How to make SWOT analysis

Why do a SWOT analysis?

A SWOT analysis is very useful tool, when making the business plan or examining the status of the business or a project.

SWOT refers to strengths, weaknesses, opportunities and threats. A SWOT analysis is a process where the management team or project team identifies the internal and external factors that affects the business’ performance.

The analysis looks into both your own business, as well as your competitors and the environment around your business. You analyze the company’s strengths and weakness from an internal point of view, while the opportunities and threats are external factors. At the end you make a conclusion taking all four aspects into consideration.

A good analysis can help your business or project to become effective. Good advice is to do a SWOT on every new project that touches the business strategy and do a general follow up every 6-12 months, to track development and react to risk and new opportunity.

How to do a SWOT analysis?

Start with a brainstorming session with key stakeholders of your business or project. The group of stakeholders should have a discussion about the four topics and ask the questions listed below:

Strengths (internal)

• What is your business doing better, than anyone else?
• Which key advantages does your business have?
• How do people in the markets see your strengths?
• Which elements mean, you are getting the sale?
• What is unique about your business?
• What advantages does your business have compared to competitors?

Weakness (internal)

• What do customers / market complain about?
• What do customers / market see as your weakness?
• What makes your business loose a sale
• What should you avoid?
• What can be improved?

Opportunities (external)

• Which trends are you aware of?
• Which opportunities do you see?
• Are you utilizing all your strengths?
• Is there a particular area of business, which has been overlooked?
• Any change in how you can utilize technology?
• Any changes in the political system?
• Any changes in the social environment?
• Any local events to participate in?

Keep in mind the often do opportunities appear when the business environment / playing field changes. Just like the financial crisis.

Threats (external)

• Which challenges do you face?
• Any changes to your product or service?
• What are your competitors up to?
• Is the use of technology threatening your business?
• Can any weakness hurt or threaten your business?
• Any trends or changes in political / social environment?

Conclusion:

Only you can write the conclusion. Consider it as an executive summary. Be short, be accurate and deliver the direction of how to move forward.

Other things to consider:

• Ensure you only accept precise and accurate statements, like avoiding statements like “value for money”.
• During the brainstorm session will many topics appear, filter them and prioritize them.

Strengths:	Weakness:
Opportunities:	Threats: