swot analysis of case study

SWOT Analysis Case Studies

The SWOT analysis method is the situation analysis method. It was proposed by Weirik, a professor of management at the University of San Francisco in the early 1980s. It is often used in enterprise strategy formulation, competitor analysis and other occasions including analysis of S trengths, W eaknesses, O pportunities, and T hreats. Therefore, the SWOT analysis is a method that comprehensively summarizes the various aspects of the internal and external conditions of the enterprise, and then analyzes the strengths and weaknesses of the organization, opportunities, and threats faced.

Through SWOT analysis, you can help companies to pool resources and actions in their strengths and where there are the most opportunities; and to make their strategy clearer.

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What is a SWOT model

The analysis of strengths and weaknesses focuses on the strength of the company itself and its comparison with competitors, while the opportunity and threat analysis focus on changes in the external environment and possible impact on the company. In the analysis, all internal factors (i.e., strengths and weaknesses) should be grouped together and then evaluated by external forces (opportunities and threats).

Internal Factors (Strengths and weaknesses)

The analysis of strengths and weaknesses (S-W) of internal conditions is an internal method of assessment. The main purpose is to confirm the relationship between expertise and ability of the organization’s internal conditions. The strengths and weaknesses of its internal conditions are internal factors that the organization can control, including financial resources, technical resources, research and development, organizational culture, human resources, product characteristics, and marketing resources.

External Factors (opportunities and threats)

With the rapid development of economy, science and technology and many other aspects, especially the acceleration of globalization and integration of the world economy, the establishment of global information networks and the diversification of consumer demand, the environment in which companies are located are more open and volatile. This change has had a profound effect on almost all businesses. Because of this, environmental analysis has become an increasingly important corporate function.

The Opportunity and Threat (O-T) analysis is a method of evaluating the external environment. The main purpose is to confirm the relationship between the competitions of the industrial environment outside the organization. The opportunities and threats of the external environment are external factors that cannot be controlled by the organization, including factors such as competition, politics, economy, law, society, culture, science and technology, and demographic environment.

What is a Competitive Advantage?

Identifying attractive opportunities in the environment is one thing, and having the necessary competency to succeed in an opportunity is another matter. Each company must regularly check its strengths and weaknesses. When two companies are in the same market or they all can provide products and services to the same customer group, if one of them has higher profitability or profit potential, then we think that the company has a higher competitive advantage than the other. In other words, the so-called competitive advantage refers to a company’s ability to surpass its competitors, and this ability helps to achieve the company’s main goal – profitability. However, it is worth noting that competitive advantage is not necessarily fully reflected in higher profitability, because sometimes companies prefer to increase market share or employees.

Competitive advantage can refer to any superiority in the eyes of a consumer or its product in comparison with its competitors. It can be the breadth of the product line, the size, quality, reliability, suitability, style, and image of the product and services. Although a competitive advantage refers to a company that has a stronger overall advantage than its competitors, it is more meaningful to specify in which area the company has an advantage, because only in this way can we foster strengths and avoid weaknesses, or we can defeat the weakness.

Since the enterprise is a whole and the sources of competitive strengths are very extensive, it is necessary to make a detailed comparison between the company and its competitors from the aspects of the entire value chain when analyzing the strengths and weaknesses. Such as whether the product is novel, whether the manufacturing process is complicated, whether the sales channel is unimpeded, and whether the price is competitive. If an enterprise’s advantage in one aspect or several aspects is the key success factor that a company in the industry should have, then the enterprise’s comprehensive competitive advantage may be stronger. It should be pointed out that to measure whether a company and its products have a competitive advantage can only stand on the perspective of existing potential users, rather than stand on the perspective of the company.

In the process of maintaining a competitive advantage, enterprises must profoundly understand their resources and capabilities and take appropriate measures. Because once a company has a competitive advantage in one aspect, it is bound to attract the attention of competitors. Generally speaking, after a period of hard work, the company establishes a certain competitive advantage; then it is in a situation to maintain this competitive advantage, and competitors start to respond gradually; and if the competitors directly attack the advantage of the company, or Taking other more powerful strategies will weaken this advantage.

The main factors affecting the duration of a company’s competitive strengths are:

How long does it take to establish this advantage?
What are the advantages to be obtained?
How long does it take for a competitor to make a strong reaction?

If the company analyzes these three factors clearly, it will identify itself in establishing and maintaining its competitive advantage.

The company should not correct all its weaknesses, nor should it make use of all its strengths. The main question is whether the company should be limited to the opportunities it already has, or whether it should acquire and develop some strengths to find better opportunities.

SWOT Analysis Strategies

In the process of adaptability analysis, enterprise top management should be based on the determination of internal and external variables, using leverage, inhibitory, vulnerability, and problematic four basic concepts to analyze this model.

Leverage (S + O). Leverage effects arise when internal and external opportunities are consistent and adaptive to one another. In this situation, companies can use their internal strengths to pick up external opportunities and fully integrate opportunities and strengths. However, opportunities are often fleeting, so companies must sharply capture opportunities and seize the opportunity to seek greater development.
Inhibitory (W + O). Inhibiting means impeding, preventing, influencing and controlling. When the opportunities provided by the environment are not suited to the internal resource advantages of the company, or cannot be overlapped with each other, the strengths of the enterprise will no longer be realized. In this situation, companies need to provide and add certain resources to promote the transformation of internal resources and weaknesses into strengths to cater to or adapt to external opportunities.
Vulnerability (S + T). Vulnerability means the decrease or decrease in the degree or intensity of strengths. When environmental conditions pose a threat to the company’s strengths, the strengths cannot be fully exerted and ending up with a fragile situation. In this situation, companies must overcome the threats to take advantage of them.
Problematic (W + T). When the company’s internal weaknesses and corporate external threats meet, companies face severe challenges. If they are not properly handled, they may directly threaten the survival of the company.

Steps for Conducting SWOT Analysis

What is the current strategy?
Confirm the changes in the external environment of the company (Porter 5 force or PEST)
According to the company’s resource mix, confirm the company’s key capabilities and key constraints.
Construct the SWOT Matrix by placing each one of already identified factors. This is an excellent graphic presentation of what is good and what is bad in your company, and what you can expect as an opportunity or threat.
Define SWOT Strategies
Choose what strategy to be adopted and determine the future direction and improvement actions to be taken

Case Study 1: Amazon SWOT Analysis

Amazon Detailed SWOT Analysis

Brand Identity: Amazon is synonymous with online sales services, and Amazon focuses on improving customer satisfaction during the business process.
Pioneer advantage: Amazon is undoubtedly the leader in the online retail industry.
Cost structure: Amazon effectively uses its cost advantage, operates on thin profits, and is still profitable in trading.
Business Development: Amazon continuously improves its service level and provides diversified services.
Low-profit margins: Amazon has a very thin profit margin to maintain its cost-leading strategy. But low-profit margins make companies vulnerable to external shocks and crises, as well as other market changes.
Seasonality: There is a seasonal difference between Amazon’s revenue and business scope, with sales and revenue peaking in the fourth quarter of each year.

Opportunity

Today’s diversification of e-commerce business
Continues to increase awareness of its own branded products and services.
Amazon develops more local websites to participate in the international market. With the international expansion of Amazon, some local businesses have the opportunity to enter the international market.
Promoting the strategic cooperation between Amazon e-commerce and its related affiliated industries will drive positive development of the industry
Loss of profits due to low-profit margins
Patent infringement and other aspects of Amazon’s litigation
E-commerce industry barriers to entry barriers
Cybersecurity issues

Amazon – Recent Development

What do you need to do next after you understand strengths and weaknesses and identify opportunities and threats? Let us take a look at how Amazon has seized the opportunity to successfully transform itself from an e-commerce company into a global leading technology company! When Amazon realized the limitations of the retail industry, it expanded its business boundaries promptly. In addition to cloud computing and smart voice, Amazon has also contacted third-party platforms such as logistics and suppliers, and even invested in the film and television industry, making its business model more diversify. In 2008, Amazon realized that content can attract and extend users’ time on the platform, and began to provide original content on Prime Instant Video, Amazon’s mainstream media video platform, and as part of the Prime membership service. Amazon’s ecology can be described as a rotating flywheel. This flywheel is centered on Prime’s membership system, and new interests have been added to it, gradually creating an all-encompassing ecology. While continuing to attract new users, it has promoted the development of Amazon’s e-commerce and other new businesses, and it will continue to do so.

Case Study 2: Starbucks SWOT Analysis

Strengths – The Starbucks Group has strong profitability, with 2004 revenue exceeding $600 million.
Weaknesses – Starbucks is known for its continuous improvement and innovation. (Translator’s Note: It can be understood as the instability of the product line)
Opportunity – The launch of new products and services, such as the sale of coffee at the show.
Threats – rising costs of coffee and dairy products.

