Skip to content

SWOT Analysis & Its Application

In the realm of business analysis, few tools hold more prominence than SWOT, and businesses globally employ it to enhance their operations and strategize for the future. A SWOT analysis is commonly employed by companies prior to formulating a new strategy, serving as a valuable method to comprehend the current landscape. This analysis aids in making informed decisions that shape future strategies, ultimately contributing to improved decision-making within the business. This post explores the nature of a SWOT analysis and provides insights into successfully implementing one to ensure accuracy and informed decision-making in your business strategy.

What is a SWOT analysis?

If you ask any business owner about the tools they use to understand their business and inform their future strategy, they will likely mention a SWOT analysis. SWOT stands for:


The first element of a SWOT analysis is to examine and identify the strengths of your business. These are the positive attributes of your current business and are internal to your company. To determine your strengths, you should think generally about what you do well and identify the positive internal resources you possess. This involves things like your staff, your policies and procedures, and any internal systems that are critical to the delivery of your business offer. It would help if you also thought about your company’s assets and its advantages over your competition. Your strengths are what stand you apart and are essentially the things that help you earn money as a business.


In direct opposition to strengths, weaknesses are negative internal factors within your business. For some, it can be difficult to identify weaknesses within their business, but it’s a vital step towards improvement. If it’s not apparent to you what your weaknesses are, you should begin by broadly identifying the Factors within your control that you would like to improve in your business. It would be best if you also looked at things your business lacks that your competitors possess. This could be things such as a lack of technological equipment or a lack of accomplished team members in a specific business area. Once you’ve identified your strengths and weaknesses, you can move onto examining the external factors that may influence your business in the future.


The first external element of the SWOT analysis is opportunities. In this sense, opportunities refer to Things outside of your current control that could help your business prosper and thrive in the near future. You could begin this analysis by identifying opportunities in the market that your business could utilize. This might mean that you have to evolve or pivot slightly as a business, but that’s okay. The purpose of identifying opportunities for your business is to support business growth in the future and to improve your offer to your clients and potential customers.


To make the most of opportunities within your market or industry, you must also identify potential threats to your business, so you can create a strategy to manage any threats that may arise. Generally, you have no control over these external threats, but you must identify them to develop a plan for your business to thrive in case they happen.

A business analysis of your threats should begin with understanding who your existing or potential competitors are and what their offer is. It would help if you then thought about external factors that may threaten the existence of your business. These could include things like global pandemics, economic pressures, governmental policies, and so on. As there are so many potential threats to your business, it’s hard to identify all of them, and you should avoid generalizations. Try and only focus on real threats to your business, so you can focus your efforts on combating them successfully.

How to conduct a SWOT analysis

The first step in conducting a SWOT analysis is to prepare a template to detail your information. This is usually in the form of a chart and doesn’t need to be overly complicated. As is the case with many business analysis tools, you should try and include as many stakeholders as possible so that you will benefit from various opinions and a range of expertise. Brainstorming techniques during team meetings is an effective way of kick-starting a SWOT analysis.

After identifying and prioritizing the outcomes of your SWOT analysis, you can leverage them to craft tailored strategies for your business. The true essence of business analysis lies in optimizing your existing capabilities and capitalizing on external factors that shape your business environment. When incorporating your SWOT analysis into the formulation of business strategies, precision and realism should guide the creation of specific business objectives.

Regardless of the approach you adopt in integrating a SWOT analysis into your company’s strategy, staying ahead of competition and thriving in the business landscape of the future remains imperative.

I hope you enjoy reading this blog post.
If you want my team at DoerHRM to help you build a winning team for your company, just click to speak with our KPI consultant.

How to build

winning teams with KPI?

Hey, I’m Shone Fone Ng. I’m determined to make a business grow. My only question is, will it be yours?

About Shone Fone

Shone Fone is a Serial Entrepreneur for 10 SMEs since 1997, businesses ranging from equipment supply, manufacturing, equipment maintenance and ISO 17025 calibration service, HRM software development and training. He also an award winning entrepreneur of Asia Pacific Top Excellence Brand – Book of The TOP Recognition.

How to build

winning teams with KPI?

Hey, I’m Shone Fone Ng. I’m determined to make a business grow. My only question is, will it be yours?

I hope you enjoy reading this blog post.
If you want my team at DoerHRM to help you build a winning team for your company, just click to speak with our KPI consultant.

Related HRM KPI & OKR Performance Management Articles

Get a free, full-feature trial of
DoerHRM KPI Performance Management Software for 14 days

No credit card required.

Start using DoerHRM today!

Hi Managers, do your employees have
signs of low motivation?

Through a 30 min FREE consultation,
know step-by-step guide to learn

Have a 1-on-1 free consultation
with our
DoerHRM KPI Expert

Free eBook - The KPI & OKR Strategy to Grow Business Quickly

Download Free Ebook now!

Please check your email for the download link!