SWOT Analysis

What is a SWOT-analysis?

A SWOT-analysis is an established analysis and evaluation of a company’s situation - internal and external. It can be used to form the basis for the analysis of a company’s business base and market position. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

Usually, you would set it up in a matrix with different sections to make it more manageable. Here you can fill in the conclusions of your brainstorming and analysis in simple bullet points. See the template below.

One of the advantages of doing a SWOT-analysis is that you will have to consider both the company’s strengths and weaknesses. By doing this you should be able to get a better picture of the company’s position. The SWOT-model is often used when you intend to enter a new market, launch a new product or in combination with a due diligence. You can also use SWOT-analysis as a basis for a marketing campaign, a common tactic used by businesses in their marketing strategies. Thus, you can use it for all kinds of strategizing.

Some consider it to be a little too rigid and schematic to conduct an analysis. However, it can be a fantastic tool to gain an initial overview before doing an in-depth evaluation.

Internal situation in a SWOT-analysis

When analyzing the internal situation in a SWOT-analysis you will usually evaluate the company’s financial and human resources. This includes looking at the company’s technological capacities, products, concepts, know-how and intellectual properties.

In looking at the internal situation during a SWOT-analysis you will both consider the positive things like the company’s impact, equity, assets, skills and brand. However, you will also consider what skills you lack, bad publicity and where you lack liquidity.

In contrast to the external situation you will look at the company’s own welfare. In the external situation you will however take a closer look at the environment the company operates in.

External situation in a SWOT-analysis

When looking at the external situation you will consider opportunities and threats in relation to the market and environment. Here you will evaluate the company’s suppliers, cooperation partners and customers including the legal and financial social circumstances the company operates in. Last but definitely least, you will analyze the competition. This means to explore what you can and can not in relation to your competition on the market.

Hence, you identify the business opportunities the market offers you. At the same time, you take a closer look at obstacles and threats to the company’s continued operations, survival and growth.

All in all, the SWOT-analysis is used to: 1. capitalize on your strengths. 2. protect yourself against your own weaknesses. 3. find new opportunities. 4. identify obstacles and threats with regard to eliminating them or protecting yourself against them.