Title: SWOT Analysis
Author: Kriko
Published: Apr 1, 2021
Last modified: Jul 11, 2026

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# SWOT Analysis

**SWOT analysis** is a strategic analysis method used to evaluate the strengths,
weaknesses, opportunities and threats of a person, organisation, brand or business.
The term SWOT comes from the words Strengths, Weaknesses, Opportunities and Threats.
This method helps clarify the current situation and supports more informed decisions
for the future. It can be applied to companies, projects, products, brands or individual
career planning.

In SWOT analysis, strengths and weaknesses are considered internal factors. Strengths
may include resources, capabilities, brand value, human capital, technological infrastructure
or operational skills that give the business an advantage over competitors. Weaknesses
refer to areas that require improvement, resource gaps, process problems or issues
in the customer experience. These two categories help identify factors that are 
largely within the organisation’s control.

Opportunities and threats are evaluated as external factors. Opportunities may include
market growth potential, emerging customer needs, technological developments, regulatory
changes or weaknesses among competitors. Threats may include economic uncertainty,
strong competitors, changing customer expectations, supply chain issues, legal restrictions
or industry risks. These factors are not fully controlled by the business, but they
should be considered when developing strategy.

SWOT analysis can remain superficial if it is based only on assumptions or personal
opinions. More reliable results require sales data, customer feedback, market research,
competitor analysis, financial indicators and operational performance data. This
makes it possible to identify strengths and weaknesses more realistically. Opportunities
and threats should also be supported by sector and market evidence rather than broad
generalisations.

When preparing a SWOT analysis, the subject of the analysis should first be clearly
defined. This may be a company’s overall strategy, a new product launch, brand positioning,
market entry plan or personal career objective. Internal factors are then listed
under strengths and weaknesses, while external factors are listed under opportunities
and threats. Each point should be written as clearly and actionably as possible.

For example, a business may have strong sales performance but weak customer support
processes. In this case, high sales volume can be considered a strength, while communication
issues with customers can be considered a weakness. A growing customer preference
for digital channels may create an opportunity, while economic uncertainty or increasing
competition may represent a threat. Based on this analysis, the business can combine
strengths with opportunities, reduce weaknesses and develop measures against threats.

A well-applied **SWOT analysis** helps organisations assess their current situation
more systematically. However, a SWOT table is not a strategy by itself; it is a 
starting point for strategy development. After the analysis, priorities should be
defined, action plans should be created for each area and results should be reviewed
regularly. In this way, SWOT analysis can become a practical and effective management
tool that supports decision-making.

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