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SWOT analysis: Examples and templates

A SWOT analysis helps you identify strengths, weaknesses, opportunities, and threats for a specific project or your overall business plan. It’s used for strategic planning and to stay ahead of market trends. Below, we describe each part of the SWOT framework and show you how to conduct your own.

Whether you’re looking for external opportunities or internal strengths, we’ll walk you through how to perform your own SWOT analysis, with helpful examples along the way.

What is a SWOT analysis?

A SWOT analysis is a technique used to identify strengths, weaknesses, opportunities, and threats for your business or even a specific project. It’s most widely used by organizations—from small businesses and non-profits to large enterprises—but a SWOT analysis can be used for personal purposes as well.

While simple, a SWOT analysis is a powerful tool for helping you identify competitive opportunities for improvement. It helps you improve your team and business while staying ahead of market trends.

What does SWOT stand for?

SWOT is an acronym that stands for:

Opportunities

When analyzed together, the SWOT framework can paint a larger picture of where you are and how to get to the next step. Let’s dive a little deeper into each of these terms and how they can help identify areas of improvement.

Strengths in SWOT refer to internal initiatives that are performing well. Examining these areas helps you understand what’s already working. You can then use the techniques that you know work—your strengths—in other areas that might need additional support, like improving your team’s efficiency .

When looking into the strengths of your organization, ask yourself the following questions:

What do we do well? Or, even better: What do we do best?

What’s unique about our organization?

What does our target audience like about our organization?

Which categories or features beat out our competitors?

Example SWOT strength:

Customer service: Our world-class customer service has an NPS score of 90 as compared to our competitors, who average an NPS score of 70.

Weaknesses in SWOT refer to internal initiatives that are underperforming. It’s a good idea to analyze your strengths before your weaknesses in order to create a baseline for success and failure. Identifying internal weaknesses provides a starting point for improving those projects.

Identify the company’s weaknesses by asking:

Which initiatives are underperforming and why?

What can be improved?

What resources could improve our performance?

How do we rank against our competitors?

Example SWOT weakness:

E-commerce visibility: Our website visibility is low because of a lack of marketing budget , leading to a decrease in mobile app transactions.

Opportunities in SWOT result from your existing strengths and weaknesses, along with any external initiatives that will put you in a stronger competitive position. These could be anything from weaknesses that you’d like to improve or areas that weren’t identified in the first two phases of your analysis.

Since there are multiple ways to come up with opportunities, it’s helpful to consider these questions before getting started:

What resources can we use to improve weaknesses?

Are there market gaps in our services?

What are our business goals for the year?

What do your competitors offer?

Example SWOT opportunities:

Marketing campaign: To improve brand visibility, we’ll run ad campaigns on YouTube, Facebook, and Instagram.

Threats in SWOT are areas with the potential to cause problems. Different from weaknesses, threats are external and ‌out of your control. This can include anything from a global pandemic to a change in the competitive landscape.

Here are a few questions to ask yourself to identify external threats:

What changes in the industry are cause for concern?

What new market trends are on the horizon?

Where are our competitors outperforming us?

Example SWOT threats:

New competitor: With a new e-commerce competitor set to launch within the next month, we could see a decline in customers.

SWOT analysis example

One of the most popular ways to create a SWOT analysis is through a SWOT matrix—a visual representation of strengths, weaknesses, opportunities, and threats. The matrix comprises four separate squares that create one larger square.

A SWOT matrix is great for collecting information and documenting the questions and decision-making process . Not only will it be handy to reference later on, but it’s also great for visualizing any patterns that arise.

Check out the SWOT matrix below for a simple example. As you can see, each of the quadrants lists out the company's strengths, weaknesses, opportunities, and threats.

[Inline illustration] SWOT analysis (Example)

When used correctly and effectively, your matrix can be a great toolkit for evaluating your organization’s strengths and weaknesses.

How to do a SWOT analysis, with examples

A SWOT analysis can be conducted in a variety of ways. Some teams like to meet and throw ideas on a whiteboard, while others prefer the structure of a SWOT matrix. However you choose to make your SWOT analysis, getting creative with your planning process allows new ideas to flow and results in more unique solutions.

There are a few ways to ensure that your SWOT analysis is thorough and done correctly. Let’s take a closer look at some tips to help you get started.

Tip 1: Consider internal factors

Often, strengths and weaknesses stem from internal processes. These tend to be easier to solve since you have more control over the outcome. When you come across internal factors, you can start implementing improvements in a couple of different ways.

Meet with department stakeholders to form a business plan around how to improve your current situation.

Research and implement new tools, such as a project management tool , that can help streamline these processes for you.

Take immediate action on anything that can be changed in 24 hours or less. If you don’t have the capacity, consider delegating these items to others with deadlines.

The way you go about solving internal factors will depend on the type of problem. If it’s more complex, you might need to use a combination of the above or a more thorough problem management process.

Tip 2: Evaluate external factors

External factors stem from processes outside of your control. This includes competitors, market trends, and anything else that’s affecting your organization from the outside in.

External factors are trickier to solve, as you can’t directly control the outcome. What you can do is pivot your own processes in a way that mitigates negative external factors.

You can work to solve these issues by:

Competing with market trends

Forecasting market trends before they happen

Improving adaptability to improve your reaction time

Track competitors using reporting tools that automatically update you as soon as changes occur

While you won’t be able to control an external environment, you can control how your organization reacts to it.

Let’s say, for instance, that you’re looking to compete with a market trend. For example, a competitor introduced a new product to the market that’s outperforming your own. While you can’t take that product away, you can work to launch an even better product or marketing campaign to mitigate any decline in sales.

Tip 3: Hold a brainstorming session

Brainstorming new and innovative ideas can help to spur creativity and inspire action. To host a high impact brainstorming session, you’ll want to:

Invite team members from various departments. That way, ideas from each part of the company are represented.

Be intentional about the number of team members you invite, since too many participants could lead to a lack of focus or participation. The sweet spot for a productive brainstorming session is around 10 teammates.

Use different brainstorming techniques that appeal to different work types.

Set a clear intention for the session.

Tip 4: Get creative

In order to generate creative ideas, you have to first invite them. That means creating fun ways to come up with opportunities. Try randomly selecting anonymous ideas, talking through obviously bad examples, or playing team building games to psych up the team.

Tip 5: Prioritize opportunities

Now, rank the opportunities. This can be done as a team or with a smaller group of leaders. Talk through each idea and rank it on a scale of one through 10. Once you’ve agreed on your top ideas based on team capabilities, competencies, and overall impact, it’s easier to implement them.

Tip 6: Take action

It’s all too easy to feel finished at this stage —but the actual work is just beginning. After your SWOT analysis, you’ll have a list of prioritized opportunities. Now is the time to turn them into strengths. Use a structured system such as a business case , project plan, or implementation plan to outline what needs to get done—and how you plan to do it.

SWOT analysis template

A SWOT analysis template is often presented in a grid format, divided into four quadrants. Each quadrant represents one of the four elements.

Use this free SWOT analysis template to jump-start your team’s strategic planning.

Identify the strengths that contribute to achieving your objectives. These are internal characteristics that give you an advantage. Some examples could be a strong brand reputation, an innovative culture, or an experienced management team.

Next, focus on weaknesses. These are internal factors that could serve as obstacles to achieving your objectives. Common examples might include a lack of financial resources, high operational costs, or outdated technology.

Move on to the opportunities. These are external conditions that could be helpful in achieving your goals. For example, you might be looking at emerging markets, increased demand, or favorable shifts in regulations.

Lastly, let's address threats. These are external conditions that could negatively impact your objectives. Examples include increased competition or potential economic downturns.

Why is a SWOT analysis important?

A SWOT analysis can help you improve processes and plan for growth. While similar to a competitive analysis , it differs because it evaluates both internal and external factors. Analyzing key areas around these opportunities and threats will equip you with the insights needed to set your team up for success.

A SWOT analysis isn’t only useful for organizations. With a personal SWOT analysis, you can examine areas of your life that could benefit from improvement, from your leadership style to your communication skills. These are the benefits of using a SWOT analysis in any scenario.

1. Identifies areas of opportunity

One of the biggest benefits of conducting an analysis is to determine opportunities for growth. It’s a great starting point for startups and teams that know they want to improve but aren’t exactly sure how to get started.

Opportunities can come from many different avenues, like external factors such as diversifying your products for competitive advantage or internal factors like improving your team’s workflow . Either way, capitalizing on opportunities is an excellent way to grow as a team.

2. Identifies areas that could be improved

Identifying weaknesses and threats during a SWOT analysis can pave the way for a better business strategy.

Ultimately, learning from your mistakes is the best way to excel. Once you find areas to streamline, you can work with team members to brainstorm an action plan . This will let you use what you already know works and build on your company’s strengths.

3. Identifies areas that could be at risk

Whether you have a risk register in place or not, it’s always crucial to identify risks before they become a cause for concern. A SWOT analysis can help you stay on top of actionable items that may play a part in your risk decision-making process.

It may be beneficial to pair your SWOT analysis with a PEST analysis, which examines external solutions such as political, economic, social, and technological factors—all of which can help you identify and plan for project risks .

When should you use a SWOT analysis?

You won’t always need an in-depth SWOT analysis. It’s most useful for large, general overviews of situations, scenarios, or your business.

A SWOT analysis is most helpful:

Before you implement a large change—including as part of a larger change management plan

When you launch a new company initiative

If you’d like to identify opportunities for growth and improvement

Any time you want a full overview of your business performance

If you need to identify business performance from different perspectives

SWOT analyses are general for a reason—so they can be applied to almost any scenario, project, or business.

SWOT analysis: Pros and cons

Although SWOT is a useful strategic planning tool for businesses and individuals alike, it does have limitations. Here’s what you can expect.

The simplicity of SWOT analysis makes it a go-to tool for many. Because it is simple, it takes the mystery out of strategic planning and lets people think critically about their situations without feeling overwhelmed.

For instance, a small bakery looking to expand its operations can use SWOT analysis to easily understand its current standing. Identifying strengths like a loyal customer base, weaknesses such as limited seating space, opportunities like a rising trend in artisanal baked goods, and threats from larger chain bakeries nearby can all be accomplished without any specialized knowledge or technical expertise.

Versatility

Its versatile nature allows SWOT analysis to be used across various domains. Whether it’s a business strategizing for the future or an individual planning their career path, SWOT analysis lends itself well.

For example, a tech start-up in the competitive Silicon Valley landscape could employ SWOT to navigate its pathway to profitability. Strengths might include a highly skilled development team; weaknesses could be a lack of brand recognition; opportunities might lie in emerging markets; and threats could include established tech giants.

Meaningful analysis

SWOT excels in identifying external factors that could impact performance. It nudges organizations to look beyond the present and anticipate potential future scenarios.

A retail company, for example, could use SWOT analysis to identify opportunities in e-commerce and threats from changing consumer behavior or new competitors entering the market. By doing so, the company can strategize on how to leverage online platforms to boost sales and counteract threats by enhancing the customer experience or adopting new technologies.

Subjectivity and bias

The subjective nature of SWOT analysis may lead to biases. It relies heavily on individual perceptions, which can sometimes overlook crucial data or misinterpret information, leading to skewed conclusions.

For example, a manufacturing company might undervalue the threat of new entrants in the market due to an overconfidence bias among the management. This subjectivity might lead to a lack of preparation for competitive pricing strategies, ultimately affecting the company's market share.

Lack of prioritization

SWOT analysis lays out issues but falls short on prioritizing them. Organizations might struggle to identify which elements deserve immediate attention and resources.

For instance, a healthcare provider identifying numerous opportunities for expansion into new services may become overwhelmed with the choices. Without a clear way to rank these opportunities, resources could be spread too thinly or given to projects that do not have as much of an impact, leading to less-than-ideal outcomes.

Static analysis

Since SWOT analysis captures a snapshot at a particular moment, it may miss the evolving nature of challenges and opportunities, possibly leading to outdated strategies. An example could be a traditional retail business that performs a SWOT analysis and decides to focus on expanding physical stores, overlooking the growing trend of e-commerce. As online shopping continues to evolve and gain popularity, the static analysis might lead to investment in areas with diminishing returns while missing out on the booming e-commerce market trend.

SWOT analysis FAQ

What are the five elements of swot analysis.

Traditionally, SWOT stands for its four main elements: strengths, weaknesses, opportunities, and threats. However, a fifth essential element often overlooked is "actionable strategies." Originally developed by Albert Humphrey, SWOT is more than just a list—it's a planning tool designed to generate actionable strategies for making informed business decisions. This fifth element serves to tie the other four together, enabling departments like human resources and marketing to turn analysis into actionable plans.

What should a SWOT analysis include?

A comprehensive SWOT analysis should focus on the internal and external factors that affect your organization. Internally, consider your strong brand and product line as your strengths, and maybe your supply chain weaknesses. Externally, you'll want to look at market share, partnerships, and new technologies that could either pose opportunities or threats. You should also account for demographics, as it helps in market targeting and segmentation.

How do you write a good SWOT analysis?

Writing an effective SWOT analysis begins with research. Start by identifying your strengths, like a strong brand, and your weaknesses, like a small human resources department. Following that, look outward to find opportunities, possibly in technological advancement, and threats, like fluctuations in market share. Many businesses find it helpful to use a free SWOT analysis template to structure this information. A good SWOT analysis doesn't just list these elements; it integrates them to provide a clear roadmap for making business decisions.

What are four examples of threats in SWOT analysis?

New technologies: Rapid technological advancement can make your product or service obsolete.

Supply chain disruptions: Whether due to natural disasters or geopolitical tensions, an unstable supply chain can seriously jeopardize your operations.

Emerging competitors: New players entering the market can erode your market share and offer alternative solutions to your customer base.

Regulatory changes: New laws or regulations can add costs and complexity to your business, affecting your competitiveness.

How do you use a SWOT analysis?

Once you've completed a SWOT analysis, use the results as a decision-making aid. It can help prioritize actions, develop strategic plans that play to your strengths, improve weaknesses, seize opportunities, and counteract threats. It’s a useful tool for setting objectives and creating a roadmap for achieving them.

Plan for growth with a SWOT analysis

A SWOT analysis can be an effective technique for identifying key strengths, weaknesses, opportunities, and threats. Understanding where you are now can be the most impactful way to determine where you want to go next.