Starbucks Detailed SWOT Analysis

Starbucks Corporation is a very profitable organization, earning more than $600 million in 2004. The company generated revenue of more than $5000 million in the same year.
It is a global coffee brand built a reputation for fine products and services. It has almost 9000 cafe shop in almost 40 countries.
Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.
The organization has strong ethical values and an ethical mission statement as follows, ‘Starbucks is committed to a role of environmental leadership in all facets of our business.’
Starbucks has a reputation for new product development and creativity. However, they can vulnerable to the possibility that their innovation may falter over time.
The organization has a strong presence in the United States of America with more than three-quarters of its cafe shop located in the home market. Some people think they need to invest in different countries (national portfolios) to spread business risks.
The organization is dependent on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

Opportunities

Starbucks is very good at taking advantage of opportunities. E.g. In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers created their music CD.
New products and services that can be retailed in their cafe shop, such as low price products.
The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge.
Co-branding with other manufacturers of food and drink and brand franchising to manufacturers of other goods and services both have potential.
Who knows if the market for coffee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future?
Starbucks is exposed to rises in the cost of coffee and dairy products.
Since its conception in Pike Place Market, Seattle in 1971, Starbucks’ success has to lead to the market entry of many competitors and copycat brands that pose potential threats.

Case Studies 3: Coca-Cola SWOT Analysis Example

Coca-Cola Detailed SWOT Analysis

Most sponsored corporate partners.
Spread across the world in 650 languages and regions.
The market territory spans nearly 200 countries on five continents.
To develop new products, the Coca-Cola Company not only sells cola but also other types of beverages.
Coca-Cola has a long history, so it has a certain status in the market.
There is no certain integration and the common goal of strategic management.
The failure to develop new tastes.
The gradual transfer of customer loyalty.
Loss of market development opportunities.
Sponsor the Olympic Games, use this opportunity to replace their brands, products, and make advertisements, especially The Olympic Games is a worldwide movement that allows the world’s population to recognize this product, expand its market reach, and raise awareness of its products.
Participate in the World Cup, take this world-wide activity to pave the way for your products and gain popularity.
Enter the Chinese rural market.
Enter the American film market.
Pepsi is Coca-Cola’s biggest competitor
The products produced by the company may not be favored by young people today.
Coca-Cola is not considered to be good for health by many people

Formulating Actions for SWOT Analysis

Having completed a SWOT Analysis, so what’s next? Is this enough to conduct the SWOT analysis? You need to know when you are analyzing that at the end of the process you need to expect future directions for next actions. Here is an example of formulating actions for a SWOT analysis:

Disclaimer : This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

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3 Great SWOT Analysis Examples with Real Companies

Whether you want to assess the current position of your business, expand to new markets, or simply develop a new strategy, a SWOT analysis is probably one of the first steps that you will probably make in that direction. And, if it wasn’t on your radar, it should be! Today, we will see some of the best SWOT analysis examples to get you inspired, and help you understand how to do use it effectively for optimum results.

If you are not familiar with the concept, a SWOT analysis is a key technique for assessing some of the most important aspects of your business. In fact, its name comes from the abbreviation of these aspects:

Strengths – internal

These are the strengths of your company compared to other industry competitors. For example, what is it that you do particularly well that others don’t? What is your unique selling proposition , or that service or aspect of your business that differentiates you from the rest?

Do you have a particular competitive advantage over your biggest competitors? This could be technology, an easy access to primary resources, more product personalization, and so on.

Assessing your strengths will help you identify your current position on the market. But also, give you insights on those aspects that represent a clear advantage for your business, so you can leverage them even more.

Weaknesses – internal

Weaknesses, as you might have guessed, are the exact opposite of your organization’s strength. In other words, what do your competitors do better than you ? In what aspect do they have a clear advantage over you?

Is it something that you offer but can improve, or is it a service or an aspect that you lack altogether? For example, your customer service might be unsatisfactory. Or maybe, a competitor has a particular technological feature that your product don’t offer at all.

We will see more of this with practical cases in our section of SWOT Analysis examples.

Opportunities – external

The next aspect of the SWOT analysis is evaluating the positive trends that can open a new opportunity for your business. They usually arise from the outside of your organization , such as industry changes, important movements on the competitors’ landscape, or even a change in the laws applicable to your industry.

Analyzing other factors, such as VUCA – the leadership theory on volatility, uncertainty, complexity and ambiguity, can also reveal new opportunities for your business. To identify them, you will have to look around you from an external perspective.

Can you spot any current trends that could represent an opportunity for your business? For example, the COVID-19 pandemic made companies like Nike and Adidas sell protective masks on their website as a part of their product portfolio. And many new businesses opened to profit from the changes.

Threats – external

Threats are another aspect that is external to your business, but can impact you negatively if you aren’t paying attention. Some examples include supply chain problems, shift in market requirements, changes to current laws and regulations, and so on.

Of course, threats are not always easy to identify. You will have to be proactively looking for them – if they are obvious, it is probably too late. What is the competition doing? How is the current technology evolving?

Are you noticing a change in user behavior regarding the consumption of your particular product? All these questions can help you get a better understanding of the market , and what could potentially be harmful to you.

And now, let’s get right to our SWOT analysis examples!

Disclaimer: These examples are merely my own analysis and interpretation of the information that is publicly available online for these companies. I don´t work at any of these companies, and I do not pretend that I actually know what is going on behind the scenes for any of them. It is just a practical exercise with real companies with the purpose of giving you a clear idea of how to perform a SWOT analysis.

1. The Coca Cola Company

First on our list of SWOT analysis examples is this one from The Coca Cola Company.

swot analysis examples - the coca cola company

SWOT Analysis examples #1: The Coca Cola Company

Let’s discuss it in detail.

Variety of products – one of the biggest strengths that The Coca Cola Company has is their incredible variety of products across different categories. In fact, there are over 500 brands across 200 companies owned by Coca Cola. This not only gives them a higher control on the market, but also more diversified expertise, and less overall competition.
Market share – with a market share of 43% in the soft drink industry, they have a very solid positioning compared to many other competitors. Which also means that it would be extremely difficult to compete with Coca Cola and its almost unlimited resources.
Brand recognition – Coca Cola is one of the most recognized brands in the world, which gives them a huge advantage in front of their competitors. It also means that any new product or brand they invest in will gain visibility almost immediately.
Secret recipes – and last but not least, the company prides itself in having a secret recipe for its flagship product – the Coca Cola. This means that this product will be difficult to replicate by competitors.

Health trends – one of the biggest weaknesses that the company has is its unability to adapt to current health trends. As people are becoming more and more conscious about the unhealthy food and the amount of sugar they are consuming, soft and sugary drinks are slowly getting substituted by healthier options.
Sugar substitute – another health-related weakness for the company involves the difficulty of improving their quality of their product without affecting its famous taste. Coca Cola has been actively looking for healthy sugar substitutes for years with no success.
Current positioning – the current positioning of Coca Cola and its soft drinks is both a blessing and a curse. A blessing, because everyone knows the brand and the product it offers. This kind of brand recognition is something that every company dreams of.

However, this weakness comes with the fact that Coca Cola already has a certain reputation established for itself that is difficult to change. And, considering its sugary drinks with mysterious and secret ingredients, it is certainly not the most positive one.

Opportunities

Health trends – if The Coca Cola Company closely monitors and responds adequately to current health trends, they have a huge opportunitiy to increase their market share. And get an even bigger chunk of the soft drink industry. Especially if they manage to find a healthy substitute for sugar.
Few major competitors – considering the dominance of the brand and only a few major competitors for these particular types of products, Coca Cola can quickly introduce new products with the right Marketing strategy.
Healthier alternatives – although the company is quite dominant when it comes to soft drinks, a lot of other healthier alternatives are arising on the market. Flavoured waters, smoothies, organic drinks, green juices, and so on, are just some of the alternatives that people are starting to prefer as they get more conscious with their health.
Negative press and media coverage – although The Coca Cola Company is known for its brilliant Marketing strategies and its incredible brand recognition, it also gets a lot of negative coverage for being unhealthy. In-depth research, Youtube videos, and even articles from reputable sources such as The Telegraph might cause serious harm in the long run.

Now that we have seen the first one, let´s move on to the next on our list of SWOT Analysis examples!

