A SWOT analysis is an objective planning tool used to evaluate a company's competitive position. It is designed to provide a realistic, fact-based, data-driven look at a company's strengths, weaknesses, opportunities, and threats. To keep the analysis accurate, avoid pre-conceived beliefs or gray areas and focus instead on real-life contexts. A SWOT should be used as a guide and not necessarily as a prescription.
The SWOT analysis is typically depicted as a square segmented into four quadrants, each dedicated to a SWOT element. This visual arrangement provides a quick overview of a company’s position.
The following is an example of a SWOT chart:
Remember, the SWOT analysis is meant to be an objective summary tool. Any analysis which lacks good information will result in a biased viewpoint, and may cause you to reach the wrong conclusion.