Don’t forget, a bit of creativity and collaboration can go a long way. Encourage your team to think outside of the box with 100+ team motivational quotes .

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203+ SWOT Threats Examples (Definition + Use-cases)

Understanding the threats you might face in personal, professional, or business settings can help you prepare better and mitigate risks.

In SWOT analysis, the term "Threats" refers to external factors that could harm you or your project. Here are some common examples:

Competitive Moat
Technological Disruption
Regulatory Changes
Supply Chain Disruptions
Cybersecurity Damage

Threats might be lurking around the corner or be visible on the horizon, but either way, it's crucial to identify them. By doing so, you can develop strategies to lessen their impact or even turn them into opportunities.

When it comes to a SWOT analysis , there are 3 other areas to focus on, and you can read our articles for examples of them:

Opportunities

Why Threats Matter

Understanding the threats that could impact you or your business isn't just about being cautious—it's about being smart. Ignoring potential threats is like ignoring a storm cloud on the horizon; you might get caught in a downpour without an umbrella!

By taking the time to identify what could go wrong, you give yourself the chance to plan and prepare. That way, if something bad does happen, it won't hit as hard. It's all about building a "safety net" for yourself and your projects.

Identifying Threats

Spotting threats can be a bit like detective work. You've got to look at the big picture, gather clues, and connect the dots. This means keeping an eye on what's happening around you.

Are there new laws that could affect your business? Is someone offering a similar product for a lower price? You'll need to think about these questions and more. The good news is, once you know what you're up against, you can start taking steps to protect yourself.

It can be really helpful to hire professionals who can help you identify and deal with threats, such as corporate lawyers .

There are also lots of risk assessment teams and tools that can help you identify threats specific to your business or personal life.

Therapists are also a good tool, whether for dealing with personal or professional threats. You could even consider hiring a therapist or coach for your employees.

How to Use This List

Our list of threats is long, but don't feel overwhelmed. You don't have to worry about every single item. Instead, look for the threats that really speak to your situation.

Maybe you're starting a new job, or maybe you've got a business that's been around for years. Either way, this list can serve as a helpful tool. You can use it to brainstorm, to prepare for meetings, or just to get your thoughts in order. It's a resource that's here to help you succeed.

Before we dive in, please note that the examples listed here are meant to guide and inspire. Your personal or business situation will have its own unique set of threats that may or may not be covered in this list. Always consult with a professional for a tailored assessment.

Personal Threats Examples

Economic Downturn : If the economy is doing poorly, jobs can become scarce and living costs can go up, which can be a big threat to your financial security.

New Family Responsibilities : Suddenly having to care for a family member can be an emotional and financial burden.

Changes in Health Insurance : Losing your health insurance can make medical costs unmanageable, threatening your financial and physical well-being.

Increasing Competition in Your Field : More people getting the same qualifications as you can make job hunting a lot harder.

Changes in Technology : If you're not up-to-date with the latest tech, you could fall behind in your job or studies.

Personal Illness or Injury : Getting sick or hurt can make it hard to work, study, or take care of your family.

New Company Policies : Changes at work, like new rules or less flexible hours, can make your job less enjoyable or even jeopardize it.

Social Media Pitfalls : A poorly thought-out post can have serious repercussions for your personal and professional life.

Identity Theft : If someone steals your personal information, they can damage your credit and make life really complicated.

Loss of a Key Relationship : A breakup or the loss of a friendship can be emotionally devastating and affect other areas of your life.

Lack of Work-Life Balance : Too much work can make you stressed and less productive in both your personal and professional life.

Climate Change : Natural disasters like floods or hurricanes can disrupt your life and livelihood.

Increased Cost of Living : Rising prices for things like food and rent can put a dent in your budget.

Changing Neighborhood : If your area becomes less safe or less convenient, your quality of life can suffer.

Overcommitment : Taking on too many responsibilities can lead to burnout and affect your health.

Traffic and Commute : Longer travel times can eat into your personal and family time, adding stress to your day.

Job Automation : Robots and software doing tasks that people used to do can threaten your job security.

Age Discrimination : As you get older, finding a job can become more difficult in some fields.

Relocation Risks : Moving to a new place for a job or other reason can come with unexpected downsides like cost or culture shock.

New Laws or Regulations : Laws can change in a way that affects you personally, like stricter parking rules or increased taxes.

Rising Educational Costs : Higher tuition fees can make it harder to get the qualifications you need.

Pet Health : Sudden illnesses in pets can result in emotional stress and unexpected expenses.

Failing Public Services : Cuts to public services like public transportation or healthcare can make life harder.

Increased Competition in School : More students competing for top grades can make getting into college more challenging.

Public Opinion : A change in public attitude towards your job or hobby could impact your social standing or opportunities.

Economic Dependence : Relying on one source of income or support can be risky if that source becomes unreliable.

Increase in Crime Rates : A rise in local crime can make your environment less safe and decrease property values.

Lack of Recreational Activities : Fewer places to relax or exercise can impact your quality of life and health.

Social Isolation : Lack of social interaction can lead to emotional and mental health issues.

Environmental Pollution : Poor air or water quality in your area can have long-term health effects.

Family Conflict : Ongoing disagreements within the family can be a significant emotional drain.

Declining Industry : Working in a field that is getting smaller can threaten your long-term career prospects.

Political Instability : Changes in political leadership or laws can create an uncertain future.

Cyberbullying : Online harassment can have severe emotional impacts.

Educational Policy Changes : New education policies can affect the quality of education in schools and colleges.

Online Privacy Concerns : Data breaches or hacking can expose personal information.

Lack of Job Security : Contract or part-time work can make your financial situation unstable.

Price Fluctuations : The cost of essential goods like food and gas going up and down can make budgeting difficult.

Mental Health Stigma : Societal misunderstandings about mental health can limit support and opportunities.

Lack of Career Advancement : Stagnation at work can demotivate you and limit financial growth.

Global Pandemic : Diseases can disrupt travel, work, and everyday life.

Substance Abuse : Addiction to drugs or alcohol can severely impact all areas of your life.

Declining Social Circles : As you age, you might find your social circle getting smaller, which can lead to loneliness.

Inflation : General price rises can erode your purchasing power, making your income less effective.

Limited Access to Quality Healthcare : Not having good healthcare options can be a major threat to your well-being.

Poor Time Management : Not managing your time well can put stress on both work and personal relationships.

Lack of Emotional Support : Not having a strong support network can make handling life's challenges more difficult.

Disruptive Neighbors : Noisy or nosy neighbors can affect your quality of home life.

Lack of Skill Diversification : Being specialized in a declining field can limit your job prospects.

High Stress Levels : Ongoing high stress can lead to physical and mental health problems.

Digital Distractions : Constant notifications and social media can decrease your productivity and focus.

Relationship Strain : Issues in personal relationships can be emotionally draining and distracting.

Erosion of Work-Life Balance : More demands from your job can intrude on personal and family time.

Consumer Debt : Having too much debt can lead to financial instability and stress.

Health Misinformation : False health information online can lead to poor health decisions.

Peer Pressure : Trying to fit in with friends or colleagues can lead to unwise choices.

Internet Scams : Online fraud can result in financial loss and security risks.

