View source for SWOT analysis

{{short description|Business planning and analysis technique}}
{{Other uses|SWOT (disambiguation){{!}}SWOT}}
{{pp-pc1}}
[[File:SWOT en.svg|thumb|The four components of SWOT in a 2&nbsp;×&nbsp;2 matrix]]
{{strategy}}

In [[strategic planning]] and [[strategic management]], '''SWOT analysis''' (also known as the '''SWOT matrix''', '''TOWS''', '''WOTS''', '''{{abbr|WOTS-UP|Weaknesses, Opportunities, Threats and Strengths Underlying Planning}}''', and [[Situation analysis|situational analysis]])<ref>{{cite journal |last1=Nutt |first1=Paul C. |last2=Backoff |first2=Robert W. |date=Summer 1993 |title=Transforming public organizations with strategic management and strategic leadership |journal=[[Journal of Management]] |volume=19 |issue=2 |pages=299–347 (316) |doi=10.1016/0149-2063(93)90056-S |quote=The SWOTs perspective is often used to pose questions for strategic management (e.g., Ansoff, 1980). Steiner's (1979) 'WOTS' approach, Rowe, Mason and Dickel's (1982) WOTS-UP, and Delbecq's (1989) 'TOWS' framework identify three of many derivations.}} See also: {{harvnb|Weihrich|1982|p=54}}: "For convenience, the matrix that will be introduced is called TOWS, or situational analysis"; {{harvnb|Sevier|2001|p=46}}.</ref> is a [[decision-making]] technique that identifies the strengths, weaknesses, opportunities, and threats of an [[organization]] or project.

SWOT analysis evaluates the strategic position of organizations and is often used in the preliminary stages of decision-making processes<ref>{{Cite book |last=Silva |first=Carlos Nunes |date=2005 |chapter=SWOT analysis |title=Encyclopedia of the city |editor-last=Caves |editor-first=Roger W. |location=Abingdon; New York |publisher=[[Routledge]] |pages=[https://archive.org/details/encyclopediaofci0000unse_o0h4/page/444 444–445] |isbn=978-0415862875 |oclc=55948158 |doi=10.4324/9780203484234 |chapter-url=https://archive.org/details/encyclopediaofci0000unse_o0h4/page/444 |chapter-url-access=registration}}</ref> to identify internal and external factors that are favorable and unfavorable to achieving goals. Users of a SWOT analysis ask questions to generate answers for each category and identify [[competitive advantage]]s.

SWOT has been described as a "tried-and-true" tool of strategic analysis,<ref>Examples of the "tried-and-true" trope:
*{{cite book |last=Sevier |first=Robert A. |date=2001 |chapter=Not SWOT, but OTSW |title=Thinking outside the box: some (fairly) radical thoughts on how colleges and universities should think, act, and communicate in a very busy marketplace |location=Hiawatha, Iowa |publisher=Strategy Pub. |page=[https://archive.org/details/thinkingoutsideb0000sevi/page/46 46] |isbn=0971059705 |oclc=48165005 |chapter-url=https://archive.org/details/thinkingoutsideb0000sevi/page/46 |chapter-url-access=registration |quote=Few people realize that there is an inherent danger in conducting a situational analysis using the old tried and true SWOT. The danger is this: When you look inside the organization first, you create a set of glasses through which you will look at the world. In doing so, you are highly likely to overlook significant opportunities and threats.}} See also {{harvnb|Minsky|Aron|2021}}.
*{{cite book |last=Staples |first=Lee |date=2004 |title=Roots to power: a manual for grassroots organizing |edition=2nd |location=Westport, Conn. |publisher=[[Praeger Publishing]] |page=136 |isbn=0275969975 |oclc=56085984 |quote=The tried and true SWOT Assessment examines positive and negative factors as does a Force Field Analysis, but a SWOT has a particular focus on the upsides and downsides for the action group itself.}}
*{{cite book |last1=Lambert |first1=Ron |last2=Parker |first2=Tom |date=2006 |title=Is that your hand in my pocket?: the sales professional's guide to negotiating |location=Nashville |publisher=Nelson Business |page=[https://archive.org/details/isthatyourhandin00lamb/page/132 132] |isbn=0785218777 |oclc=63125604 |url=https://archive.org/details/isthatyourhandin00lamb/page/132 |url-access=registration |quote=Before you as a salesperson can develop a strategy, you have to assess the situation. We recommend the tried-and-true SWOT analysis. You start by taking a look at your Strengths and Weaknesses, your Opportunities and any Threats. Then you do exactly the same thing from the perspective of each of your competitors.}}
</ref> but has also been criticized for limitations such as the static nature of the analysis, the influence of personal biases in identifying key factors, and the overemphasis on external factors, leading to reactive strategies. Consequently, alternative approaches to SWOT have been developed over the years.

