This document provides an overview of SWOT analysis, a strategic planning tool used to evaluate a company's strengths, weaknesses, opportunities, and threats. It was developed at Stanford University with funding from Fortune 500 companies over nine years and involved 5000 interviews. SWOT analysis separates internal factors like strengths and weaknesses from external factors such as opportunities and threats. It helps businesses set realistic goals, improve capabilities, leverage strengths to overcome weaknesses, and identify threats that could become opportunities. The analysis compares these internal and external influences in a matrix and identifies strategies to match strengths and weaknesses to opportunities and threats.

1. SWOT Analysis
Prepared by: SIDDHARTH SINGH

2. SWOT Analysis
Analysing a company’s:
• STRENGTHS
• WEAKNESSES
• OPPORTUNITIES
• THREATS

3. History of SWOT Analysis
- Developed at Stanford
- Funded by Fortune 500
companies
- Took 9 years to develop
- Involved 5000 interviews

4. SWOT Analysis is…
… A strategic planning tool that
separates influences on a
business’s future success into
internal and external factors

5. SWOT Analysis allows businesses to…
- Define realistic goals
- Improve capability
- Overcome weaknesses
with strengths
- Identify threats than can
be turned into
opportunities

6. A SWOT Matrix…
…separates and compares internal and
external influencers:
INTERNAL: strengths, weaknesses
External: opportunities, threats

7. A strength can be a competitive advantage
like…
- Superior product
quality
- Lowest price
- Best expertise
- Location

8. A weakness can be a disadvantage such
as…
- A tired brand
- Inferior location
- High overheads
- A lack of R&D

9. An opportunity can be…
- A regulatory or tax change
- A high-profile event
(marketing opportunity)
- An untapped market
- A gap left by a failed
competitor

10. A threat can be…
- Unfavourable regulation
changes
- A new entrant into the
market
- Problems with the
economy
- Market shrinkage

11. Strategies that can come from SWOT
Analysis…
S-O
W-O
S-T
W-T

12. Matching strengths to opportunities
Otherwise known as:
S-O or Maxi-Maxi strategy
Using a strength to
maximise an opportunity

13. Matching weaknesses to opportunities
Otherwise known as:
W-O or Mini-Maxi strategy
Improving capability to
maximise an opportunity

14. Matching strengths to threats
Otherwise known as:
S-T or Maxi-Mini strategy
Minimising a threat with a
strength

15. Matching weaknesses to threats
Otherwise known as:
W-T or Mini-Mini strategy
Minimising weaknesses
and threats at same time
(often last choice)