Decline in Physical Health : Lack of exercise and poor diet can lead to health issues.

Seasonal Affective Disorder : Shorter days in winter can affect your mood and energy levels.

Lack of Savings for Retirement : Failing to save for retirement can put your future financial stability at risk.

Unforeseen Expenses : Things like car repairs or medical bills can disrupt your financial planning.

Food Insecurity : Not having consistent access to enough food can result in physical and mental health problems.

Changing Consumer Preferences : Your skills or services might become less popular over time.

Rising Utility Costs : Increases in the cost of electricity, gas, and water can strain your budget.

Cutbacks in Social Security : Future reductions in social benefits can affect your long-term planning.

Ineffective Leadership at Work : Poor management can create a stressful work environment.

Social Injustice : Discrimination based on race, gender, or other factors can limit your opportunities.

Homelessness Risk : Lack of stable income and rising rent can lead to the risk of losing your home.

Neglect of Personal Development : Failing to continue learning and growing can stunt your career and personal life.

Limited Access to Clean Water : Lack of clean water can affect your health and quality of life.

Terrorist Threats : The risk of terrorist attacks can create a sense of insecurity and tension.

Local Economic Downturn : A struggling local economy can lead to job losses and lower income.

Spread of Misinformation : False information can harm your understanding of important issues.

Lack of Reliable Transportation : Without dependable transportation, getting to work or appointments can become problematic.

Property Damage Risks : Natural disasters or accidents can damage your property and cause financial strain.

Childcare Issues : Lack of reliable and affordable childcare can affect your ability to work.

Dependence on Non-Renewable Resources : Relying on resources like fossil fuels can lead to future shortages and price increases.

Poor Local School Quality : Low-quality education in your area can limit opportunities for your children.

Language Barriers : Not speaking the primary language in your area can hinder job opportunities and social interactions.

Loss of Cultural Heritage : Changes in your community could lead to a loss of cultural practices and history.

Divorce or Separation : The end of a long-term relationship can lead to emotional and financial challenges.

Negligence in Self-Care : Failing to take care of yourself can lead to long-term health issues.

Lack of Community Engagement : Apathy towards local issues can lead to a decline in community quality.

Disconnection from Nature : Lack of time outdoors can affect mental and physical well-being.

Polarization in Society : Increasing divisions in society can lead to conflicts and a lack of cooperation.

Workplace Harassment : Experiencing or witnessing harassment at work can create a toxic environment.

Parental Responsibilities : Balancing work and parenting can be exhausting and stressful.

Ethical Dilemmas : Encountering situations that challenge your ethics can cause stress and uncertainty.

Skill Obsolescence : As technology advances, your current skill set might become outdated.

Unplanned Pregnancy : An unexpected pregnancy can bring both emotional and financial challenges.

Negative Feedback Loop : A cycle of negative thoughts can worsen mental health conditions.

Limited Networking : Lack of professional connections can hinder career growth.

Overreliance on Technology : Excessive use of gadgets can lead to problems like poor posture and eye strain.

Impulse Spending : Uncontrolled spending can lead to financial instability.

Failure to Adapt : Resistance to change can make it hard to adjust to new situations.

Disability or Chronic Illness : A debilitating condition can limit your mobility and quality of life.

Vulnerability to Scams : Lack of awareness about scams can make you an easy target for fraud.

Reliance on Imported Goods : If you rely heavily on imported items, you're vulnerable to trade disruptions.

Excessive Screen Time : Spending too much time in front of screens can lead to health problems like poor sleep.

Climate Change Effects : Rising temperatures and extreme weather can pose a threat to your living conditions.

Business Threats Examples

Market Saturation : When too many companies offer the same product, your growth opportunities may become limited.

Cybersecurity Risks : Vulnerability to hacking and data breaches can jeopardize your business.

Supply Chain Disruptions : Delays or interruptions in your supply chain can halt production and decrease profitability.

Increasing Competition : New businesses entering the market can threaten your customer base.

Unfavorable Legislation : New laws or regulations can negatively impact your business operations.

Rising Labor Costs : Increased wages and benefits can reduce your profit margins.

Outdated Technology : Failing to keep up with technological advances can make your business less competitive.

Reputation Damage : Negative reviews or bad press can deter customers and lower sales.

Global Economic Downturn : A recession can lead to decreased consumer spending and increased business risk.

Seasonal Fluctuations : Some businesses face challenges during off-season periods when demand is low.

Currency Fluctuations : If you do business internationally, changes in currency value can affect profits.

Lack of Diversification : Reliance on a single product or market can make you vulnerable to changes.

Climate Change : Environmental factors like extreme weather can disrupt operations or increase costs.

High Employee Turnover : Losing skilled workers frequently can affect productivity and incur training costs.

Poor Management : Ineffective leadership can lead to low employee morale and decreased productivity.

Consumer Trends : Shifts in consumer preferences can make your product or service less appealing.

Lack of Innovation : Failure to innovate can make your business stagnant and less competitive.

Litigation Risks : Lawsuits or legal challenges can result in financial loss and reputational damage.

Quality Control Issues : Poor product quality can lead to recalls and damage your brand reputation.

Resource Scarcity : Limited access to essential resources can inhibit your ability to produce or deliver services.

High Debt Levels : Excessive debt can limit your ability to invest in growth opportunities.

Rising Utility Costs : Increases in the cost of electricity, gas, and water can affect your operating expenses.

Aging Workforce : An older workforce may lack the skills needed for modern business challenges.

Tax Increases : Higher taxes can reduce profitability and limit growth potential.

Political Instability : Uncertainty in government can create an unpredictable business environment.

Geopolitical Conflicts : Wars or disputes can disrupt supply chains and create market instability.

Counterfeit Products : Fake or copied products can erode your market share and damage your brand.

Ethical or Social Backlash : Controversial business practices can lead to boycotts or public shaming.

E-commerce Competition : Online retailers can offer lower prices and a larger selection, luring away customers.

Digital Disruption : Automation and digital technologies can make traditional business models obsolete.

Cultural Differences : Expanding into markets with different cultures can present unexpected challenges.

Lack of Intellectual Property Protection : Without patents or copyrights, your ideas are vulnerable to theft.

Regulatory Compliance : Meeting new regulations can require significant time and financial investment.

Inflation : Rising costs of goods and services can eat into profit margins.

Substitute Products : Alternative solutions to your product can reduce demand and market share.

Land and Property Costs : Increasing real estate prices can make expansion more expensive.

Decreasing Population : In areas where the population is declining, potential customers are also decreasing.

Fraud Risk : Internal or external fraudulent activities can lead to significant financial loss.

Social Media Missteps : Poorly executed marketing campaigns can result in negative public reactions.

Disruptive Startups : Innovative new companies can quickly capture market share and disrupt established industries.

Skill Shortages : Lack of access to skilled labor can hinder your company's growth and efficiency.

Environmental Regulations : Stricter environmental laws can increase operational costs.

Customer Loyalty Decline : A drop in customer retention can significantly affect sales and profitability.

Foreign Exchange Risks : Unfavorable exchange rates can impact international business and profitability.

Acquisition Risks : Potential takeover by a competitor or a larger company can threaten your business autonomy.

Data Loss : Accidental deletion or corruption of data can severely impact business operations.

