SWOT analysis is one of the most widely used business frameworks that takes into account strengths, weaknesses, opportunities and threats facing a company. This is a useful brainstorming tool for development of a business strategy that puts an emphasis on both internal and external factors facing a company.
One would start with analyzing company’s strengths, i.e. what the company is good at (example: internal capabilities, technology). Then it is important to look for weaknesses (example: history of poor marketing campaigns). Opportunities would include new areas where company could compete, be it new products or markets. Finally threats are external factors that may damage company’s competitive position (example: competitors, regulations). See a sample swot diagram below.
SWOT is also one of the key techniques in project management used for risk identification and analysis. The output of the swot analysis exercise is used to prepare risk management plans and form bases for qualitative and quantitative risk evaluation.