Management Notes

Reference Notes for Management

SWOT Analysis

Strengths, Weaknesses,Opportunities & Threats

Concept of SWOT Analysis

A SWOT analysis measures the strengths and weaknesses of an organization. By conducting a SWOT analysis, the organization can identify areas for improvement and areas for focus.

Strategic decisions can be made by understanding an organization’s strengths and weaknesses. The purpose of strategic planning is to develop the vision, mission, objectives, strategies, and policies of a company.

An environmental analysis begins with finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses. Therefore, environmental analysis is used to develop strategic alternatives.

Basically, SWOT stands for strengths, weaknesses, opportunities, and threats for a company. Combined with the strategic capability of an organization, a SWOT analysis identifies critical issues that may impact the development of the organization’s strategy.

Hence, it is also called situation analysis. In formulating a strategy, SWOT analysis plays an important role.

Structured information is presented about the external environment and internal environment. We identify and evaluate environmental opportunities and threats.

In a similar way, strengths and weaknesses can be found through an analysis of resources or internal processes.

In the final step, we develop possible strategic alternatives by matching the external components with the internal capabilities.

Components of SWOT Analysis



The strength of the organization lies in its ability to exploit its positive internal characteristics to achieve its objectives. Organizations can perform better than their competitors if they are capable of doing so.

Utilizing necessary resources effectively can help an organization build capability. Resources, structure, objectives, policies, and cultures are internal components that determine a company’s strength.

When the following conditions are met, an organization is considered strong.

  • Having a strong strategy
  • A sound financial position
  • Brand recognition that is strong
  • A leader in the market
  • Technological advancements
  • A skilled workforce
  • High product promotion.
  • An effective distribution channel
  • Efficiencies in production



Weakness in an organization is an internal characteristic that may inhibit or restrict its performance. This refers to the organizations’ weaker capability in comparison to their competitors.

The internal environment of an organization also determines the organization’s weakness.

Resources and competencies are insufficient, resulting in weakness. Organizations become less competitive as a result.

There are certain conditions that lead to an organization becoming weak.

  • There is no clear goal
  • A weak strategy
  • An abysmal financial situation
  • Deficiency of skilled labor
  • Product of inferior quality
  • Promotions are weak
  • Technology that is no longer relevant



A company can achieve strategic competitiveness by exploiting opportunities in the general environment.

Business opportunities result from favorable environmental conditions. Competitive advantages are exploited by business activities.

The following conditions present opportunities for an organization.

  • Development of new products
  • Expansion of the market
  • The entry into a new industry
  • Technological advancements and economic growth
  • The development of society



An environment that presents a threat can interfere with an organization’s efforts to be competitive. A business’s ability to achieve its goals is hindered by threats. Environmental threats are mitigated through business activities.

Business threats can result from the following conditions.

  • A new firm has entered the market
  • Resources are insufficient
  • Lack of commitment among workers
  • Customers’ needs and preferences have changed
  • An unfavorable legal and political environment

Importance of SWOT Analysis

SWOT analysis is used to assess the relevance of an organization’s current strategy and its strengths and weaknesses to a changing environment.

In addition, it can be used to assess whether a company has unique resources or core competencies that can be exploited.

A strategy is defined as the sum of opportunities divided by capacities. If a company cannot capitalize on an opportunity by itself, the opportunity has no real value.

Companies identify their distinctive competencies through SWOT analyses. A lack of appropriate resources and competencies restricts a company’s ability to take advantage of opportunities.

It has been proven that SWOT analysis is the most enduring analytical technique used in strategic management. Strategic alternatives can be developed using this framework.

Some of the major importance of SWOT Analysis is as follows:

Importance of SWOT Analysis

a) Fit with the strategic objectives:

By analyzing SWOT, we can ensure strategic alignment between external opportunities, internal strengths, and external threats, while working to identify and overcome internal weaknesses, threats, and weaknesses.

Organizations with strategic fit have a competitive advantage. By implementing an effective strategy, an organization aims to gain strategic fit.

b) Opportunity analysis:

A favorable environment is what creates opportunities. Analyzing SWOT helps to identify opportunities that the organization can take advantage of.

Proper planning and resources can be used to exploit the opportunities. As a result, an organization becomes more competitive and achieves its goals.

c) Assess threats:

Organizations face a number of threats, but the most common are those that come from outside the organization. A threat analysis in an organization can help identify and mitigate these threats.