Low Market Demand : A downturn in market demand for your product or service can limit growth.

Shipping and Logistics Issues : Disruptions in shipping can lead to delays and customer dissatisfaction.

Interest Rate Fluctuations : Changes in interest rates can affect your ability to pay off debts or take out loans.

Health and Safety Concerns : Workplace accidents can result in lawsuits and harm your reputation.

Cannibalization : Introducing a new product that takes sales away from an existing product can hurt overall profits.

Retailer Dependence : Relying heavily on a few retailers can make you vulnerable to their business decisions.

Lack of Quality Leads : Inadequate lead generation can make it tough to acquire new customers.

Over-dependence on One Client : Losing a major client can significantly impact revenue.

Dated Business Model : Resistance to update an old business model can cause you to fall behind.

Pricing Wars : Intense competition can force you into a pricing war, reducing profit margins.

Outsourcing Risks : Relying on third-party services can compromise quality and timelines.

Low Online Traffic : Poor online visibility can mean fewer sales and lower customer engagement.

Consumer Privacy Concerns : Failing to protect consumer data can result in loss of trust and legal troubles.

Barriers to Entry in New Markets : High costs or regulations can prevent expansion into new geographical or market segments.

Short Product Lifecycle : Fast-paced industry changes can make your products obsolete quickly.

Underperforming Products : Products that are not meeting sales expectations can drag down overall revenue.

Stagnant Market Growth : Operating in a market that is not growing can limit your potential for expansion.

Budget Overruns : Exceeding the allocated budget on projects can result in financial stress.

Late Payments from Customers : Delayed receivables can create cash flow issues.

Loss of Key Partnerships : Ending relationships with key suppliers or partners can disrupt operations.

Patent Expiry : Expiring patents can open the door for competitors to create similar products.

Adverse Media Coverage : Negative media attention can harm your reputation and customer trust.

Government Tariffs : New tariffs on imported goods can increase your costs.

Public Transportation Strikes : Strikes can disrupt the commute for your employees, affecting productivity.

Local Unemployment Rates : High unemployment can affect consumer spending in your business area.

Decreased Market Visibility : Loss of prominent retail or online placement can result in decreased sales.

Social and Political Movements : Public sentiment against your industry can result in decreased sales.

Rising Insurance Costs : Increased costs for liability or health insurance can impact profitability.

Technological Unreliability : Frequent downtimes or glitches in your technology can disrupt your operations.

Negative Word of Mouth : Dissatisfied customers spreading negative opinions can harm your brand.

Unstable Political Climate : Political uncertainty can result in fluctuating market conditions.

Limited Access to Capital : Difficulty in securing loans or investment can stunt your growth.

Cultural Insensitivity : Failure to respect diverse cultures can offend customers and employees, leading to a damaged reputation.

Security Concerns : Inadequate security measures can result in theft or vandalism.

Lack of Adaptability : Failure to adapt to market changes can result in lost opportunities and revenue.

Complex Regulatory Environment : Operating in markets with complex regulations can make compliance difficult and costly.

Lack of Transparency : Not being transparent can lead to mistrust from customers and stakeholders.

Energy Price Fluctuation : Rising energy costs can increase operational expenses.

Loss of Talent to Competitors : Your best employees may be lured away by better offers from competitors.

Subpar Customer Service : Poor customer service can lead to a loss of customer loyalty and negative reviews.

Volatile Stock Market : Stock market fluctuations can affect your business valuation and ability to raise funds.

Dependency on Non-renewable Resources : Prices and availability of non-renewable resources can impact your business.

Unplanned Downtime : Unexpected operational stoppages can lead to delayed deliveries and decreased productivity.

Generational Shifts : Changing demographics may result in shifting customer needs and expectations.

Ineffective Marketing Strategies : Poorly executed marketing can result in wasted resources and low ROI.

Internal Conflicts : Lack of cohesion among team members can affect productivity and morale.

Lack of R&D Investment : Without investing in research and development, you may fall behind competitors.

Stringent Labor Laws : Tight labor laws can restrict your flexibility in workforce management.

Environmental Disasters : Natural disasters like floods or earthquakes can halt business operations.

Poor Cash Flow Management : Inability to manage cash flow effectively can result in operational difficulties.

Economic Protectionism : Policies favoring domestic companies can limit your competitiveness in international markets.

Ineffective Crisis Management : Poorly managed crises can have long-lasting impacts on reputation and profitability.

Increased Cost of Borrowing : Credit market changes can increase your borrowing costs.

Unpredictable Energy Supplies : Energy supply instability can disrupt your manufacturing and distribution.

Brexit or Other Exit Scenarios : Withdrawal from economic unions can affect your international business.

Intellectual Property Infringement : Others using your copyrighted or patented materials can affect your market share.

Social Inflation : Rising costs due to social trends, like higher jury awards in lawsuits, can affect finances.

Rising Competition in Online Space : More companies moving online can saturate the market and reduce your online visibility.

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SWOT Analysis: How To Do One [With Template & Examples]

Updated: August 02, 2024

Published: August 01, 2024

“ Our business is absolutely flawless and we have nothing to improve upon ” — said no business owner ever. Instead, we business owners often think of all the ways we could potentially grow our businesses and guard against threats.

man conducting swot analysis for his business

I often hear things like:

“Why are my customers not increasing?”

“If only there was a way to find out how to establish my business.”

“My competitors are doing so well, what am I doing wrong?”

The solution lies in one word: SWOT analysis. Well that’s two words, but you get my drift.

I recently conducted a SWOT analysis for my law firm marketing business and it changed everything. In this post, I’ll share my findings.

In this article:

What is a SWOT analysis?

Importance of a swot analysis, parts of a swot analysis, external and internal factors of a swot analysis, how do you write a good swot analysis.

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SWOT Analysis Examples

How to act on a swot analysis, 6 swot analysis tips from real professionals, when to use a swot analysis.

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A SWOT analysis is a strategic planning technique that puts your business in perspective using the following lenses: Strengths, Weaknesses, Opportunities, and Threats. Using a SWOT analysis helps you identify ways your business can improve and maximize opportunities, while simultaneously determining negative factors that might hinder your chances of success.

While it may seem simple on the surface, a SWOT analysis allows you to make unbiased evaluations on:

Your business or brand.
Market positioning.
A new project or initiative.
A specific campaign or channel.

Practically anything that requires strategic planning, internal or external, can have the SWOT framework applied to it, helping you avoid unnecessary errors down the road from lack of insight.

You may have noticed by now that SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The framework seems simple enough that you’d be tempted to forgo using it at all, relying instead on your intuition to take these things into account.

As a small business owner, I was tempted to forgo using it, thinking I knew everything about my business anyway. I was wrong. Doing a SWOT analysis is important. Here’s why.

1. SWOT gives you the chance to worry and to dream.

A SWOT analysis is an important step in your strategic process because it gives you the opportunity to explore both the potential risks and the exciting possibilities that lie ahead. You’re giving yourself the space to dream, evaluate, and worry before taking action.

Your insights then turn into assets as you create the roadmap for your initiative.

For instance, making a SWOT analysis for my business allowed me to consider the weaknesses and threats that my business might face in the future, which in turn led me to address any concerns or challenges and strategize on how to mitigate those risks.

