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SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective.
It involves monitoring the marketing environment internal and external to the organization or individual. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies
SWOT analysis is part of the Harvard Policy Model, which has been developed as part of the business policy courses taught at the Harvard Business School since the 1920s.
"The main weaknesses of the Harvard model are that it does not draw attention to strategic issues or offer specific advice on how to develop strategies, except to note that effective strategies will build on strengths, how to take advantage of opportunities, and how to overcome or minimize weaknesses and threats."
SWOT analysis can be used to help in the pursuit of that objective
Strength
Attributes of the organization those are helpful to achieving the objective.
Weaknesses
Attributes of the organization those are harmful to achieving the objective.
Opportunities
External conditions those are helpful to achieving the objective.
Threats
External conditions those are harmful to achieving the objective.
The following factors can be summarized as company's internal strength and weakness factors.
- Company culture
- Company image
- Organizational structure
- Key staff
- Access to natural resources
- Position on the experience curve
- Operational efficiency
- Operational capacity
- Brand awareness
- Market share
- Financial resources
- Exclusive contracts
- Patents and trade secrets
The following factors can be summarized as company's oppportunities and threats factors.
- Customers
- Competitors
- Market trends
- Suppliers
- Partners
- Social changes
- New technology
- Economic environment
- Political and regulatory environment
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