Learning objective

After reading the component you will have a basic knowledge of SWOT analysis. You will be able to do a SWOT analysis when faced with any decision making situation in your organisation. You also have some important tips for successful implementation of SWOT analysis. It will take almost 40 minutes to go through this module, but if you complete the suggested task it will take approximately one and a half hours.


Have you ever asked customers for feedback on a new product, service or process and have you analysed the results of this feedback? Are you threatened by your competitors' fresh ideas? Are you considered as an innovator by the market? All these speculations are part of a SWOT analysis tool. SWOT analysis is a great tool for developing an understanding of an organisation particularly in decision-making situations for either a business, an organisation or an individual. The SWOT analysis headings provide a good framework for reviewing the strategy, position and direction of a company, product, project or person (career).

Doing SWOT analysis can be very simple; however its benefits lie in its flexibility and direction application. A scan of the internal and external environment is an important part of the strategic planning process.1 Environmental factors internal to the firm can usually be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) and threats (T). Such an analysis of the strategic environment is referred as a SWOT analysis.2

The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates.3


1  www.rapidbi.com/created/SWOTanalysis.html
2  InnoSupport: Supporting Innovations in SME. 2.2 SWOT Analysis, 2005
3  lbid

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