At the same time, I was able to identify strengths and opportunities which helped inspire innovative ideas and helped me dream big. Both are equally important.

2. SWOT forces you to define your variables.

Instead of diving head first into planning and execution, I had to first take inventory of all my assets and roadblocks. This process helped me develop strategies that leverage my strengths and opportunities while addressing and mitigating the impact of weaknesses and threats.

As a result, I gained a comprehensive understanding of my current situation and created a more specific and effective roadmap. Plus, a SWOT analysis is inherently proactive. This means I was better equipped to make informed decisions, allocate resources effectively, and set realistic goals.

3. SWOT allows you to account for mitigating factors.

As I continued to identify weaknesses and threats, I was better able to account for them in my roadmap, thereby improving my chances of success.

Also, accounting for mitigating factors allows me to allocate my resources wisely and make informed decisions that lead to sustainable growth. Using the SWOT analysis as a guide, I can confidently face challenges and seize opportunities.

4. SWOT helps you keep a written record.

As my organization grows and changes, I’ll be able to strike things off my old SWOTs and make additions. With this I can look back at where I came from and look ahead at what’s to come.

In other words, SWOT analyses serve as a tangible history of your progress and provide a reference point for future decision-making. With each update, your SWOT analysis becomes a living document that guides your strategic thinking and helps you stay agile and adaptable in an ever-changing business landscape.

By maintaining this written record, you foster a culture of continuous improvement and empower your team to make data-driven decisions and stay aligned with your long-term vision.

Conducting a SWOT analysis will help you strategize effectively, unlock valuable insights, and make informed decisions. But what exactly does a SWOT analysis include?

Let’s explore each component: Strengths, Weaknesses, Opportunities, and Threats.

SWOT strengths are the unique advantages and internal capabilities that give your company a competitive edge in the market. A strong brand reputation, innovative products or services, or exceptional customer service are just a few examples.

I have discovered that by identifying and capitalizing on your strengths, you can build a solid foundation for growth. You can also use those strengths in other areas that might need additional support, for instance, increasing customer satisfaction .

When asked how conducting a SWOT analysis on his business helped him, Rahul Vij , managing director of WebSpero Solutions replied that the analysis identified “a key strength in our customer service, which we then promoted more heavily in our marketing campaigns, resulting in a 20% increase in customer satisfaction scores.”

When I was looking into the strengths of my own business, here are some questions that I asked myself:

How satisfied are our current clients with our services?
What is our reputation within the industry?
What unique skills or expertise does the team possess?
Do we have any advantages over our competitors?

swot analysis example questions to ask about strengths

– Zeeshan Akhtar , head of marketing at Mailmodo

“It's easy to fall into a groupthink because usually, SWOT analysis is conducted by management. What we did differently in this case, given the issue we wanted to tackle, was involve an external consultant as well as internal employees to get more diverse perspectives and creative solutions.”

– Zach Dannett , cofounder at Tumble

“ During a SWOT analysis, delving deep into competitors' operations to uncover their vulnerabilities can be invaluable. For instance, discovering a key competitor struggling with customer service inefficiencies through reviews and market feedback can highlight an opportunity for differentiation.”

– Harrison Tang , CEO of Spokeo

“Set priorities and focus on the most impactful areas first. Allocate resources strategically, prioritizing initiatives that promise the greatest returns.”

Arham Khan , CEO of Pixated

“ In terms of leveraging the results, businesses need to be proactive. Don't just see it as a one-time report - use it as a roadmap. Whether reinforcing strengths, addressing weaknesses or pursuing opportunities, SWOT should influence strategic planning and product roadmaps. Revisit it annually too, as situations evolve. ”

– Kelly Indah , editor-in-chief at Increditools

Ultimately, a SWOT analysis can measure and tackle both big and small challenges, from deciding whether or not to launch a new product to refining your social media strategy.

When conducting your own SWOT analysis, you may face problems like data overload, differing opinions, and actionability. I certainly did. However in my experience, these problems can be solved by:

Focusing on the most relevant information and filtering out the noise.
Facilitating discussions to reach an agreement or using a neutral moderator.
Ensuring each point is specific and actionable, providing clear direction for your strategies.

I will conclude this piece by saying don‘t underestimate the power of taking a step back from time to time to assess where you’ve been, where you‘re at, and where you’re going.

I firmly believe that regularly conducting a SWOT analysis is critical for any entrepreneur looking to grow.

Editor's note: This post was originally published in May 2018 and has been updated for comprehensiveness.

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How to Write a SWOT Analysis for a Business Plan

September 4, 2024
Business Plan , How to Write

Navigating the complexities of business requires a clear understanding of your strategic position, and a SWOT analysis is an essential tool to help you achieve this clarity. It’s a straightforward method that breaks down into Strengths, Weaknesses, Opportunities, and Threats, providing a snapshot of where your business stands and guiding your future strategic moves.

With this guide, you’ll learn how to leverage your advantages, address challenges, seize new opportunities, and guard against potential threats. Let’s dive into the process together and set a strong foundation for your business’s strategic planning. Let’s dive in!

What is a SWOT Analysis?

A SWOT analysis is a strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. This method helps organizations in assessing both internal and external factors that could impact their objectives.

Strengths : Positive attributes internal to the organization and within its control. Strengths are resources and capabilities that can be used as a basis for developing a competitive advantage.
Weaknesses : Factors that are within an organization’s control but detract from its ability to attain the desired goal. These are areas the business needs to improve to remain competitive.
Opportunities : External chances to improve performance in the environment. Opportunities reflect the potential you can leverage to grow your business or project.
Threats : External challenges to the business’s performance or project’s success. Threats might stem from various sources, such as economic downturns, increased competition, or changes in regulatory landscapes.

Why Use a SWOT Analysis?

We use a SWOT analysis for several important reasons in business and strategic planning:

Strategic Overview : It provides a concise and comprehensive overview of the current strategic position of the business or project. By examining internal and external factors, stakeholders can get a clear picture of their situation.
Decision Making : SWOT analysis aids in decision-making by highlighting the strengths to leverage, weaknesses to address, opportunities to pursue, and threats to mitigate. It helps in prioritizing actions based on the analysis.
Opportunity Identification : SWOT analysis is instrumental in identifying new opportunities for growth and expansion. Opportunities might come from market trends , economic shifts, or changes in technology.
Risk Management : By identifying threats, organizations can develop strategies to address or mitigate these risks before they become significant issues. It’s a proactive approach to managing potential external challenges.
Resource Allocation : Understanding the organization’s strengths and weaknesses helps in the effective allocation of resources. Resources can be directed to areas where they are needed most or where they will have the highest impact.
Competitive Advantage : It helps businesses identify unique features and capabilities that give them a competitive edge in the market. Recognizing these strengths can guide marketing strategies and business development.

