SWOT Analysis

SW

Strengths

Opportunities

Weaknesses

Threats

OT

INTRODUCTION
(SWOT) Matrix
Strengths-WeaknessesOpportunities- Threats

The technique is credited to Albert Humphrey,

who led a convention at Stanford University in
the 1960s and 1970s using data from Fortune
500 companies.
Haberberg (2000)
Igor Ansoff (1987)
Weihrich (1982)
Dealtry (1992)
Wheelan and Hunger (1998)

INTRODUCTION

The SWOT Matrix is an important matching tool

that helps managers develop four types of
strategies.
A SWOT analysis generates information that is
helpful in matching an organization or groups
goals, programs, and capacities to the social
environment in which it operates.
It is an instrument within strategic planning.
When combined with dialogue it is a
participatory process

SWOT Analysis
HELPFUL

FACTORS

STRENGTHS

To achieving the objectives

WEAKNESSES

SWOT
Analysis

FACTORS

EXTERNAL

INTERNAL

To achieving the objectives

HARMFUL

OPPORTUNITIES

THREATS

PRIMEFACT CHECKLIST

SWOT
Analysis

ICEDRIPS ANALYSIS

FOUR TYPES OF
STRATEGIES

SO (STRENGTHS OPPORTUNITIES)
WO (WEAKNESSES OPPORTUNITIES)
ST (STRENGTHS THREATS)
WT (WEAKNESSES - THREATS)

1.
2.
3.
4.
5.

EIGHT STEPS IN SWOT

MATRIX:

List the firms key external opportunities

List the firms key external threats.
List the firms key internal strengths.
List the firms key internal weaknesses.
Match internal strengths with external
opportunities and record the resultant SO
Strategies.
6. Match internal weaknesses with external
opportunities, and record the resultant WO
Strategies.
7. Match internal strengths with external threats,
and record the resultant ST Strategies.
8. Match internal weaknesses with external
threats, and record the resultant WT Strategies.

APPLICATION IN
RESEARCH

A SWOT analysis may be

incorporated into the strategic
planning model.
Strategic Planning has been
the subject of much research.

OTHER USES OF SWOT

SWOT analysis may be used in any

decision-making situation when a desired
end-state (objective) has been defined.
SWOT analysis may also be used in precrisis
planning
and
preventivecrisis
management.
SWOT analysis may also be used in
creating
a
recommendation
during
aviability study/survey.

LIMITATIONS

Does not show how to achieve a

competitive advantage, so it must not
be an end in itself
SWOT is a static assessment (or
snapshot) in time
May lead the firm to overemphasize a
single internal and external factor in
formulating strategies