Introduction

A SWOT analysis is about identifying internal strengths and weaknesses, and (often most usefully for planning) external threats and opportunities.

Benefits and uses

This sort of analysis is used to:

1. Counter your natural tendency to focus on current problems and fail to anticipate important developments that can have a significant impact on the business.

   See SWOT analysis by segment as a key part of your Marketing Planning.
   
   

2. Act as a way to drive your strategy (see this e-marketplace SWOT as a key part of your Digital Strategy)

There are three stages:

1. An internal analysis of your internal environment to uncover the organisation’s/brand's particular:
   
   
   • strengths and
   • weaknesses.

   Review your assets, competences and resources.
   
   

2. An external analysis of your external environment to uncover the potential:
   
   
   • threats and
   • opportunities.
     
     
3. Consider visualising and presenting your SWOT on a perceptual map.
   
   

(See also e-marketing SWOT strategy development)

When to use a SWOT analysis:.

1. When you have a very limited amount of time to address a complex strategic situation.
   
   
2. When you are examining a particular market segment (i.e. a group of customers with the same or similar needs).

   Doing a SWOT of a larger group just means that you end up with broad statements and recommendations without much strategic value.