be used together with SWOT analysis, for instance, scenario planning, critical success factor analysis, and PESTLE analysis (Christodoulou & Cullinane, 2019). Scenario planning is an analysis technique that helps in building various plausible views for future business or projects. Critical success factor analysis helps identify vital areas to ensure the success of the project or business. PESTLE analysis help identifies and understands external influences on the business or project.
References
Christodoulou, A., & Cullinane, K. (2019). Identifying the main opportunities and challenges from the implementation of a port energy management system: A SWOT/PESTLE analysis. Sustainability, 11(21) , 6046.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51) .
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44 , 194-203.
