SWOT Analysis

A SWOT analysis helps you understand your current situation and what you might face in the future. It shows you what you do well, where you need to improve, chances to grow, and risks to watch out for.

Parts of a SWOT Analysis

The two axes behind SWOT are simple. A factor is either internal (something inside your control) or external (something in the wider environment), and it is either helpful or harmful. The four quadrants below come from combining them.

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quadrantChart
    title SWOT Analysis
    x-axis Helpful --> Harmful
    y-axis External --> Internal
    quadrant-1 Weaknesses
    quadrant-2 Strengths
    quadrant-3 Opportunities
    quadrant-4 Threats
  

Strengths

These are things a person, business, or project does well. Examples include a strong team, special skills, or resources that others do not have.

Weaknesses

These are areas that need improvement. Examples include limited money, skills that need development, or not enough people to do the work.

Opportunities

These are chances to grow or do better. A new trend that fits your work, changes in laws that benefit you, or new technology that makes things easier are all opportunities.

Threats

These are problems or risks that could cause trouble. Examples include competition, events that harm your work, or new laws that make things harder.

Flashcard

What are the 4 parts of a SWOT analysis?

Tap to reveal

Answer

• Strengths: what you do well (internal)
• Weaknesses: areas needing improvement (internal)
• Opportunities: external chances to grow
• Threats: external risks that could cause problems

Check Yourself

Start by checking that you can name each part of a SWOT analysis.

Now sort each situation into the right category. The trick is to ask two questions: is it internal or external, and is it helpful or harmful? Strengths and weaknesses are internal; opportunities and threats are external.

Using SWOT Analysis

Making Decisions

By looking at strengths, weaknesses, opportunities, and threats, people can make better choices. They can use what they do well to take advantage of opportunities and deal with problems.

Planning for the Future

SWOT analysis helps with planning by showing where to focus effort in order to grow and avoid problems.