How to Write a SWOT Analysis

Writing a strength in a SWOT analysis involves identifying and articulating the internal attributes and resources of a business or project that contribute to its success and competitive advantage. Here’s how to effectively write a strength in a SWOT analysis:

Identify Internal Positive Attributes : Focus on internal factors that are within the control of the business. These can include resources, skills, or other advantages relative to competitors. Consider areas like strong brand reputation, proprietary technology, skilled workforce, financial resources, strategic location, and efficient processes.
Be Specific and Relevant : General statements like “we have a good team” are less helpful than specific ones like “our team includes industry-recognized experts in X field.” The more precise you are, the more actionable your analysis will be. Ensure that the strengths are directly relevant to achieving the business’s goals and objectives.
Use Quantifiable Data When Possible : Whenever you can, back up your strengths with quantifiable data. For example, “a customer satisfaction rate of 95%” or “a 20% lower production cost than industry average” provides concrete evidence of your strengths.
Compare to Competitors : Strengths are often relative to the competition. Identify areas where your business outperforms competitors or fills a gap in the market. This might involve superior product quality, a unique service model, or a more extensive distribution network.

Example: Instead of simply stating “Experienced management team” as a strength, you could write: “Our management team has over 50 years of combined experience in the tech industry, including a track record of successful product launches and market expansions. This depth of experience provides us with strategic insights and operational expertise that have consistently resulted in market share growth and above-industry-average profitability.”

Writing a weakness in a SWOT analysis involves acknowledging and detailing the internal factors that limit or challenge your business or project’s ability to achieve its goals. Here’s a structured approach to effectively articulate weaknesses in a SWOT analysis:

Identify Internal Limitations : Focus on internal attributes that are within the control of the organization but currently act as disadvantages. Weaknesses might include insufficient resources, lack of expertise, outdated technology, poor location, limited product range, or inefficiencies in processes.
Be Specific and Honest : It’s important to be honest and specific about your organization’s weaknesses. Vague statements won’t help in addressing these issues. For instance, rather than saying “we need to improve our marketing,” specify “our current marketing strategy does not effectively reach our target demographic of 18-25-year-olds on digital platforms.”
Use Internal Comparisons and Feedback : Compare your performance, processes, and resources against your own past performance or industry benchmarks. Utilize customer feedback, employee insights, and performance data to identify areas of weakness.
Keep it Constructive : While it’s crucial to be honest about weaknesses, frame them in a way that focuses on potential for improvement. Consider each weakness as an area for development and growth.

Example: Instead of a broad statement like “Inadequate online presence,” a more effective description would be: “Our business currently lacks a robust online presence, reflected in our outdated website and minimal engagement on key social media platforms. This limits our ability to attract younger demographics who predominantly discover and interact with brands online. Improving our online visibility and engagement could enhance brand awareness and customer acquisition.”

Opportunities

Writing opportunities in a SWOT analysis involves identifying and articulating external factors that your business or project could exploit to its advantage. Opportunities are elements in the environment that, if leveraged effectively, could provide a pathway for growth, improvement, or competitive advantage. Here’s how to systematically approach writing opportunities in your SWOT analysis:

Spot External Trends : Focus on the trends and changes outside your organization that could be beneficial. These might include technological advancements, shifts in consumer behavior, market gaps, regulatory changes, or economic trends.
Be Relevant and Actionable : Ensure that the opportunities you identify are relevant to your business and actionable. They should align with your business’s strengths and capabilities, allowing you to take practical steps toward capitalizing on them.
Use Market Research : Base your identification of opportunities on solid market research. Understand your target market , industry trends, and the competitive landscape to pinpoint where the real opportunities lie.
Detail Potential Benefits : Clearly articulate how each opportunity could benefit your business. Whether it’s entering a new market, launching a new product line, or adopting new technology, explain the potential impact on your business growth and success.

Example: Rather than vaguely stating “New market segments,” a more strategic description of an opportunity could be: “With increasing consumer interest in sustainable living, there’s a growing market segment for eco-friendly products. Our business’s strong commitment to sustainability and existing lineup of environmentally friendly products positions us well to capture this emerging market. Expanding our product range to include more items that cater to eco-conscious consumers can tap into this trend, potentially opening up new revenue streams and enhancing our brand’s reputation as a leader in sustainability.”

Writing threats in a SWOT analysis involves identifying external challenges that could pose risks to your business or project’s success. These are factors outside your control that have the potential to harm your operations, financial performance, or strategic positioning. Addressing threats effectively in a SWOT analysis requires a focused approach:

Identify External Challenges : Start by pinpointing the external factors that could negatively impact your business. This can include new competitors entering the market, changes in consumer preferences, technological advancements that render your product less desirable, regulatory changes, or economic downturns.
Be Precise and Realistic : Clearly define each threat in specific terms, avoiding vague descriptions. Being realistic about the level of risk each threat poses is crucial; not every external challenge is a dire threat, but understanding the potential impact is key for strategic planning.
Assess the Impact : For each threat identified, evaluate how it could impact your business. Consider the worst-case scenario and more likely outcomes to gauge the potential severity of the threat. This helps in prioritizing which threats need immediate attention and strategic response.
Use Reliable Sources : Base your identification of threats on solid, reliable information. This might include industry reports, economic forecasts, and news sources that provide insights into market dynamics and external conditions.
Consider Your Weaknesses : Link potential threats to your identified weaknesses. Understanding how external threats could exploit your vulnerabilities offers valuable insights for fortifying your business against these challenges.

Example: Instead of broadly stating “Economic uncertainty,” a more actionable description of a threat would be: “The looming economic downturn poses a significant threat to discretionary consumer spending. Given our business’s reliance on non-essential luxury products, a reduction in consumer spending could directly impact sales. This economic uncertainty requires us to diversify our product offerings and identify more value-oriented options to maintain customer engagement and spending during tighter economic conditions.”

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What Is a SWOT Analysis and How to Do It Right (With Examples)

Posted february 2, 2021 by noah parsons.

A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business strategy, whether you’re building a startup or guiding an existing company.

What is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.

Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.

A SWOT analysis organizes your top strengths, weaknesses, opportunities, and threats into an organized list and is usually presented in a simple two-by-two grid. Go ahead and download our free SWOT analysis template if you just want to dive right in and get started.

Strengths, Weaknesses, Opportunities and Threats analyzed in a 2 by 2 grid to define them for your business.

Why do a SWOT Analysis?

When you take the time to do a SWOT analysis, you’ll be armed with a solid strategy for prioritizing the work that you need to do to grow your business.

You may think that you already know everything that you need to do to succeed, but a SWOT analysis will force you to look at your business in new ways and from new directions. You’ll look at your strengths and weaknesses, and how you can leverage those to take advantage of the opportunities and threats that exist in your market.

Who should do a SWOT Analysis?

For a SWOT analysis to be effective, company founders and leaders need to be deeply involved. This isn’t a task that can be delegated to others.

But, company leadership shouldn’t do the work on their own , either. For best results, you’ll want to gather a group of people who have different perspectives on the company. Select people who can represent different aspects of your company, from sales and customer service to marketing and product development. Everyone should have a seat at the table.

Innovative companies even look outside their own internal ranks when they perform a SWOT analysis and get input from customers to add their unique voice to the mix.

If you’re starting or running a business on your own, you can still do a SWOT analysis. Recruit additional points of view from friends who know a little about your business, your accountant, or even vendors and suppliers. The key is to have different points of view.

Existing businesses can use a SWOT analysis to assess their current situation and determine a strategy to move forward . But, remember that things are constantly changing and you’ll want to reassess your strategy, starting with a new SWOT analysis every six to 12 months.

For startups, a SWOT analysis is part of the business planning process. It’ll help codify a strategy so that you start off on the right foot and know the direction that you plan to go.