Next on our collection of SWOT analysis examples is Airbus, the world’s largest airliner manufacturer, and the one who took the most orders in 2019. So, let’s see what are the strengths, weaknesses, opportunities and threats for Airbus:

SWOT Analysis examples #2: Airbus

Market share – with an estimated market share of almost 63% , Airbus is the largest aircraft manufacturer in the world, which gives the company a very strong and powerful position in the industry.
Global network & international presence – with business operations located in Europe, the Americas, Africa & The Middle East, and Asia, Airbus has an incredible international network and presence.
Innovation & technology – additionally, Airbus is putting a huge focus on investing in technology, innovation, and next generation manufacturing, more than any other competitor in the industry.
Eco-efficiency – and last but not least, another strength that Airbus counts with is eco-efficiency. The company has been recognized is a leader in proposing and developing solutions for sustainable aviation.
Delay in delivery – in 2019, Airbus took more orders for aircraft delivery than any other competitor, including its biggest rival Boeing. However, this caused a delay in the delivery of the orders, causing the company to accumulate a lot of backlogs.
Operational inefficiencies – compared to rivals such as Boeing, Airbus has gained a reputation of being somewhat inconsistent when it comes to executing operations. The company is often delaying launches of its new models – for example, the launch of Airbus A380 was delayed by more than one year. This weaknesses is definitely something that Airbus could work on.
High production costs – another key weakness of the company is the fact that it has higher production costs than its main rival Boeing, which leaves them with lower profit margins.

Boom in Travelling – as the travelling industry is booming due to the growing percentage of the middle class, and the lower costs for airplane tickets compared to a decade ago, aircraft manufacturers are receiving more orders than ever. In fact, even in the next few years, the air traffic is anticipated to grow by 4.3% annually. According to Airbus , this alone will require “ 39,200 new passenger and dedicated freighter aircraft over the next 20 years.”
Technological advances – over the last few years, the industry has gone through a lot of innovation processes and technological improvements. This has allowed Airbus to improve its weaknesses and offer better and faster performance. Also, the fact that aircrafts are becoming more and more secure with the new technologies make people want to travel even more.
Competition – the competition in the aerospace industry is practically considered a duopoly. The reason why is because Boeing and Airbus have a combined share of 91% for the whole commercial aircraft market globally. This means that they will not have to fight off small competitors, but also that the competition between both companies is extremely fierce. Which can be a significant threat for Airbus.
Global pandemic – in 2020, the whole world suffered from the COVID-19 pandemic. This alone had a severe impact on the growth of the commercial aircraft market, as people suddenly had to stop travelling. And although this was a temporary decrease that is slowly starting to recover, aircraft manufacturers like Airbus will be affected at least for the next one year.
Potential competitors in key markets – of course, the fact that Airbus and Boeing are currently dominating the global market does not mean that this will last forever. Currently, important markets like China and Russia are also planning to develop their own commercial aircraft. If that happens, it will most probably shrink the market share for Airbus.

Next on our list of SWOT Analysis examples is Zara, one of the biggest clothing companies in the world. Zara is a brand owned by Inditex , among with several others such as Bershka, Stradivarius, and Oysho.

SWOT Analysis examples #3: Zara

Efficient manufacturing & delivery – Zara is one of the most efficient clothing companies in the world when it comes to all operational processes – manufacturing, delivery, supply chain and logistics. Reportedly, the company needs just 1 week to develop a new product and get it to all 2,259 stores it has worldwide, compared to an industry average of 6 months. This gives Zara a huge advantage when it comes to delivering new designs in record time.
Competitive pricing – additionally, the company also offers a very competitive pricing for the variety and amount of products it offers. Its clothing is targeted to a middle class audience, although it´s also true that the pricing is adapted to the characteristics of each market. For example, the prices for Zara in South Korea are 96% higher than the prices in Spain, taking into account the exchange rate of the study.
Strong global presence – As we already mentioned, Zara has over 2,200 stores across 96 countries, positioning itself as a strong international brand with a solid support (Inditex, with over 7,000 stores ).
Fast reaction to new trends – the company is known for imitating high-fashion trends, and it is extremely fast when it comes to spotting and replicating them for its own products.

The company´s strengths is what makes it one of my favourite SWOT analysis examples on this list. They are very well defined, and definitely makes Zara stand out from competitors. However, this does not mean that there are no weaknesses:

Zero policy advertising – the company is famous for its zero policy advertising. This means that, instead of investing in Marketing and Communication actions, they use the money for opening new stores. Although this policy has some awesome benefits, I think that it´s also a very big weakness. The heavy digital advertising done by competitors can completely overshadow Zara in the long run.
Limited product stock – because Zara delivers fashion pieces in record time, they don´t produce as much stock as other companies would. Which is not great news for customers who often love a piece, and it is already out of stock – or simply not in the size they need.
Controversies – additionally, the company is also involved in multiple controversies revolving child labour and paying under minimum wage. As people are getting more and more conscious about these topics, these controversies is doing a lot of harm to the company´s reputation.
High fashion imitation – as we already mentioned, Zara is known to imitate fashion trends. Which means that they are not a trend setter, and they do not offer a lot of unique and creative pieces designed exclusively by them.

Growing demand for high fashion – currently, there is a growing demand for clothing that looks high fashion, but don´t cost thousands of dollars for a single piece. This is a great opportunity for Zara, which does precisely what people want – selling high fashion style for affordable prices.
Fast fashion – as customer behavior is changing, people get bored with everything faster than ever. And this is true for fashion as well – clothes that people would wear for months and years now get substituted with new pieces much more often. Which is another excellent opportunity for Zara as the so-called “fast fashion is on the rise”.
Market growth – according to Statista , the growth of the apparel market is steadily increasing by 5-6% every year, which is great news for clothing companies like Zara.

And now, let´s take a look at the external changes that are imposing a threat for this one of our SWOT analysis examples:

Growing competition – the increasing demand for fashion and apparel also means that competition is growing as well. With huge online providers taking over the Internet such as ASOS, Fashion Nova, Shein and others, Zara´s popularity is becoming threatened by other companies. Especially considering the fact that these providers actually offer products from multiple brands at the same place.
Increasing costs – another tendency that could impose a significant threat for Zara are the increasing costs for production and raw material. Which, as a consequence, will probably reduce its revenue and profit margins. Especially considering the fact the prices are already relatively low! For now, Zara has managed to develop a well integrated and efficient supply chain that keeps the cost of raw materials low. But this might not last forever, especially if the prices keep rising.
Regulatory threats – the business industry is gradually getting more and more regulated. On a global scale, governments and legal agencies are regulating all kind of sectors and businesses, and the fashion market is not an exception. This includes labour, quality, customer services, and many other aspects of the industry. All of these regulations might eventually have a negative impact on Zara.

Do you want to learn more about SWOT analysis? You might want to check these articles:

9 Effective Ways to Identify Opportunities in SWOT Analysis
10 Common SWOT Analysis Mistakes in 2022 & How to Fix Them

Need more SWOT analysis examples? Check out our article on Coca Cola SWOT analysis.

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How do you write a good SWOT analysis?

The first step for writing a good SWOT analysis is to determine your objective - what company and strategy are you going to analyze? Next, take a piece of paper and draw a grid with 4 squares, labeling each one of them as it follows - Strengths, Weaknesses, Opportunities and Threats. The key to a good SWOT analysis is getting as specific as possible with each section in order to get more tangible and clear points of action.

What is a SWOT analysis tool?

SWOT analysis is a technique for strategic planning that allows you to assess and identify the strengths and weaknesses of your company (internal factors), as well as the opportunities and threats that may come from the outside, including market trends and competition (external factors).

Why is SWOT analysis important?

SWOT analysis is important for businesses because it provides them with a simple, but powerful framework to assess their own ability to compete on the market, identifying strengths to highlight and weaknesses to work on improving. It also gives them a quick glance at the market from an outside perspective, allowing them to spot current opportunities and identify potential threats that should be addressed as early as possible.

What is the most difficult part of the SWOT analysis?

While the answer may vary between companies and industries, the most difficult part of the SWOT analysis tends to be Opportunities. The main reason why is because the answer may sometimes require a comprehensive and detailed market research to reveal certain opportunities.

And that was all from me, folks! I hope you liked my in-depth SWOT analysis examples. I think the best way to learn a concept is to see how it is applied in practice. For this reason, I wanted to focus this article from a practical rather than a theoretical perspective. However, if you have any questions, do not hesitate to send me an email at [email protected], or just let me know in the comments below!

Thank you for taking the time to read my article 3 Great SWOT Analysis Examples with Real Companies, and I hope to see you in the next one!

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Hello, and welcome to my blog! Let me present myself.

My name is Ani and I am a trilingual Digital Marketing & Analytics Specialist with 10 years of experience across multiple sectors including Cloud-based services, SaaS, Digital payments, Mobile apps, and Executive Education, among others.

My expertise covers areas such as Google Ads, Google Analytics, Search Engine Optimization, Content Marketing, and Social Media.

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Understand SWOT Analysis With 3 Examples – Netflix, Pepsico & Starbucks

Brand marketing is an ancient art form. Did you know ancient civilizations would stamp their goods for customers to guarantee the quality? That was probably the earliest form of cultivating brand loyalty.

Then came the printing press. With it, we entered the age of pamphlets, posters and paper-centric information.