Trends and events in the economy, society, culture, demographics, environment, politics, law, technology, and competitive environment that could cause the organization significant harm are considered threats.

Businesses are threatened by several factors, including an increase in competitors, new regulations, a slow market growth rate, and a high level of power held by consumers and suppliers.

In order to maximize competitiveness, businesses strive to reduce or eliminate threats. In order to identify and mitigate business threats, SWOT analyses are performed.

d) Strengths analysis:

Efficiencies and effectiveness are the strengths of an organization. They are found in the areas of management, marketing, finance/accounting, production/operations, research, and development.

A strategic management activity involves identifying and evaluating organizational strengths in functional areas. Strengths are capitalized on by organizations in their strategies. Strengths can be analyzed using SWOT analysis.

e) Identify weaknesses:

A weakness can be defined as an organization’s incapacity compared to its major competitors. There are weaknesses when there are insufficient resources, plans, and skills.

In order to minimize weaknesses, organizations formulate strategies. Internal weaknesses can be identified and eliminated using a SWOT analysis.

SWOT Analysis Of Famous Companies


  1. 23Andme SWOT Analysis 
  2. Adidas SWOT Analysis 
  3. 3M SWOT Analysis 
  4. Adobe SWOT Analysis 
  5. ADT SWOT Analysis
  6. Affirm SWOT Analysis 
  7. Aflac SWOT Analysis
  8. Afterpay SWOT Analysis 
  9. Airstream SWOT Analysis 
  10. Akamai SWOT Analysis 
  11. Aldi SWOT Analysis 
  12. Allbirds SWOT Analysis 
  13. Amazon Prime SWOT Analysis
  14. AMC SWOT Analysis 
  15. AMD SWOT Analysis
  16. American Airlines SWOT Analysis
  17. American Eagle SWOT Analysis
  18. American Express SWOT Analysis
  19. Anheuser Busch SWOT Analysis
  20. AppDynamics SWOT Analysis
  21. Apple’s SWOT Analysis
  22. Aramark SWOT Analysis
  23. ASML SWOT Analysis
  24. ASOS SWOT Analysis
  25. AT&T SWOT Analysis
  26. Autodesk SWOT Analysis
  27. AutoZone SWOT Analysis
  28. AWS SWOT Analysis
  29. Bank Of America SWOT Analysis
  30. Barnes And Noble SWOT Analysis
  31. Betterment SWOT Analysis
  32. Beyond Meat SWOT Analysis
  33. Blackrock SWOT Analysis
  34. Bloomberg SWOT Analysis
  35. Blue Apron SWOT Analysis
  36. Blue Nile SWOT Analysis
  37. BMW SWOT Analysis
  38. Boeing SWOT Analysis
  39. Boomi SWOT Analysis
  40. Box SWOT Analysis
  41. Boxabl SWOT Analysis
  42. Butcherbox SWOT Analysis
  43. Capital One SWOT Analysis
  44. Cardinal Health SWOT Analysis
  45. Carmax SWOT Analysis
  46. Carvana SWOT Analysis
  47. Casper SWOT Analysis
  48. CDW SWOT Analysis
  49. Cerner SWOT Analysis
  50. Chick Fil A SWOT Analysis
  51. Chipotle SWOT Analysis
  52. Citrix SWOT Analysis
  53. ClassPass SWOT Analysis
  54. Cloudflare SWOT Analysis
  55. Comcast SWOT Analysis
  56. Costco SWOT Analysis
  57. Coursera SWOT Analysis
  58. Craigslist SWOT Analysis
  59. Credit Karma SWOT Analysis
  60. Crowdstrike SWOT Analysis
  61. CVS SWOT Analysis 
  62. Darktrace SWOT Analysis
  63. Datadog SWOT Analysis 
  64. Verizon SWOT Analysis
  65. Under Armour SWOT Analysis
  66. Johnson and Johnson SWOT Analysis
  67. Nintendo SWOT Analysis
  68. Peloton SWOT Analysis
  69. Patagonia SWOT Analysis
  70. PepsiCo SWOT Analysis
  71. Wells Fargo SWOT Analysis
  72. Goldman Sachs SWOT Analysis