SWOT analysis (alternatively SWOT Matrix)
is an acronym for strengths, weaknesses, opportunities, and threats and is a structured planning method that evaluates those four elements of an organization, project or business venture. A SWOT analysis can be carried out for a company, product, place, industry, or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Some authors credit SWOT to Albert Humphrey, who led a convention at the Stanford Research Institute in the 1960s and 1970s using data from 500+ companies.
SWOT
Below is an example SWOT analysis of a market position of a small management consultancy with a specialism.
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Reputation in marketplace | Shortage of consultants at operating level rather than partner level | Well established position with a well-defined market niche | Large consultancies operating at a minor level |
| Expertise at partner level in HRM consultancy | Unable to deal with multidisciplinary assignments because of size or lack of ability | Identified market for consultancy in areas other than HRM | Other small consultancies looking to invade the marketplace |