With mass media, brands made an appearance everywhere. Outside your window on a billboard, next to your favorite newspaper crossword and in between your favorite TV show.

If you follow the trail, brands go where the customers are. When the consumer moved online, all companies followed suit. We are now in the age of digital marketing. It’s an advanced form of the marketing industry that uses sophisticated techniques and technology to reach the target customer. Unlike earlier, you no longer have to shout from the rooftops about your brand. Now you can quietly slip into someone’s email or cleverly catch their attention through social media algorithms. In 2022, five billion people were on the internet. With digital marketing, not only can you effectively reach out to this massive number, but you can also personalize the message to have a significant impact. It also helps to perform a SWOT analysis in marketing as it always helps to understand your company better and enhance productivity.

What Is Digital Marketing?

Digital marketing is a form of online communication that uses different electronic media to promote brands and spread messages. People are constantly on their phones, tablets or computers. Look around, and you’ll see eyeballs glued to phone screens everywhere. That tiny piece of digital space is prime marketing real estate. You can use it to showcase ads, banners, links, direct emails and social media posts that are tailor-made to appeal to the customer. It’s an exciting opportunity to be creative yet precise. You can fine-tune your strategy to appeal to specific consumers. It is a fantastic way to generate interest in your products among potential customers as you create a unique connection.

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

Published: October 05, 2023

As your business grows, you need a roadmap to help navigate the obstacles, challenges, opportunities, and projects that come your way. Enter: the SWOT analysis.

man conducting swot analysis for his business

This framework can help you develop a plan to determine your priorities, maximize opportunities, and minimize roadblocks as you scale your organization. Below, let’s go over exactly what a SWOT analysis is, a few SWOT analysis examples, and how to conduct one for your business.

When you’re done reading, you’ll have all the inspiration and tactical advice you need to tackle a SWOT analysis for your business.

What is a SWOT analysis? Importance of a SWOT Analysis How to Write a Good SWOT Analysis SWOT Analysis Examples How to Act on a SWOT Analysis

What is a SWOT analysis?

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.

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Importance of a SWOT Analysis

You’ve 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.

But you shouldn’t. Doing a SWOT analysis is important. Here’s why.

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, when you consider the weaknesses and threats that your business may face, you can address any concerns or challenges and strategize on how to mitigate those risks. At the same time, you can identify strengths and opportunities, which can inspire innovative ideas and help you dream big. Both are equally important.

SWOT forces you to define your variables.

Instead of diving head first into planning and execution, you’re taking inventory of all your assets and roadblocks. This process will help you develop strategies that leverage your strengths and opportunities while addressing and mitigating the impact of weaknesses and threats.

As a result, you'll gain a comprehensive understanding of your current situation and create a more specific and effective roadmap. Plus, a SWOT analysis is inherently proactive. That means you'll be better equipped to make informed decisions, allocate resources effectively, and set realistic goals.

SWOT allows you to account for mitigating factors.

As you identify weaknesses and threats, you’re better able to account for them in your roadmap, improving your chances of success.

Moreover, accounting for mitigating factors allows you to allocate your resources wisely and make informed decisions that lead to sustainable growth. With a SWOT analysis as a guide, you can confidently face challenges and seize opportunities.

SWOT helps you keep a written record.

As your organization grows and changes, you’ll be able to strike things off your old SWOTs and make additions. You can look back at where you 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.

Parts of a SWOT Analysis

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.

Your 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. By identifying and capitalizing on your strengths, you can foster customer loyalty and build a solid foundation for growth.

No business is flawless. Weaknesses are areas where you may face challenges or fall short of your potential. It could be outdated processes, skill gaps within the team, or inadequate resources. By acknowledging these weaknesses, you can establish targeted initiatives for improvement, upskill your team, adopt new technologies, and enhance your overall operational efficiency.

Opportunities are external factors that can contribute to your company's progress. These may include emerging markets, technological advancements, changes in consumer behavior, or gaps in the market that your company can fill. By seizing these opportunities, you can expand your market reach, diversify your product offerings, forge strategic partnerships, or even venture into untapped territories.

Threats are external factors that are beyond your control and pose challenges to your business. Increased competition, economic volatility, evolving regulatory landscapes, or even changing market trends are examples of threats. By proactively assessing and addressing them, you can develop contingency plans, adjust your strategies, and minimize their impact on your operations.

In a SWOT analysis, you’ll have to take both internal and external factors into account. We’ll cover those next.

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SWOT Analysis Internal and External Factors

A SWOT analysis typically has internal (i.e., within your organization) and external (i.e., outside your organization) factors at play. Here's a breakdown of each.

Internal Factors

Internal factors refer to the characteristics and resources within your organization that directly influence its operations and performance. These factors are completely within your organization's control, so they can be modified, improved, or capitalized upon.

In a SWOT analysis, strengths and weaknesses are categorized as internal factors. Let’s look at a few examples.

Brand reputation
Unique expertise
Loyal customer base
Talented workforce
Efficient processes
Proprietary technology
Outdated technology
Inadequate resources
Poor financial health
Inefficient processes
Skill gaps within the team

External Factors

External factors are elements outside the organization's control that have an impact on its operations, market position, and success. These factors arise from the industry climate and the broader business environment. You typically have no control over external factors, but you can respond to them.

In a SWOT analysis, opportunities and threats are categorized as external factors. Let’s look at a few examples.

Emerging markets
Changing consumer trends
Technological advancements
Positive shifts in regulations
New gaps in the market you could fill
Intense competition
Economic downturns
Disruptive technologies
Changing regulations
Negative shifts in consumer behavior

Remember, a well-rounded SWOT analysis empowers you to capitalize on strengths, address weaknesses, seize opportunities, and navigate threats — all while making informed decisions for the future.

Now, let’s take a look at how you can write a good SWOT analysis for yourself or for stakeholders.

How do you write a good SWOT analysis?

There are several steps you’ll want to take when evaluating your business and conducting a strategic SWOT analysis.

1. Download HubSpot's SWOT Analysis Template.

There’s no need to start from scratch for your analysis. Instead, start by downloading a free, editable template from HubSpot. Feel free to use the model yourself, or create your own as it suits your needs.

HubSpot’s free SWOT analysis template explains how to do a SWOT analysis.

3. Identify your objective.

Before you start writing things down, you’ll need to figure out what you’re evaluating with your SWOT analysis.

Be specific about what you want to analyze. Otherwise, your SWOT analysis may end up being too broad, and you’ll get analysis paralysis as you are making your evaluations.

If you’re creating a new social media program, you’ll want to conduct an analysis to inform your content creation strategy. If you’re launching a new product, you’ll want to understand its potential positioning in the space. If you’re considering a brand redesign, you’ll want to consider existing and future brand conceptions.

All of these are examples of good reasons to conduct a SWOT analysis. By identifying your objective, you’ll be able to tailor your evaluation to get more actionable insights.

4. Identify your strengths.

“Strengths” refers to what you are currently doing well. Think about the factors that are going in your favor as well as the things you offer that your competitors just can’t beat.

For example, let’s say you want to use a SWOT analysis to evaluate your new social media strategy.

If you’re looking at a new social media program, perhaps you want to evaluate how your brand is perceived by the public. Is it easily recognizable and well-known? Even if it’s not popular with a widespread group, is it well-received by a specific audience?

Next, think about your process: Is it effective or innovative? Is there good communication between marketing and sales?

Finally, evaluate your social media message, and in particular, how it differs from the rest of the industry. I’m willing to bet you can make a lengthy list of some major strengths of your social media strategy over your competitors, so try to dive into your strengths from there.

5. Identify your weaknesses.

In contrast to your strengths, what are the roadblocks hindering you from reaching your goals? What do your competitors offer that continues to be a thorn in your side?

This section isn’t about dwelling on negative aspects. Rather, it’s critical to foresee any potential obstacles that could mitigate your success.

When identifying weaknesses, consider what areas of your business are the least profitable, where you lack certain resources, or what costs you the most time and money. Take input from employees in different departments, as they’ll likely see weaknesses you hadn’t considered.

If you’re examining a new social media strategy, you might start by asking yourself these questions: First, if I were a consumer, what would prevent me from buying this product, or engaging with this business? What would make me click away from the screen?

Second, what do I foresee as the biggest hindrance to my employees’ productivity, or their ability to get the job done efficiently? What derails their social media efforts?

6. Consider your opportunities.

This is your chance to dream big. What are some opportunities for your social media strategy you hope, but don’t necessarily expect, to reach?

For instance, maybe you’re hoping your Facebook ads will attract a new, larger demographic. Maybe you’re hoping your YouTube video gets 10,000 views and increases sales by 10%.

Whatever the case, it’s important to include potential opportunities in your SWOT analysis. Ask yourself these questions:

What technologies do I want my business to use to make it more effective?
What new target audience do I want to reach?
How can the business stand out more in the current industry?
Is there something our customers complain about that we could fix?

