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Keywords: Diagramming, Business Diagram, SWOT analysis, Business analysis 

SWOT Analysis

A SWOT analysis (also known as SWOT matrix) is a strategic planning technique that is used to assist a person or organization to identify strengths, weaknesses, opportunities, and threats (SWOT) to evaluate a company's competitive position or project planning. A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization (for-profit enterprise, governments, NGOS, SME, etc.), its initiatives, or an industry. The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts.

The primary object of a SWOT analysis is to help organizations develop a full awareness of all internal and external factors involved in making a business decision. Internal factors include strengths and weaknesses and external factors include opportunity and risks. 

Individuals that employ SWOT analysis often ask and answer questions to generate meaningful information for each SWOT category. This method was created in the 1960s by Albert Humphrey of the Stanford Research Institute, during a study conducted to identify why corporate planning consistently failed. Since its creation, SWOT analysis has become one of the most useful tools for business analysts.

Generic sample of a SWOT matrix diagram source: for Confluence

SWOT is an acronym for the four parameters and it is usual presented in a 2x2 grid or diagram. The degree in which the internal environment of the firm matches its external environment is known as strategic fit. Based on the identified SWOTs, business analysts should consider whether the objective is attainable. If the objective is not attainable,  a different objective should be selected and the process repeated. 

Elements of a SWOT Analysis

Internal factors are considered the strengths and weaknesses. The factors may include personal, financial, and manufacturing capabilities. External factors include macroeconomics, technology change, or sociocultural changes.

There are several questions that you can ask in order to identify the internal and external factors your business or company may encounter.


Strategy Building

SWOT analysis can be used to create an organizational or business strategy. It is important to identify the relationship between internal and external factors.

Matching and Coverting

The competitive advantage of a business can be found by matching strengths and opportunities. Furthermore, weaknesses or threats can be converted to strengths or opportunities.

Corporate Planning

Corporate planning is crucial when it comes to developing strategies that enable an organization to achieve its objective. SWOT analysis allows for the analysis of internal and external factors.


In marketing, it is important to assess each competitor in the market, focusing especially on each competitor's relative strengths and weaknesses using SWOT analysis. It is often necessary to invest in research to perform accurate market analysis.

How to Conduct SWOT Analysis

How to Create a SWOT Analysis

There are several ways to create a SWOT Analysis. Today, SWOT analysis are created using diagramming tools such as app, a software tool sponsored by Seibert Media. Learn how to create a SWOT analysis using and find more information through the blog or youtube channel for helpful tips and tricks.

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This content was last updated on 04/21/2021.

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