How to do a SWOT analysis the right way

As I mentioned above, you want to gather a team of people together to work on a SWOT analysis. You don’t need an all-day retreat to get it done, though. One or two hours should be more than plenty.

1. Gather the right people

Gather people from different parts of your company and make sure that you have representatives from every department and team. You’ll find that different groups within your company will have entirely different perspectives that will be critical to making your SWOT analysis successful.

2. Throw your ideas at the wall

Doing a SWOT analysis is similar to brainstorming meetings, and there are right and wrong ways to run them. I suggest giving everyone a pad of sticky-notes and have everyone quietly generate ideas on their own to start things off. This prevents groupthink and ensures that all voices are heard.

After five to 10 minutes of private brainstorming, put all the sticky-notes up on the wall and group similar ideas together. Allow anyone to add additional notes at this point if someone else’s idea sparks a new thought.

3. Rank the ideas

Once all of the ideas are organized, it’s time to rank the ideas. I like using a voting system where everyone gets five or ten “votes” that they can distribute in any way they like. Sticky dots in different colors are useful for this portion of the exercise.

Based on the voting exercise, you should have a prioritized list of ideas. Of course, the list is now up for discussion and debate, and someone in the room should be able to make the final call on the priority. This is usually the CEO, but it could be delegated to someone else in charge of business strategy.

You’ll want to follow this process of generating ideas for each of the four quadrants of your SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats.

Questions that can help inspire your analysis

Here are a few questions that you can ask your team when you’re building your SWOT analysis. These questions can help explain each section and spark creative thinking.

Strengths are internal, positive attributes of your company. These are things that are within your control.

What business processes are successful?
What assets do you have in your teams? (ie. knowledge, education, network, skills, and reputation)
What physical assets do you have, such as customers, equipment, technology, cash, and patents?
What competitive advantages do you have over your competition?

Weaknesses are negative factors that detract from your strengths. These are things that you might need to improve on to be competitive.

Are there things that your business needs to be competitive?
What business processes need improvement?
Are there tangible assets that your company needs, such as money or equipment?
Are there gaps on your team?
Is your location ideal for your success?

Opportunities

Opportunities are external factors in your business environment that are likely to contribute to your success.

Is your market growing and are there trends that will encourage people to buy more of what you are selling?
Are there upcoming events that your company may be able to take advantage of to grow the business?
Are there upcoming changes to regulations that might impact your company positively?
If your business is up and running, do customers think highly of you?

Threats are external factors that you have no control over. You may want to consider putting in place contingency plans for dealing with them if they occur.

Do you have potential competitors who may enter your market?
Will suppliers always be able to supply the raw materials you need at the prices you need?
Could future developments in technology change how you do business?
Is consumer behavior changing in a way that could negatively impact your business?
Are there market trends that could become a threat?

SWOT Analysis example

To help you get a better sense of what at SWOT example actually looks like, we’re going to look at UPer Crust Pies, a specialty meat and fruit pie cafe in Michigan’s Upper Peninsula. They sell hot, ready-to-go pies and frozen take-home options, as well as an assortment of fresh salads and beverages.

The company is planning to open its first location in downtown Yubetchatown and is very focused on developing a business model that will make it easy to expand quickly and that opens up the possibility of franchising. Here’s what their SWOT analysis might look like:

SWOT analysis for UPer Crust Pies

How to use your SWOT Analysis

With your SWOT analysis complete, you’re ready to convert it into a real strategy. After all, the exercise is about producing a strategy that you can work on during the next few months.

The first step is to look at your strengths and figure out how you can use those strengths to take advantage of your opportunities. Then, look at how your strengths can combat the threats that are in the market. Use this analysis to produce a list of actions that you can take.

With your action list in hand, look at your company calendar and start placing goals (or milestones) on it. What do you want to accomplish in each calendar quarter (or month) moving forward?

You’ll also want to do this by analyzing how external opportunities might help you combat your own, internal weaknesses. Can you also minimize those weaknesses so you can avoid the threats that you identified?

Again, you’ll have an action list that you’ll want to prioritize and schedule.

UPer Crust Pies — Potential strategies for growth

Back to the UPer Crust Pies example: Based on their SWOT analysis, here are a few potential strategies for growth to help you think through how to translate your SWOT into actionable goals.

Investigate investors. UPer Crust Pies might investigate its options for obtaining capital.
Create a marketing plan. Because UPer Crust Pies wants to execute a specific marketing strategy —targeting working families by emphasizing that their dinner option is both healthy and convenient—the company should develop a marketing plan.
Plan a grand opening. A key piece of that marketing plan will be the store’s grand opening, and the promotional strategies necessary to get UPer Crust Pies’ target market in the door.

Next steps with your SWOT Analysis

With your goals and actions in hand, you’ll be a long way toward completing a strategic plan for your business. I like to use the Lean Planning methodology for strategic plans as well as regular business planning. The actions that you generate from your SWOT analysis will fit right into the milestones portion of your Lean Plan and will give you a concrete foundation that you can grow your business from. You can download our free Lean Plan template to help you get started.

If you have additional ideas for how a SWOT analysis can help your business and how it fits into your regular business planning, I’d love to hear from you. You can find me on Twitter @noahparsons .

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SWOT Analysis: Examples and Templates [2024] • Asana
A SWOT analysis helps you identify strengths, weaknesses, opportunities, and threats for a specific project or your overall business plan. It’s used for strategic planning and to stay ahead of market trends. Below, we describe each part of the SWOT framework and show you how to conduct your own.
78 Examples of SWOT Threats - Simplicable
The following are examples of threats that can be used for risk identification and swot analysis. Competition. The potential actions of a competitor are the most common type of threat in a business context. For example, a competitor who copies your new product thus decreasing its unique value on the market. Talent.
203+ SWOT Threats Examples (Definition + Use-cases)
Here are some common examples: Competitive Moat. Technological Disruption. Regulatory Changes. Supply Chain Disruptions. IP Theft. Cybersecurity Damage. Debt Rates. Threats might be lurking around the corner or be visible on the horizon, but either way, it's crucial to identify them.
SWOT Analysis: How To Do One [With Template & Examples]
In a SWOT analysis, threats are external factors that are beyond your control and pose challenges to your business. Factors like increased competition, economic volatility, evolving regulatory landscapes, or even changing market trends are examples of threats.
How to Write a SWOT Analysis for a Business Plan
Threats. Writing threats in a SWOT analysis involves identifying external challenges that could pose risks to your business or project’s success. These are factors outside your control that have the potential to harm your operations, financial performance, or strategic positioning.
What Is a SWOT Analysis and How to Do It Right (With Examples)
A SWOT analysis organizes your top strengths, weaknesses, opportunities, and threats into an organized list and is usually presented in a simple two-by-two grid. Go ahead and download our free SWOT analysis template if you just want to dive right in and get started.

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SWOT analysis: Examples and templates

What is a SWOT analysis?

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Example SWOT strength:

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Tip 1: Consider internal factors

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Tip 4: Get creative

Tip 5: Prioritize opportunities

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1. SWOT gives you the chance to worry and to dream.

2. SWOT forces you to define your variables.

3. SWOT allows you to account for mitigating factors.

4. SWOT helps you keep a written record.

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