The opportunities category goes hand-in-hand with the weaknesses category. Once you’ve made a list of weaknesses, it should be easy to create a list of potential opportunities that could arise if you eliminate your weaknesses.

7. Contemplate your threats.

It’s likely, especially if you’re prone to worry, you already have a good list of threats in your head.

If not, gather your employees and brainstorm. Start with these questions:

What obstacles might prevent us from reaching our goals?
What’s going on in the industry, or with our competitors, that might mitigate our success?
Is there new technology out there that could conflict with our product?

Writing down your threats helps you evaluate them objectively.

For instance, maybe you list your threats in terms of least and most likely to occur and divide and conquer each. If one of your biggest threats is your competitor’s popular Instagram account, you could work with your marketing department to create content that showcases your product’s unique features.

SWOT Analysis Chart

Download a free SWOT analysis chart included in HubSpot’s free market research kit .

A SWOT analysis doesn’t have to be fancy. Our SWOT analysis chart provides a clear and structured framework for capturing and organizing your internal strengths and weaknesses, and external opportunities and threats. It's the perfect visual aid to make sense of the wealth of information gathered during your analysis.

(Plus, you can always customize and paste it into a document you plan to share with stakeholders.)

But remember: Filling out the SWOT chart is just one step in the process. Combine it with our entire market research kit , and you'll have all the tools necessary to help your organization navigate new opportunities and threats.

SWOT Analysis Examples

The template above helps get you started on your own SWOT analysis.

But, if you’re anything like me, it’s not enough to see a template. To fully understand a concept, you need to see how it plays out in the real world.

These SWOT examples are not exhaustive. However, they are a great starting point to inspire you as you do your own SWOT analysis.

Apple’s SWOT analysis

Here’s how we’d conduct a SWOT analysis on Apple.

First off, strengths. While Apple has many strengths, let’s identify the top three:

Brand recognition.
Innovative products.
Ease of use.

Apple’s brand is undeniably strong, and its business is considered the most valuable in the world . Since it’s easily recognized, Apple can produce new products and almost ensure a certain degree of success by virtue of the brand name itself.

Apple’s highly innovative products are often at the forefront of the industry. One thing that sets Apple apart from the competition is its product inter-connectivity.

For instance, an Apple user can easily sync their iPhone and iPad together. They can access all of their photos, contacts, apps, and more no matter which device they are using.

Lastly, customers enjoy how easy it is to use Apple’s products. With a sleek and simple design, each product is developed so that most people can quickly learn how to use them.

Next, let’s look at three of Apple’s weaknesses.

High prices
Closed ecosystem
Lack of experimentation

While the high prices don’t deter Apple’s middle- and upper-class customer base, they do hinder Apple’s ability to reach a lower-class demographic.

Apple also suffers from its own exclusivity. Apple controls all its services and products in-house, and while many customers become loyal brand advocates for this reason, it means all burdens fall on Apple employees.

Ultimately, Apple’s tight control over who distributes its products limits its market reach.

Lastly, Apple is held to a high standard when it comes to creating and distributing products. Apple’s brand carries a high level of prestige. That level of recognition inhibits Apple from taking risks and experimenting freely with new products that could fail.

Now, let’s take a look at opportunities for Apple.

It’s easy to recognize opportunities for improvement, once you consider Apple’s weaknesses. Here’s a list of three we came up with:

Expand distribution options.
Create new product lines.
Technological advancement.

One of Apple’s biggest weaknesses is its distribution network, which, in the name of exclusivity, remains relatively small. If Apple expanded its network and enabled third-party businesses to sell its products, it could reach more people globally, while alleviating some of the stress currently put on in-house employees.

There are also plenty of opportunities for Apple to create new products. Apple could consider creating more affordable products to reach a larger demographic, or spreading out into new industries — Apple self-driving cars, perhaps?

Finally, Apple could continue advancing its products’ technology. Apple can take existing products and refine them, ensuring each product offers as many unique features as possible.

Finally, let’s look at threats to Apple.

Believe it or not, they do exist.

Here are three of Apple’s biggest threats:

Tough competition.
International issues.

Apple isn’t the only innovative tech company out there, and it continues to face tough competition from Samsung, Google, and other major forces. In fact, Samsung sold more smartphones than Apple did in Q1 of 2022 , shipping 17 million more units than Apple and holding 24% of the market share.

Many of Apple’s weaknesses hinder Apple’s ability to compete with the tech corporations that have more freedom to experiment, or that don’t operate in a closed ecosystem.

A second threat to Apple is lawsuits. Apple has faced plenty of lawsuits, particularly between Apple and Samsung . These lawsuits interfere with Apple’s reputable image and could steer some customers to purchase elsewhere.

Finally, Apple needs to improve its reach internationally. The company isn’t number one in China and doesn’t have a very positive relationship with the Chinese government. In India, which has one of the largest consumer markets in the world, Apple’s market share is low , and the company has trouble bringing stores to India’s market.

If Apple can’t compete globally the way Samsung or Google can, it risks falling behind in the industry.

Starbucks SWOT Analysis

Now that we’ve explored the nuances involved with a SWOT analysis, let’s fill out a SWOT template using Starbucks as an example.

Here’s how we’d fill out a SWOT template if we were Starbucks:

Download this Template for Free

Restaurant Small Business SWOT Analysis

Some small business marketers may have difficulty relating to the SWOTs of big brands like Apple and Starbucks. Here’s an example of how a dine-in Thai restaurant might visualize each element.

A SWOT analysis example for a restaurant small business.

Small restaurants can lean into their culinary expertise and service skills to find opportunities for growth and brand awareness. A SWOT analysis can also help identify weaknesses that can be improved, such as menu variation and pricing.

While a restaurant might not be as worried about high-level lawsuits, a small business might be more concerned about competitors or disruptors that might enter the playing field.

Local Boutique SWOT Analysis

In another small business example, let’s take a look at a SWOT analysis for a local boutique.

A SWOT analysis example for a local boutique.

This shop might be well known in its neighborhood, but it also might take time to build an online presence or get its products in an online store.

Because of this, some of its strengths and opportunities might relate to physical factors while weaknesses and threats might relate to online situations.

How to Act on a SWOT Analysis

After conducting a SWOT analysis, you may be asking yourself: What’s next?

Putting together a SWOT analysis is only one step. Executing the findings identified by the analysis is just as important — if not more.

Put your insights into action using the following steps.

Take advantage of your strengths.

Use your strengths to pursue opportunities from your analysis.

For example, if we look at the local boutique example above, the strength of having affordable prices can be a value proposition. You can emphasize your affordable prices on social media or launch an online store.

Address your weaknesses.

Back to the boutique example, one of its weaknesses is having a poor social media presence. To mitigate this, the boutique could hire a social media consultant to improve its strategy. They may even tap into the expertise of a social-savvy employee.

Make note of the threats.

Threats are often external factors that can’t be controlled, so it’s best to monitor the threats outlined in your SWOT analysis to be aware of their impacts on your business.

When to Use a SWOT Analysis

While the examples above focus on business strategy in general, you can also use a SWOT analysis to evaluate and predict how a singular product will play out in the market.

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.

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

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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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SWOT Analysis

Support your understanding of the SWOT Analysis to...
1 When to use a SWOT analysis
2 Exploring the environment of a project
3.1 Strengths and weaknesses
3.2 Opportunities and threats
4 Completing the SWOT analysis

5.1 SWOT analysis: a case study

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Read through the case study and SWOT Analysis Template, then try to complete the activity below.

Case study 1: Syed’s business opportunity

Syed runs his own enterprise in an area on the outskirts of Dhaka, Bangladesh. He manages a collective of people with disabilities who make Bangladeshi puppets in a traditional style, mainly selling to tourists through local shops, and pays them a basic salary as well as a profit share. The puppets are all made to Syed’s own designs, and are quite different to the standard items in most tourist stores. His quirky designs and their popularity with shoppers have come to the attention of Muhammad, who runs a relatively large factory producing puppets and other tourist-friendly wares. Muhammad approaches Syed to suggest that he buy his enterprise, including his designs, and that Syed and his employees all come and work at Muhammad’s factory. He is offering a lot of money, and Syed doesn’t know whether he wants to maintain his independence or go for the security offered by a lump cash sum and guaranteed employment. He uses a SWOT analysis to take a snapshot of his current situation and help him consider the decision:

Diagram of a SWOT analysis tool with 4 boxes with hand written bullet points in each section. Box 1: Strengths, Box 2: Weaknesses (with Internal Factors text in between connecting both boxes), Box 3: Opportunities, Box 4: Threats (with External Factors text in between connecting both boxes).

Looking at the case study above, including Syed’s SWOT analysis, imagine you are helping Syed make his decision. What points would you highlight? Would you recommend him to sell to Muhammad? Make some notes in answer to this question in the text box below.

