SWOT Analysis

beginner2 min readmanagement · business · psychology

SWOT organizes an assessment into Strengths, Weaknesses, Opportunities, and Threats. Use the categories to clarify a project’s position, then decide which issues call for action. The book traces its origin to a study from the 1960s.

THE IDEA

SWOT Analysis

How to Find the Right Solution

With SWOT analysis, you evaluate the Strengths, Weaknesses, Opportunities and Threats identified in a project. The book traces the technique to a Stanford University study from the 1960s which analyzed data from Fortune 500 companies. In the book’s account, the study found a 35 percent discrepancy between the companies’ objectives and what was actually implemented. The problem was not that the employees were incompetent but that the objectives were too ambiguous. Many employees didn’t even know why they were doing what they were doing. SWOT was developed from the results of the study to help those involved in a project to gain a clearer understanding of it.

It is worth taking the time to think about each step of the SWOT analysis rather than just hastily fill it out. How can we emphasize our strengths and address our weaknesses? How can we maximise opportunities? How can we protect ourselves against threats?

SWOT can organize questions about business or personal decisions. Filling in the categories is a starting point; the assessment still needs evidence and a plan of action.

If you’re not failing, you’re not trying hard enough. — Gretchen Rubin

Think back to a big project in your life and about how you would have filled in a SWOT diagram at the time. Compare that with how you would fill it in today.

When to use it

Evaluating a business strategy or project plan before implementation.
Personal career planning: assess your skills, gaps, job market trends, and potential obstacles.
Competitive analysis: understand your organization's position relative to competitors.
Decision-making in ambiguous situations by clarifying internal and external factors.

FROM THEORY TO EVERYDAY LIFE

In practice

Reflecting on a past project

Consider a big project from your life, such as launching a new product at work. At the time, you might have identified strengths like a strong team, weaknesses like tight deadlines, opportunities like a growing market, and threats like competitor activity. Today, with hindsight, your assessment might differ, highlighting the importance of honest self-evaluation.

Applying SWOT to a marketing campaign

A company launching a new product uses SWOT to identify strengths (brand reputation, skilled team), weaknesses (limited budget, lack of market data), opportunities (new market trends, social media reach), and threats (established competitors, changing regulations). This clarity guides strategic decisions.

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A MOMENT TO REFLECT

Put it to work.

How can you emphasize your strengths and compensate for your weaknesses in your current project?
What opportunities are you currently overlooking, and how can you maximize them?
What are the biggest threats to your success, and how can you protect against them?