SWOT Analysis

SWOT analysis can be used to assess the internal and external position of an organization plus strategic development, competitor evaluation, market assessment etc.

This model consist of four points strengths and weaknesses (related to internal environment of the firm or organization), and opportunities and threats (related to external environment of the organization i.e. changes in PESTEL and PORTER’s five forces model).


  • What are the unique skills and competencies firm or organization have over its competitors.
  • Availability of surplus funds to support plans or projects.
  • Strong brand name in the industry.
  • Skilled labour.
  • Location advantage.


  • Due to Funds shortage firm may not exercise its strategy.
  • Lack of skills and competencies as compared to competitors.
  • Labour is not very competent
  • Weak brand image in the market.
  • Lack of creativity, managerial depth and talent.


Change in external environment (PESTEL and Porter) may lead to some of opportunities and threats for the business.

  • Growing demand in a new market in which firm can make investment.
  • Economic boom in the country may lead to high demand of product and services.
  • Favorable laws and regulations introduce by the government.


  • New Government may introduce adverse laws and regulations.
  • New competitor may enter in the industry.
  • Existing competitor may start price war.
  • Adverse taxation policies.
  • Increase in bargaining power of customers and suppliers.
  • Adverse demographic change in the country where firm is operating.


By using an appropriate Business strategy

  • Firm should try to overcome its weaknesses and convert these to strengths.
  • Strengths should be used to avail opportunities.
  • Threats should be converted to opportunities.