Syed has provided some interesting information in his SWOT analysis. By taking a realistic look at his business as it is, he can decide what is most likely to make sense for its future. There’s no absolute right or wrong here (there rarely is in this sort of decision-making), but based on the information given I would advise Syed not to sell. These are the key points I would highlight:

Syed has a lot of strengths, mainly based on the very fact that the organisation is small and under his management.
Being dependent on one supplier is always a risk, especially now they are becoming unreliable. However, there’s no reason he couldn’t identify other suppliers and shop around to get a good deal and spread the risk by regularly using two or three.
Syed has said that cash flow is a weakness that stops him from expanding. It sounds like now would be a great time to explore the financial support from the new NGO, as this would enable him to respond to some of the other opportunities (new shops and the potential for export) at his own pace and under his control.
If he expands, perhaps he could take on some new employees part time? If he has, say, four employees who work half time rather than two who work full time, he has spread the risk of his dependency – if someone is ill or leaves, one or more of the others might be able to increase their hours.
If he agrees to Muhammad’s offer, he will lose his independence and have to commute to a different workplace. Will the people he works with be able to commute, or in practical terms will this mean they become unemployed (and how might he feel about that)? More people will see and buy his designs, but will his name or mark be on them?
What if he explores the opportunities for expansion that the SWOT analysis has highlighted, and then considers whether the offer looks tempting?

Finally, I would perhaps suggest that this isn’t a yes or no decision, and there might be a way that Syed could maintain all his strengths but still work in partnership with Muhammad. He could create some designs especially for Muhammad’s factory, and/or draw on some of his resources in exchange for design expertise. At this point, a SWOT analysis of the potential partnership could be a useful decision-making tool.

5 Using the SWOT analysis for decision making

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Article • 17 min read

SWOT Analysis

Understanding your business, informing your strategy.

By the Mind Tools Content Team

Key Takeaways:

SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats.

A "SWOT analysis" involves carefully assessing these four factors in order to make clear and effective plans.

A SWOT analysis can help you to challenge risky assumptions, uncover dangerous blindspots, and reveal important new insights.

The SWOT analysis process is most effective when done collaboratively.

What Is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business.

SWOT Analysis is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future. SWOT can also uncover areas of the business that are holding you back, or that your competitors could exploit if you don't protect yourself.

A SWOT analysis examines both internal and external factors – that is, what's going on inside and outside your organization. So some of these factors will be within your control and some will not. In either case, the wisest action you can take in response will become clearer once you've discovered, recorded and analyzed as many factors as you can.

In this article, video and infographic, we explore how to carry out a SWOT analysis, and how to put your findings into action. We also include a worked example and a template to help you get started on a SWOT analysis in your own workplace.

Why Is SWOT Analysis Important?

SWOT analysis can help you to challenge risky assumptions and to uncover dangerous blindspots about your organization's performance. If you use it carefully and collaboratively, it can deliver new insights on where your business currently is, and help you to develop exactly the right strategy for any situation.

For example, you may be well aware of some of your organization's strengths, but until you record them alongside weaknesses and threats you might not realize how unreliable those strengths actually are.

Equally, you likely have reasonable concerns about some of your business weaknesses but, by going through the analysis systematically, you could find an opportunity, previously overlooked, that could more than compensate.

How to Write a SWOT Analysis

SWOT analysis involves making lists – but so much more, too! When you begin to write one list (say, Strengths), the thought process and research that you'll go through will prompt ideas for the other lists (Weaknesses, Opportunities or Threats). And if you compare these lists side by side, you will likely notice connections and contradictions, which you'll want to highlight and explore.

You'll find yourself moving back and forth between your lists frequently. So, make the task easier and more effective by arranging your four lists together in one view.

A SWOT matrix is a 2x2 grid, with one square for each of the four aspects of SWOT. (Figure 1 shows what it should look like.) Each section is headed by some questions to get your thinking started.

Figure 1. A SWOT Analysis Matrix.

Swot analysis template.

When conducting your SWOT analysis, you can either draw your own matrix, or use our free downloadable template .

How to Do a SWOT Analysis

Avoid relying on your own, partial understanding of your organization. Your assumptions could be wrong. Instead, gather a team of people from a range of functions and levels to build a broad and insightful list of observations.

Then, every time you identify a Strength, Weakness, Opportunity, or Threat, write it down in the relevant part of the SWOT analysis grid for all to see.

Let's look at each area in more detail and consider what fits where, and what questions you could ask as part of your data gathering.

Strengths are things that your organization does particularly well, or in a way that distinguishes you from your competitors. Think about the advantages your organization has over other organizations. These might be the motivation of your staff, access to certain materials, or a strong set of manufacturing processes.

Your strengths are an integral part of your organization, so think about what makes it "tick." What do you do better than anyone else? What values drive your business? What unique or lowest-cost resources can you draw upon that others can't? Identify and analyze your organization's Unique Selling Proposition (USP), and add this to the Strengths section.

Then turn your perspective around and ask yourself what your competitors might see as your strengths. What factors mean that you get the sale ahead of them?

Remember, any aspect of your organization is only a strength if it brings you a clear advantage. For example, if all of your competitors provide high-quality products, then a high-quality production process is not a strength in your market: it's a necessity.

Weaknesses, like strengths, are inherent features of your organization, so focus on your people, resources, systems, and procedures. Think about what you could improve, and the sorts of practices you should avoid.

Once again, imagine (or find out) how other people in your market see you. Do they notice weaknesses that you tend to be blind to? Take time to examine how and why your competitors are doing better than you. What are you lacking?

Be honest! A SWOT analysis will only be valuable if you gather all the information you need. So, it's best to be realistic now, and face any unpleasant truths as soon as possible.

Opportunities

Opportunities are openings or chances for something positive to happen, but you'll need to claim them for yourself!

They usually arise from situations outside your organization, and require an eye to what might happen in the future. They might arise as developments in the market you serve, or in the technology you use. Being able to spot and exploit opportunities can make a huge difference to your organization's ability to compete and take the lead in your market.

Think about good opportunities that you can exploit immediately. These don't need to be game-changers: even small advantages can increase your organization's competitiveness. What interesting market trends are you aware of, large or small, which could have an impact?

You should also watch out for changes in government policy related to your field. And changes in social patterns, population profiles, and lifestyles can all throw up interesting opportunities.

Threats include anything that can negatively affect your business from the outside, such as supply-chain problems, shifts in market requirements, or a shortage of recruits. It's vital to anticipate threats and to take action against them before you become a victim of them and your growth stalls.

Think about the obstacles you face in getting your product to market and selling. You may notice that quality standards or specifications for your products are changing, and that you'll need to change those products if you're to stay in the lead. Evolving technology is an ever-present threat, as well as an opportunity!

Always consider what your competitors are doing, and whether you should be changing your organization's emphasis to meet the challenge. But remember that what they're doing might not be the right thing for you to do. So, avoid copying them without knowing how it will improve your position.

Be sure to explore whether your organization is especially exposed to external challenges. Do you have bad debt or cash-flow problems, for example, that could make you vulnerable to even small changes in your market? This is the kind of threat that can seriously damage your business, so be alert.

Use PEST Analysis to ensure that you don't overlook threatening external factors. And PMESII-PT is an especially helpful check in very unfamiliar or uncertain environments.

A SWOT Analysis Example

Imagine this scenario: a small start-up consultancy wants a clear picture of its current situation, to decide on a future strategy for growth. The team gathers, and draws up the SWOT Analysis shown in Figure 2.

Figure 2. A Completed SWOT Analysis.

As a result of the team's analysis, it's clear that the consultancy's main strengths lie in its agility, technical expertise, and low overheads. These allow it to offer excellent customer service to a relatively small client base.

The company's weaknesses are also to do with its size. It will need to invest in training, to improve the skills base of the small staff. It'll also need to focus on retention, so it doesn't lose key team members.

There are opportunities in offering rapid-response, good-value services to local businesses and to local government organizations. The company can likely be first to market with new products and services, given that its competitors are slow adopters.

The threats require the consultancy to keep up-to-date with changes in technology. It also needs to keep a close eye on its largest competitors, given its vulnerability to large-scale changes in its market. To counteract this, the business needs to focus its marketing on selected industry websites, to get the greatest possible market presence on a small advertising budget.

Frequently Asked Questions About SWOT Analysis

1. who invented swot analysis.

Many people attribute SWOT Analysis to Albert S. Humphrey. However, there has been some debate on the originator of the tool, as discussed in the International Journal of Business Research .

2. What Does SWOT Analysis Stand For?

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

3. What Can a SWOT Analysis Be Used For?

SWOT analysis is a useful tool to help you determine your organization's position in the market. You can then use this information to create an informed strategy suited to your needs and capabilities.

