What is SWOT
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Contents |
Abstract
This article will be presenting the tool SWOT and the main points of SWOT will be covered alongside with an introduction on how to apply SWOT. Moreover, the strength and weaknesses of this tool will also be presented so it can be taken into consideration when using the tool. SWOT can be applied in many different areas whether it is business strategy or market research but is especially used within marketing. (1) SWOT is originally invented by an American called Albert Humphrey, he was a business and management consultant, during his time in Standford Research Institute(2), he created a method for planning, but it was originally called SOFT and not SWOT. Many companies when facing a problem whether it is external or internal, by using SWOT you can create a quick overview of what your obstacles you need to overcome and what chances there are to take. SWOT is four initials standing for four different elements, were the elements are used to identify different perspectives of consequences. They each stands for Strengths, Weaknesses, Opportunities and Threats. The first two factors, Strengths and Weaknesses are factors for the internal, typically when you are inside a company, you will look within to see what kind of Strengths you have and what kind of Weaknesses you have, you need to identify them first. Then there are Opportunities and Threats, which are external factors, so you look from internal to external. Opportunities help to identify chances there are to grow, expand and even more potential of a blue ocean and Threats are what kind of competitors are there, restrains, regulations. We will be talking more detailed about it in the sections further down.
A brief history of SWOT
(4)
Introduction to SWOT
S.W.O.T each letter stands for something different, with each one of them having their very own purpose, where they together create a very strong foundation for an analysis, whatever the purpose is for. Let us look at what they stand for (1):
- S - Strengths
- W - Weaknesses
- O - Opportunities
- T - Threats
In depth what do they mean?
- Strengths – Refers to internal competencies, valuables resources or attributes
- Weaknesses – Refers to internal inhibitors of the competencies, resources or attributes necessary for success
- Opportunities – Refers to external enhancer of performance, which can be pursued or used to gain benefit
- Threats – An external inhibitor of performance that has the potential to reduce accomplishments.
What are the typical questions that are been asked for each of them? Strengths:
- Does the company have the necessary skills in-house?
- Has a budget been assigned to the project?
- What are the benefits of completing the project?
- Will the project require new technology or equipment?
- How experienced is the project team on similar projects?
Weaknesses:
- Is there a reliable estimate of costs available?
- Does the company have the budget to provide contingency funding?
- What are the drawbacks of the project?
- Will parts of the project need to be outsourced?
- Is the proposed schedule realistic?
Opportunity:
- Can a local project be leveraged nationally or internationally?
- Do the competitors have any weaknesses?
- What are the latest industry trends?
- Are there any new, or imminent, technology developments?
Threats:
- Is there well-established competition already in the marketplace?
- Are experienced staff difficult to replace?
- Has new technology been fully tested?
- Could national or global economic conditions affect the project?
Naturally, there are a lot more questions that can be asked, but these questions for each of the elements, are good starting points. These questions will help you get started on doing the SWOT. Remember, it is always a good idea to do SWOT in the early basis, because it gives you a detailed overview and gives you information, which you can use for your later processes in decision making and planning (3) Visually the SWOT can be shown as this:
The 4x4 Matrix – Kevin Lim has copyright on the design, but the contents are all taken from (1) p. 126
How to use SWOT
When to use SWOT Here are just a few to show when it is applicable to use SWOT, and these mentioned components are also included in something called Human Performance Technology (HPT), which can deepen your understanding on SWOT, but it is not necessary (4). 1. In performance analysis When identifying the degree to what internal practices and external environmental influences impact how results are currently being accomplished within an organization 2. In cause analysis When finding what practices should be continued or even expanded in the longer terms, as well as those that should be discontinued or replaced by other methods or tools. 3. In strategic planning When in strategic planning and needs assessment for identifying the factors that contribute to or detract from organizational effectiveness 4. In evaluation When monitoring the internal an external environment of a program for change over time, for tracking new SWOTs as they emerge, and for documenting for previously existing SWOTs as they become less influential on a program Besides these quite general categories within HPT practice, SWOT can also be a great to use within(1):
- Appreciative inquiry –To clarify the organization’s strengths and opportunities
- Benchmarking – To identify possible opportunities and threats
- Industry analysis – For contextualizing opportunities existing in the market
- Situation analysis – For evaluating possible trends or ongoing trends in the markets, costs and competition and competitors
- Scenario planning – For considering possible and preferred long-term scenarios
Limitations of SWOT
(4)a
Conclusion
Annotated bibliography
Source:
1. https://onlinelibrary-wiley-com.proxy.findit.dtu.dk/doi/pdf/10.1002/9780470592663.ch24
2. https://www.professionalacademy.com/blogs-and-advice/marketing-theories---swot-analysis
3. https://www.projectsmart.co.uk/swot-analysis-in-project-management.php
4. file:///C:/Users/User/Downloads/HANDBOOK%20OF%20HPT_THIRD%20EDITION.pdf
(4) Handbook of Human Performance Technology Third Edition Principles, Practices, and Potential, James A. Pershing Editor Foreword by Harold D. Stolovitch and Erica J. Keeps
