SWOT Analysis

🧠 What is SWOT Analysis?

SWOT Analysis is a strategic planning tool used to identify and evaluate Strengths, Weaknesses, Opportunities, and Threats of an organization or an individual.

In simple words, it’s like putting your “pros and cons” against the “chances and risks” in the environment, so you can make better decisions.

For example, a company entering a new market may analyze its strong brand (strength), limited budget (weakness), rising industry demand (opportunity), and existing competitors (threat).

📜 Origin & Key Figures

• Origin: Developed in the 1960s by researchers at the Stanford Research Institute.
• Proponent: Albert Humphrey popularized the framework during his research in the 1960s–70s.
• Major Users: Widely applied by companies like IBM, Google, as well as governments and universities.
• Case: Coca-Cola used SWOT when expanding into new markets, leveraging its “brand strength” and market opportunities while addressing the threat from Pepsi, leading to a differentiated strategy.

🛠 How to Use SWOT

1. Identify Strengths
   • Examples: strong brand, patents, skilled team.
   • Tip: Be specific and measurable.
2. List Weaknesses
   • Examples: lack of funding, weak distribution channels.
   • Tip: Be honest; recognizing weaknesses is the first step to improvement.
3. Spot Opportunities
   • Examples: policy support, emerging markets, new technology.
   • Tip: Focus on actionable opportunities.
4. Evaluate Threats
   • Examples: competition, economic downturn, regulations.
   • Tip: Prepare mitigation strategies.
5. Formulate Strategies
   • Combine S/O (strengths-opportunities), S/T (strengths-threats), W/O (weaknesses-opportunities), W/T (weaknesses-threats) to design strategic actions.

📚 Case Studies

• Case 1 (Business): A startup entering the e-commerce sector.
  • Strengths: young team, innovative product.
  • Weaknesses: limited funding, no distribution network.
  • Opportunities: booming e-commerce, low-cost social media marketing.
  • Threats: giants like Alibaba and JD.com.Lesson: Focus on innovation and low-cost channels while seeking investors.
• Case 2 (Personal Development): John preparing for graduate school.
  • Strengths: strong academic foundation, disciplined.
  • Weaknesses: weak English.
  • Opportunities: target university expanding admissions.
  • Threats: many strong competitors.Lesson: John should capitalize on expanded admissions and strengthen English skills.

⚖️ Pros & Cons

Pros

• Simple and practical.
• Comprehensive view of internal and external factors.
• Widely applicable in business, study, and personal growth.

Cons

• Highly dependent on subjective judgment.
• May be too general without deep analysis.
• Does not directly provide the best solution; needs complementary tools.

📌 FAQs

1. Can SWOT be used for personal development?
   • Yes, it works well for career planning, job applications, and self-improvement.
2. What’s the difference between SWOT and PEST analysis?
   • SWOT analyzes both internal and external factors, while PEST focuses only on external macro factors.

🌍 Application Scenarios

• Work: strategic planning, competitive analysis, product positioning
• Study: career planning, skill improvement
• Life: investment decisions, time management, self-growth

📖 Recommended Resources

Books

• Strategic Management by Michael A. Hitt et al.
• Competitive Strategy by Michael Porter

Other Resources

• Harvard Business Review articles
• Business school case libraries

🔗 Related Methods

• PEST Analysis
• Porter’s Five Forces Model
• BCG Matrix

🎯 Key Takeaway

One-sentence summary:

“SWOT: Match strengths to opportunities, face weaknesses and threats wisely.”