Free Download SWOT Analysis Examples PDF: Amazon, Apple, Toyota, and Starbucks
What is SWOT Analysis?
According to Wikipedia define SWOT analysis (or SWOT matrix) is a strategic planning and strategic management technique used to help a person or organization identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. It is sometimes called situational assessment or situational analysis. Additional acronyms using the same components include TOWS and WOTS-UP.
This technique is designed for use in the preliminary stages of decision-making processes and can be used as a tool for evaluation of the strategic position of organizations of many kinds (for-profit enterprises, local and national governments, NGOs, etc.).
It is intended to identify the internal and external factors that are favorable and unfavorable to achieving the objectives of the venture or project. Users of a SWOT analysis often ask and answer questions to generate meaningful information for each category to make the tool useful and identify their competitive advantage.
SWOT has been described as a tried-and-true tool of strategic analysis but has also been criticized for its limitations, and alternatives have been developed.
SWOT analysis internal and external factors
Strengths and weaknesses are usually considered internal, while opportunities and threats are usually considered external. The degree to which the internal strengths of the firm match with the external opportunities is expressed by the concept of strategic fit.
Internal factors are viewed as strengths or weaknesses depending upon their effect on the organization’s objectives. What may represent strengths with respect to one objective may be weaknesses (distractions, competition) for another objective.
The factors may include personnel, finance, manufacturing capabilities, and all of the marketing mix’s 4Ps. External factors include macroeconomics, technological change, legislation, and sociocultural changes, as well as changes in the marketplace.
A number of authors advocate assessing external factors before internal factors.
Modern SWOT Analysis Example with Amazon and Wal Mart
Want to learn how to do a SWOT analysis for better strategic planning?
Use our modern approach to SWOT analysis by taking the standard Strengths, Weaknesses, Opportunities, and Threats and putting them into a story format. The standard SWOT Analysis has major limitations – it’s internally focused and typically doesn’t create the business insights needed to drive results. This method will help create better engagement with leadership and provides a clearer picture of how to achieve strategic objectives.
In Part 1, we tear down the classic SWOT tool and rebuild it using a SWOT Analysis of Amazon and its competition with Walmart.
Part 2 is the SWOT Fusion Matrix Approach, focused on developing actionable insights from SWOT