4. How Do I Write a SWOT Analysis?

To conduct a SWOT analysis, you first need to create a 2x2 matrix grid. Each square is then assigned to one of the four aspects of SWOT. You can either draw this grid yourself or use our downloadable template to get started.

5. How Do SWOT Analysis and the TOWS Matrix compare?

While SWOT analysis puts the emphasis on the internal environment (your strengths and weaknesses), TOWS forces you to look at your external environment first (your threats and opportunities). In most cases, you'll do a SWOT Analysis first, and follow up with a TOWS Matrix to offer a broader context.

6. What Are the Biggest SWOT Analysis Mistakes?

Making your lists too long. Ask yourself if your ideas are feasible as you go along.
Being vague. Be specific to provide more focus for later discussions.
Not seeing weaknesses. Be sure to ask customers and colleagues what they experience in real life.
Not thinking ahead. It's easy to come up with nice ideas without taking them through to their logical conclusion. Always consider their practical impact.
Being unrealistic. Don't plan in detail for opportunities that don't exist yet. For example, that export market you've been eyeing may be available at some point, but the trade negotiations to open it up could take years.
Relying on SWOT Analysis alone. SWOT Analysis is valuable. But when you use it alongside other planning tools (SOAR, TOWS or PEST), the results will be more vigorous.

How to Use a SWOT Analysis

Use a SWOT Analysis to assess your organization's current position before you decide on any new strategy. Find out what's working well, and what's not so good. Ask yourself where you want to go, how you might get there – and what might get in your way.

Once you've examined all four aspects of SWOT, you'll want to build on your strengths, boost your weaker areas, head off any threats, and exploit every opportunity. In fact, you'll likely be faced with a long list of potential actions.

But before you go ahead, be sure to develop your ideas further. Look for potential connections between the quadrants of your matrix. For example, could you use some of your strengths to open up further opportunities? And, would even more opportunities become available by eliminating some of your weaknesses?

Finally, it's time to ruthlessly prune and prioritize your ideas, so that you can focus time and money on the most significant and impactful ones. Refine each point to make your comparisons clearer. For example, only accept precise, verifiable statements such as, "Cost advantage of $30/ton in sourcing raw material x," rather than, "Better value for money."

Remember to apply your learnings at the right level in your organization. For example, at a product or product-line level, rather than at the much vaguer whole-company level. And use your SWOT analysis alongside other strategy tools (for example, Core Competencies Analysis ), so that you get a comprehensive picture of the situation you're dealing with.

SWOT Analysis Tips

Here are four tips for getting more out of a SWOT analysis:

Be specific. The more focused and accurate you are about the points you write down, the more useful your SWOT analysis will be.
Work backwards. Experiment with filling in the four sections of your SWOT analysis in a different order, to stimulate new ways of thinking. Working backwards, in particular, from threats to strengths, may cast new light on the situation.
Get together. Highlight the most useful people to contribute to your SWOT analysis, then gather information and ideas from them all.
SWOT your competition ! To stay ahead of your competitors, carry out a regular SWOT analysis on them . Use everything you know about them to evaluate their situation, and use SWOT analysis to plan your competitive strategies accordingly.

It's also possible to carry out a Personal SWOT Analysis . This can be useful for developing your career in ways that take best advantage of your talents, abilities and opportunities.

SWOT Analysis Infographic

See SWOT Analysis represented in our infographic :

SWOT Analysis helps you to identify your organization's Strengths, Weaknesses, Opportunities, and Threats.

It guides you to build on what you do well, address what you're lacking, seize new openings, and minimize risks.

Apply a SWOT Analysis to assess your organization's position before you decide on any new strategy.

Use a SWOT matrix to prompt your research and to record your ideas. Avoid making huge lists of suggestions. Be as specific as you can, and be honest about your weaknesses.

Be realistic and rigorous. Prune and prioritize your ideas, to focus time and money on the most significant and impactful actions and solutions. Complement your use of SWOT with other tools.

Collaborate with a team of people from across the business. This will help to uncover a more accurate and honest picture.

Find out what's working well, and what's not so good. Ask yourself where you want to go, how you might get there – and what might get in your way.

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SWOT is useless. When you try it and you find Weaknesses box bulging, but Strengths & Opportunities completely empty, what can that possibly achieve?

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Swot analysis, the swot analysis is an extremely useful tool to assess a company’s strategic positioning, use a swot analysis to determine whether a company’s key strategies are aligned with its objectives and what obstacles have to be overcome.

Internal positive factors are called S trengths, internal negative factors are called W eaknesses, external positive factors are called O pportunities, and external negative factors are called T hreats. This framework is seldom used in the day-to-day work of MBB consultants because it overlaps between many categories (for example, customers putting pressure on prices can be seen as either an external threat or an internal weakness of the customer base). However, in case interviews , the SWOT analysis can still be used as a tool to segment influences into a 2x2 matrix .

We will now go over each of the four branches in more detail and provide examples.

Strengths (Internal positive factors)

The strengths of a company are its resources and capabilities, for example:

Image/Goodwill
Financial resources
Access to networks, natural resources

Weaknesses (Internal negative factors)

Weaknesses can usually be viewed as the absence of specific strengths or things that are done better by competitors, for example:

Poor reputation
High cost structure
Lack of customer/employee loyalty
Lack of innovative R&D
Lack of access to key distribution channels/resources/trade associations

Opportunities (External positive factors)

Opportunities reveal new options for growth in profits including:

New technologies
Removing barriers to trade
Loosening of regulations
Entry into new markets

Threats (External negative factors)

External changes that will have a negative effect on growth and profit are threats, for example:

A shift in customers’ needs, expectations, and taste away from the core of the companies products
New regulations
Neutral factors like this can also be opportunities if they are beneficial to the company
Especially with external factors like these, it is important to set it into the context of the respective company
New market entrants/low barriers to entry
Emergence of a substitute product (see Porter's Five Forces )

Once you have completed the SWOT analysis, draw insights into the matrix

After lining out the gathered information in a simple 2x2 Matrix , step further by identifying strategies that address the following questions:

How to use strengths to take advantage of the opportunities.
How to take advantage of the strengths to avoid threats.
How to use opportunities to overcome weaknesses.
How to minimize weaknesses and avoid them.

Key takeaways

The SWOT matrix is a simple analysis of internal strengths and weaknesses as well as external opportunities and threats.
Opportunities can be seen as threats and vice versa.
SWOT matrices don’t show the interrelationship between internal and external factors.
The SWOT analysis itself does not allow us to make strategic decisions but can be used for meaningful insights.

Netflix SWOT Analysis

Before we dive deep into the SWOT analysis, let’s get the business overview of Netflix. Netflix is a popular American media services provider and production company founded in 1997. It offers a subscription-based streaming service that allows users to watch a wide range of TV shows, movies, documentaries, and more on internet-connected devices.

Netflix has expanded its services globally and is now available in over 190 countries. In addition to offering content from various studios and networks, Netflix also produces its own original programming, which has gained critical acclaim and popular success.

Some of Netflix’s most popular original shows include Stranger Things, The Crown, Narcos, Orange is the New Black, and House of Cards. Netflix has also produced successful original movies like Roma, Bird Box, and Marriage Story.

To access Netflix’s streaming service, users can subscribe to one of several membership plans, which vary in price based on the number of simultaneous streams and the video quality. Users can watch Netflix on smart TVs, smartphones, tablets, laptops, and gaming consoles.

Netflix – Constantly Pivoting its Business Model to Success

Infographic: Netflix is Responsible for 15% of Global Internet Traffic | Statista

Here is the SWOT analysis for Netflix

A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture’s success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT Analysis of Netflix.

By the way, here is a course that will help you stand out in the world of strategy. The Strategic Thinking program for CxO by Cambridge Judge Business School maps your competitive advantage and teaches advanced techniques to formulate, evaluate, and execute winning strategies. Generate winning strategies and learn how to renew them in times of crisis for a competitive advantage.

SWOT Analysis: Meaning, Importance, and Examples

Netflix has several strengths that have contributed to its success as a company:

Extensive content library : Netflix has a vast library of TV shows, movies, and documentaries from various studios and networks. This comprehensive collection of content provides users with a wide range of options to choose from.
Original programming : Netflix has invested heavily in producing its own original programming. This has given the company an edge in the highly competitive streaming market and has helped it differentiate itself from other streaming services.
Global reach : Netflix is available in over 190 countries, which gives the company a massive audience and revenue potential. This global presence has also helped Netflix to attract international talent and expand its content offerings.
User-friendly interface : Netflix’s platform is easy to use and navigate. Users can quickly search for and find the content they want to watch, and the platform’s personalized recommendations make it easy for users to discover new shows and movies.
Data-driven approach : Netflix uses data analytics to track user behavior and preferences. This enables the company to provide personalized recommendations and create content that resonates with its audience.
Innovative technology : Netflix has invested in developing new technologies that improve the user experience, such as its adaptive streaming technology, which adjusts video quality based on internet speed.
Brand recognition : Netflix has built a strong brand associated with high-quality content and a commitment to innovation. This has helped the company to attract new subscribers and retain existing ones.