== Overview ==
The name is an acronym for four components:

* {{em|Strengths}}: characteristics of the business or project that give it an advantage over others
* {{em|Weaknesses}}: characteristics that place the business or project at a disadvantage relative to others
* {{em|Opportunities}}: elements in the environment that the business or project could exploit to its advantage
* {{em|Threats}}: elements in the environment that could cause trouble for the business or project

Results of the assessment are often presented in the form of a [[Table (information)|matrix]].<ref name=Ansoff1980/>

=== Internal and external factors ===
Strengths and weaknesses are usually considered internal, while opportunities and threats are usually considered external.<ref name=Minsky2021>{{cite web |last1=Minsky |first1=Laurence |last2=Aron |first2=David |date=23 February 2021 |title=Are you doing the SWOT analysis backwards? |website=[[Harvard Business Review]] |url=https://hbr.org/2021/02/are-you-doing-the-swot-analysis-backwards |access-date=7 November 2021 |quote=The results of a SWOT analysis can be (and almost always are) presented simply as a 2&nbsp;×&nbsp;2 grid, with one dimension representing the internal versus external factors, and the other depicting positive versus negative valence.&nbsp;... To improve the inventory collection, you should start with the external factors, then turn your attention to the firm's internal ones.}} See also {{harvnb|Sevier|2001}}.</ref> The degree to which an organization's internal strengths matches with its external opportunities is known as its [[strategic fit]].<ref name=Learned1965/><ref>{{cite book |last=Andrews |first=Kenneth R. |author-link=Kenneth R. Andrews |date=1971 |title=The concept of corporate strategy |location=Homewood, Ill. |publisher=Dow Jones–Irwin |page=[https://archive.org/details/conceptofcorpora00andr_0/page/37 37] |isbn=0870940120 |oclc=151781 |url=https://archive.org/details/conceptofcorpora00andr_0/page/37 |url-access=registration}}</ref><ref name=Mintzberg1998/>

Internal factors may include:<ref name="CTB">{{cite web |title=Community Toolbox: Section 14. SWOT analysis |url=https://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/swot-analysis/main |access-date=2014-02-22 |website=[[Community Tool Box]] |publisher=Center for Community Health and Development at the [[University of Kansas]]}}</ref>
* Human resources—staff, volunteers, board members, stakeholders
* Physical resources—location, building, equipment, plant
* Financial—revenue, grants, investments, other sources of income
* Activities and processes—projects, programs, systems
* Past experiences—reputation, knowledge

External factors may include:<ref name="CTB" />
* Future trends in the organization's field or society at large (e.g. [[macroeconomic]]s, [[technological change]])
* The economy—local, national, or international
* Funding sources—investors, foundations, donors, legislatures
* Demographics—changes in the age, race, gender, culture of those in the organization serviceable area
* Physical environment—growth of location in which organisation is situated, access to location
* [[Legislation]]
* Local, national, or international events

A number of authors advocate assessing external factors before internal factors.<ref name=Minsky2021/><ref name="Weihrich1982">{{cite journal |last=Weihrich |first=Heinz |date=April 1982 |title=The TOWS matrix—a tool for situational analysis |journal=Long Range Planning |volume=15 |issue=2 |pages=54–66 |doi=10.1016/0024-6301(82)90120-0 |s2cid=154914972}}</ref><ref>{{cite web |last=Watkins |first=Michael D. |author-link=Michael D. Watkins |date=27 March 2007 |title=From SWOT to TOWS: answering a reader's strategy question |website=[[Harvard Business Review]] |url=https://hbr.org/2007/03/from-swot-to-tows-answering-a-readers-strategy-question |access-date=7 November 2021}}</ref>

