What is SWOT Analysis?

SWOT analysis is an important tool that shows a company, organization, or individual's current situation. It's something I strongly recommend everyone knows and applies because it's performed before taking a strategic step and makes the current state visible.

So, what are the points that make it so important, or what contributes to its importance? Firstly, its ease of implementation is a key feature. All that’s needed is to provide genuine and honest answers to the questions within the analysis. Another crucial point is that it reveals not only environmental interactions but also the effects of internal dynamics.

To avoid disrupting the rhythm of the text, I'll use the term implementer to refer to the party conducting the analysis instead of repeatedly saying companies, corporations, organizations, and individuals.

Understanding the 4 Elements of SWOT

A SWOT analysis focuses on 4 concepts:

• Strengths
• Weaknesses
• Opportunities
• Threats

Each concept has its own set of questions.

Strengths

This concept refers to what implementer possesses, knows, and/or learns through experience.

• What advantages does implementer have that sets them apart?
• Which skills or resources are stronger than those of their competitors?
• How do external observers evaluate implementer's strengths?
• In what areas does implementer create value?
• Which achievements or experiences could provide future advantages?
• What characteristics does implementer have that make a difference in their surroundings?

Weaknesses

Conversely to Strengths, this concept refers to what the implementer currently lacks, doesn't know, and/or hasn’t experienced.

The answers given to the questions in this concept fall into my assessment criteria as being of a second-level risk. I will explain the details of this during the analysis phase.

• What areas does the implementer need to improve?
• Where are there deficiencies in knowledge, experience, or resources?
• How do external observers view the implementer's weaknesses?
• Which processes or behaviors limit the implementer’s performance?
• What resources have been identified as missing but not yet addressed?
• Under what circumstances do weaknesses have the potential to create risk?

Opportunities & Threats

It makes more sense to me to explain these two concepts together because they are both largely beyond the implementer's direct control and depend on environmental factors.

Even though their questions differ, they’re connected.

Opportunities

• What developments in the market, industry, or environment could create advantages for the implementer?
• In what new area can strengths be leveraged?
• What opportunities in the implementer’s sphere of influence have yet to be explored?
• What potential do new technologies, business models, or trends offer?
• What benefits could strategic partnerships or networks provide?
• What areas or opportunities are competitors overlooking?

Threats

• What external factors could negatively impact the implementer's operations?
• In what areas are competitors or similar actors in a more advantageous position?
• What risks do economic, technological, or legal changes pose to the implementer?
• How do existing weaknesses exacerbate these threats?
• Which events beyond the implementer’s control could slow progress?
• What measures should be taken to mitigate the impact of these threats?

How to Evaluate SWOT Findings

Before moving on to evaluation, I want to issue a small warning. A SWOT analysis is an effective tool, but it's never a magic wand. It simply makes the implementer's current situation visible. The answers that come out of a SWOT analysis must always be interpreted and analyzed using other appropriate tools.

So, what will we do in the evaluation phase? Essentially, the given answers will be grouped and prepared for the analysis stage.

Internal & External Factors

This grouping is a fundamental method derived from the definition of a SWOT analysis. According to this method, strengths and weaknesses are used as internal factors, while opportunities and threats are used as external factors.

The purpose of this grouping is to distinguish between internal factors that the implementer controls and external factors they have less control over. This allows for more focused action plans in the prioritization and analysis stages.

Helpful & Harmful Factors

This is a grouping method I learned later on. I wanted to include it in the application because it makes the implementer's "pain points" much more visible.

I find that this grouping should be particularly examined during the analysis phase. Because failing to improve something or not taking an action can lead to far worse consequences for the implementer.

Key Tips for Effective SWOT Analysis

Actually, I can say a circular reference for analyzing the results of a SWOT analysis. Analyzing an analysis sounds funny to most people. But there are many examples in the sector. The most well-known ones are Blackberry and Nokia. No need to explain the story, or if needed, please write it in the comments, and I'll explain in another post what those two brands experienced.

Anyway, let’s get to the analysis part. I will explain how the analysis phase works in more detail in a separate post, but I need to make the explanations mentioned above.

Weaknesses and harmful factors are risky parts that should be particularly examined. Because if the implementer doesn't transform their weaknesses, one day they could become internal threats. Unlike external threats, these threats can create a silent and much stronger impact. From my experience, failing to transform weaknesses can lead to a scenario that I'd call an epic-fail.

In addition, the harmful factors are another part that the implementer should pay attention to. I guess, for this part, the "we don't need any more enemies, we're enough for each other" sentence matches best. Because what the implementer lacks, doesn't know, and/or hasn’t experienced can prepare their downfall. It needs to be properly transformed in this area.

Important Points

A SWOT analysis is a simple yet effective tool. There are some points that the implementer should pay attention to so that the results are as effective as wanted.

If a SWOT analysis is implemented within an organization, company, or structure, it's essential to include different roles and titles representing that structure in the process. This can make the structure more transparent.

Another important point is honesty. Unrealistic or overly optimistic answers will reverse the effectiveness of the SWOT analysis. This is an approach to be avoided. Therefore, honest and genuine answers are essential for a SWOT analysis. If you're applying it individually, do yourself a favor and be honest with yourself.

But if it’s implemented within an organization, company, or structure, managers must provide the necessary environment of trust and transparency. If that isn’t possible, anonymous techniques or tools can be used.

Finally, what is important I want to mention is sustainability. Performing a SWOT analysis periodically is valuable. This allows you to see and evaluate the results of the actions taken between two analyses. This will both motivate and educate.

Closing Remark

A SWOT analysis is a simple and effective tool to perform. I recommend everyone experience it at least once if they haven't already. And I’d be happy if you reflected on your own findings with me.

If you are curious about my analysis method, you can refer to my other articles about SWOT Analysis. If you want to contribute, you can share your own evaluation method with me, forward this article to people who should read it, or leave your likes and comments.

Resources & Further Reading

Here are some resources I used while preparing this article, and which I recommend for those who want to understand SWOT analysis in more depth:

• Wikipedia – SWOT Analysis - The definition and historical origins of SWOT analysis.
• Harvard Business Review – Are You Doing the SWOT Analysis Backwards? - A critical, modern perspective on SWOT analysis.
• MindTools – SWOT Analysis: Discover New Opportunities, Manage and Eliminate Threats - Steps for implementing a SWOT analysis and examples.