While Netflix is a highly successful company, it also faces several weaknesses:

Dependence on licensing agreements : Although Netflix has been producing more original content, it still relies heavily on licensing agreements with studios and networks to offer popular TV shows and movies. This leaves Netflix vulnerable to losing content if licensing agreements are not renewed or if studios decide to pull their content.
High content production costs : Producing original content can be expensive, and Netflix has spent billions of dollars on developing and producing its original programming. This high cost can make it difficult for Netflix to maintain profitability.
Regional content restrictions : Netflix’s content library varies by region due to licensing agreements and regulations. This can lead to inconsistencies in the content available to users in different countries, frustrating subscribers.
Subscription model : Netflix’s business model is based on subscriptions, which means it relies on a steady flow of new subscribers to maintain revenue growth. This can be challenging as competition in the streaming market increases and other companies offer similar services.
Limited advertising revenue : Netflix does not show traditional ads on its platform, which limits its advertising revenue potential. While this may appeal to subscribers, it also means that the company must rely solely on subscription revenue to generate income.

Netflix: Thriving on a Maverick Culture

By the way, to communicate our strategy effectively within the team, we all need a robust collaboration platform. Miro is the leading visual collaboration platform. Build anything together on Miro. It’s free and as easy to use as a whiteboard , but endlessly more powerful. Do use the Miro platform for strong communication within your team.

Opportunities

Netflix has several opportunities that it can capitalize on to maintain its growth and success:

International expansion : Netflix has already expanded its services to over 190 countries, but there is still room for growth in some regions. By expanding globally, Netflix can tap into new markets and increase its subscriber base.
Original content production : Netflix’s original content has been highly successful, and the company has an opportunity to produce more high-quality shows and movies that attract a broad audience. This will enable Netflix to continue differentiating itself from other streaming services.
Strategic partnerships : Netflix can form alliances with other companies to offer additional value to subscribers. For example, partnerships with internet service providers can offer bundled services that include both internet and Netflix subscriptions.
Merchandising : Netflix has a large and passionate fan base, and the company has an opportunity to monetize this by offering merchandise related to its popular shows and movies. This can include clothing, toys, and other products that appeal to fans.
Interactive content : Interactive content, such as the Black Mirror episode “Bandersnatch,” has become increasingly popular with audiences. Netflix can continue exploring this format and offer subscribers more interactive shows and movies.
Expansion into new areas: Netflix can also explore opportunities in new areas, such as video games or virtual reality. This can help the company diversify its offerings and attract new audiences.
Product placement : Product placement refers to the subtle promotion of brands or products by making them part of the story. Netflix recently tried this in Emily in Paris, season 3, with McDonald’s. ( Fans were not happy, though .)

Netflix faces several threats that could impact its growth and success:

Increased competition : Streaming services such as Amazon Prime Video, Disney+, HBO Max, and Apple TV+ compete for viewers’ attention and subscriptions. The increasing number of options can make it challenging for Netflix to attract and retain subscribers.
Piracy : Online piracy is a significant threat to Netflix’s business model, as users can access pirated content for free. This can lead to lost revenue for Netflix and a decline in its subscriber base.
Changes in content licensing : Netflix relies heavily on licensing agreements with studios and networks to offer popular TV shows and movies. Changes in these agreements or the emergence of new licensing models could impact Netflix’s content offerings and its ability to attract subscribers.
Technological advancements : Technological advancements in streaming technology, virtual reality, and artificial intelligence can disrupt Netflix’s business model and require the company to adapt quickly.
Economic downturn : Economic downturns can impact Netflix’s revenue growth, as consumers may prioritize their spending differently during challenging economic times.
Government regulations : Governments around the world are increasingly regulating the streaming industry. Regulation changes like tax laws or content restrictions could impact Netflix’s operations in certain regions.

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Publix Company: The SWOT Analysis Case Study

The corporate headquarters of the Publix grocery business are located in Lakeland, Florida. Publix is said to have been founded by George W. Jenkins. It is an autocratic family firm, and its shareholders include current and previous members of the Jenkins family and other employees. Publix is present in seven states that comprise the United States Southeastern area. Florida, Georgia, South Carolina, North Carolina, Virginia, Alabama, and Tennessee are among these states. Publix is a multinational firm that serves the public in various ways, such as a pharmacy, food market, culinary training provider in schools, restaurant operator, and retailer of groceries, dairy products, baked goods, and other food-related commodities.

A basic method, such as the SWOT Analysis of Publix, can assist a firm in determining what it does best right now and developing a successful plan for the company’s future. It brings to light the areas in which people withhold information or how competitors may profit. The essential components of Publix’s operation that give it an edge over its competitors in the market are what we consider to be the company’s strengths (Tichenor et al., 2018). The financial condition of a brand, the skilled workforce it employs, the one-of-a-kind quality of its products, and intangible assets such as brand value are all essential variables that contribute to its strengths.

The following is a list of strengths that were identified in the SWOT analysis of Publix: Publix is one of the most important regional supermarket chains in the United States. Over 200,000 people work for the Publix brand across its retail locations (over 1000), cooking schools, corporate headquarters, grocery distribution hubs, and manufacturing facilities (Tichenor et al., 2018). It sells many products, including bakery items, dairy products, meat, seafood, medications, and alcoholic beverages. Shopping at the firm can be much fun, especially for individuals who like having everything they need in one place. Publications such as Fortune 500 have named it one of the most successful retail chains (Tichenor et al., 2018). Publix provides a detailed and extensive special-order service. Some clients obtain free prescriptions from the brand, which helps the brand’s improved identity and reputation.

In order to strengthen its position, even more, there are certain facets of a company’s operation that the company needs to improve. These are the brand’s vulnerabilities. Certain shortcomings can be defined as characteristics the firm does not possess or areas in which the company’s rivals excel more than it does. The limited presence of the Publix Corporation in emerging and developing markets, compared to that of other global competitors, is one of the company’s primary areas of weakness.

The opportunities for any given brand might include many facets of the company’s operations that could use some work to make them more successful. The potential for a brand may be found in various places, including geographical growth, product innovations, and improved communication. Publix opportunities entails moving into new areas with tremendous potential will help the firm grow. Publix’s ability to construct a robust market presence online might be aided by increased advertising on digital and social media platforms. The company’s growth can be facilitated by forming strategic alliances and joint ventures.

Operations of Any company may face threats in the form of variables that have the potential to affect the company adversely. Threatening elements include, but are not limited to, a rise in the activities of competitors, a shift in government policies, and alternative goods or services. The following are the dangers identified in Publix’s SWOT analysis: Publix’s income may suffer when faced with competition from foreign players. If fewer obstacles exist to entry into the retail and grocery industries, more competitors may enter the market. Loss of business can result from a combination of lower switching costs to competing brands and unfavorable company policies.

Publix’s success can be attributed to the company’s strong emphasis on offering exceptional customer service. There are several brands on the market, all competing for the attention of the same customers. The following are the top three competitors for Publix: Walmart, Kroger and Amazon. Since Publix is an employee-owned firm rather than a corporate bully who exploits its employees, it has built a culture and strategy that prioritizes people, whether employees or consumers. It has surpassed all of its competitors in terms of profitability. When it comes to Publix, the workers are the company (Tichenor et al., 2018). Due to their talent, they have the edge over their competition. This is because Publix tries to hire individuals with high standards, a strong desire to make a difference in the world, and a strong sense of teamwork.

This section will offer recommendations to help Publix Super Markets take on strategic directions that will enhance the company’s core strengths and capabilities while reducing its chances of being exposed to risks and threats. These recommendations will be based on the general internal and external analysis that was done for the company. The Publix organization has to establish original marketing strategies that primarily emphasize increased market share.

With this strategic advice, the firm will be able to reach a greater number of customers and make deeper inroads into specific consumer groups. Additionally, the corporation will be able to boost the number of its items that are tried out, consumed, and sold thanks to this technique. It would be beneficial for Publix Super Markets to enter newer geographic regions and market niches. This can be accomplished by penetrating new market niches. As a result of this development, the firm will have access to new customer segments. It does this while also increasing consumption overall and diversifying sources of income.

Tichenor, J. M., Beasley, J., & Subramanian, R. (2018). A business ethics supply chain case study of Publix supermarkets and the coalition of Immokalee Farmworkers’ Fair Food Program . Web.

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SWOT Analysis Case Studies

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Case Study 1: Amazon SWOT Analysis

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Case Study 2: Starbucks SWOT Analysis

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Coca-Cola Detailed SWOT Analysis

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

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SWOT gives you the chance to worry and to dream.

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