Analysis Without Paralysis: 10 Tools to Make Better Strategic Decisions

Chapter 11. SWOT Analysis

Description and Purpose

SWOT (strengths, weaknesses, opportunities, and threats) analysis is used to evaluate the fit between a company’s internal resources and capabilities (that is, its strengths and weaknesses) and external possibilities (that is, opportunities and threats).

A company has a greater degree of practical control over its internal environment—which includes resources, culture, operating systems, staffing practices, and the personal values of the company’s managers. These areas are generally subject to the discretionary decision making of the organization’s executives.

A company has lesser control over its external environment—which includes market demand; the degree of market saturation; government ...