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Keywords: Diagramming, Business Diagram, SWOT analysis, Business 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: Draw.io for Confluence
How to Conduct SWOT Analysis
This page was last edited on 04/12/2021.