Notes: SWOT Analysis

SWOT ANALYSIS NOTES (TRANSCRIPT-BASED)

• What SWOT analysis is

  • A framework for strategic analysis that helps managers assess the current situation facing an organization. It provides a structured way to look at internal and external factors that affect success. (Source: SWOT analysis as a situational tool)

  • Purpose: to inform strategy development by identifying internal strengths and weaknesses and external opportunities and threats.

• Categories of SWOT analysis

  • Strengths (internal, positive factors): characteristics that give the business an advantage over others; should be built upon where possible.

  • Weaknesses (internal, negative factors): characteristics that may put the business at a disadvantage; should be reversed or mitigated where possible.

  • Opportunities (external, positive factors): external conditions that could be exploited to gain competitive advantage; should be exploited where possible.

  • Threats (external, negative factors): external factors that could challenge performance; should be mitigated where possible.

• SWOT in practice: developing business strategies based on SWOT analyses

  • Four basic strategies emerge from a SWOT analysis (after mapping Strengths, Weaknesses, Opportunities, Threats):

  • Offensive strategies (leverage Strengths and Opportunities)

  • Defensive strategies (use Strengths to counter Threats)

  • Reorientation strategies (address Weaknesses and Opportunities)

  • Survival strategies (address Weaknesses and Threats)

• How SWOT is evaluated: advantages and disadvantages

  Advantages:

  • Quick and simple to construct

  • Wide range of applications

  • Helps determine market position and potential responses

  • Aids in reducing risks by clarifying internal/external factors

    Disadvantages:

  • Can be simplistic

  • Static model; may not capture dynamic changes over time

  • Decision-makers may be unwilling to face weaknesses and threats

  • Cannot be used in isolation as the sole basis for decisions

• Quick reference highlights

  • Key definitions: Strengths are internal positives; Weaknesses internal negatives; Opportunities external positives; Threats external negatives

  • Four strategies in a SWOT-to-action flow: Offensive, Defensive, Reorientation, Survival

  • Common limitations to watch for: oversimplification, static view, potential bias when focusing on only positives or ignoring threats

• Summary takeaway

  • A well-executed SWOT analysis identifies what a company can leverage internally, what it must fix, what external opportunities to seize, and what external threats to mitigate, enabling the formulation of coherent strategies across offensive, defensive, reorientation, and survival pathways.