Swot Analysis

A critical reflection on the SWOT analysis Erik M. van Raaij

The SWOT analysis is a very popular tool, used not only in the process of strategic analysis of organizations, but also in the analysis of products, or the self-analysis of people. This analysis of Strengths, Weaknesses, Opportunities, and Threats is rather intuitively understood by students and other users alike, but due to its popularity and its apparent simplicity, it is also often used inappropriately or incorrectly. [Not to mention the frequency with which its constituents are spelled incorrectly, e.g., “strenghts”, “treats”, or “treaths”.] In this critical reflection, I focus on the SWOT analysis as one step in the process of strategy formation. The SWOT analysis has a specific place in the process of strategic analysis. The Strengths, Weaknesses, Opportunities, and Threats are derived from external and internal analyses. These external and internal analyses usually include an analysis of the macroenvironment (e.g., with use of a PESTEL-analysis), an analysis of the task environment or industry environment, and an analysis of the organization itself. The SWOT analysis uses these analyses as its inputs and should lead to the identification of strategic issues and strategic options. Over my life as a university professor, I have had to review many applications of the SWOT analysis by university students as well as by practitioners. I feel there is a need to clarify what the four constituents of the SWOT analysis should be, and which mistakes are often made. Although this is my personal opinion, I do believe these points will help in using the SWOT analysis in a more appropriate way. The Strengths and Weaknesses follow from the internal analysis, i.e. from a reflection on the own organization. Some external analysis is needed as well, as it should be an analysis of relative strengths and weaknesses. A long list of strengths and weaknesses can start with a list of all things that are deemed good or...