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SWOT analysis

SWOT analysis

SWOT Analysis

SWOT is one the key situation analysis tools used in strategic planning. SWOT stands for strengths, weaknesses, opportunities and threats.

One of the great beauties of SWOT is that it summaries the competitive position of a company in words on one page in much the same way that the balance sheet captures financial health in numbers. The other great beauty of SWOT is its versatility in that it can be applied in numerous ways to analyse and summarise for example markets, competitors, customers, channels, products, services, departments and even the competitive position of countries. SWOT is a commonly used tool is business. However, common practice falls short of best practice.

The common practice SWOT (and PEST) analysis consists of numerous items listed under each of the four headings. This is a brain dump.  A brain dump is not a bad place to start, but to bridge to best practice three things need to be done.

  1. Focus on what’s important and reduce the number of bullets in each quadrant to no more than six.
  2. List the bullets in order of priority i.e. top strength first.
  3. Balance the number of bullets across the quadrants as appropriate i.e. three strengths, six weaknesses, three opportunities and four threats is a very different business situation to one with six strengths, three weaknesses, three opportunities and four threats.

Best practice is rarely rocket science, merely basic practice executed well.

To discuss your business critical issue

Please call Paul New on 020 8390 9972 or 07790 501225 or send a message.

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To discuss your business critical issue, please call Paul New on 020 8390 9972 or 07790 501225 or send a message.


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