== Use ==
SWOT analysis has been used at different [[Level of analysis|levels of analysis]], including [[business]]es, [[non-profit organizations]], [[Government agency|governmental units]], and [[Person|individuals]].<ref name=SWOTlimits/> It is often used alongside other frameworks, such as [[PEST analysis|PEST]], as a basis for the analysis of internal and environmental factors.<ref>{{cite book |last=Armstrong |first=Michael |url=https://archive.org/details/handbookofhumanr0000arms/page/51 |title=A handbook of human resource management practice |date=2001 |publisher=[[Kogan Page]] |isbn=9780749433932 |edition=8th |location=London |page=[https://archive.org/details/handbookofhumanr0000arms/page/51 51] |oclc=59549399 |url-access=registration}}</ref> SWOT analysis may also be used in pre-crisis planning, preventive [[crisis management]], and [[viability study]] recommendation construction.<ref>{{cite journal |last=Welch |first=James Stewart Jr. |title=Visioning strategy through the "Johari window": discovering critical "unknowns" in a rapidly evolving context |journal=Strategy and Leadership |date=July 2023 |doi=10.1108/SL-05-2023-0056 |url=https://doi.org/10.1108/SL-05-2023-0056|url-access=subscription }}</ref>

=== Strategic planning ===
SWOT analysis can be used to build organizational or personal strategy. Steps necessary to execute strategy-oriented analysis involve identifying internal and external factors, selecting and evaluating the most important factors, and identifying relationships between internal and external features.<ref name=Pickton1998>{{cite journal |last1=Pickton |first1=David W. |last2=Wright |first2=Sheila |date=March 1998 |title=What's swot in strategic analysis? |journal=Strategic Change |volume=7 |issue=2 |pages=101–109 |doi=10.1002/(SICI)1099-1697(199803/04)7:2<101::AID-JSC332>3.0.CO;2-6}}</ref> For instance, strong relations between strengths and opportunities can suggest good conditions in the company and allow using an {{em|aggressive}} strategy. On the other hand, strong interactions between weaknesses and threats could be analyzed as a warning to use a {{em|defensive}} strategy.<ref>{{cite journal |last1=Osita |first1=Christian |last2=Onyebuchi |first2=Idoko |last3=Justina |first3=Nzekwe |date=31 January 2014 |title=Organization's stability and productivity: the role of SWOT analysis |url=http://journalijiar.com/uploads/2014-10-02_231409_710.pdf |journal=International Journal of Innovative and Applied Research |volume=2 |issue=9 |pages=23–32 |access-date=17 March 2016}}</ref>

One form of SWOT analysis combines each of the four components with another to examine four distinct strategies:<ref name="Weihrich1982" />
* WT strategy (mini–mini): Faced with external threats and internal weaknesses, how to minimize both weaknesses and threats?
* WO strategy (mini–maxi): Faced with external opportunities and internal weaknesses, how to minimize weaknesses and maximize opportunities?
* ST strategy (maxi–mini): Faced with internal strengths and external threats, how to maximize strengths and minimize threats?
* SO strategy (maxi–maxi): Faced with external opportunities and internal strengths, how to maximize both opportunities and strengths?

==== Matching and converting ====
A SWOT analysis can be used to generate matching and converting strategies.<ref name=Piercy1989>{{cite journal |last1=Piercy |first1=Nigel |last2=Giles |first2=William |date=May 1989 |title=Making SWOT analysis work |journal=Marketing Intelligence & Planning |volume=7 |issue=5/6 |pages=5–7 |doi=10.1108/EUM0000000001042}}</ref> Matching refers to seeking [[competitive advantage]] by matching strengths to opportunities. This strategy ensures that an organization leverages its core competencies, resources, and capabilities to capitalize on favorable market conditions, emerging trends, or unmet customer needs. Conversion refers to  converting weaknesses or threats into strengths or opportunities. An example of a conversion strategy is to buy off a threat through collaboration or merger.<ref name=Piercy1989 />

=== Marketing ===
{{Main|Marketing management}}
{{See also|Marketing mix}}
In [[competitor analysis]], marketers can use SWOT analysis to detail and profile the competitive strengths and weaknesses of each competitor in the market. This process may involve analysing competitors' cost structures, sources of profits, resources and competencies, competitive positioning, [[product differentiation]], degree of [[vertical integration]], historical responses to industry developments, among other factors. Relevant [[marketing research]] methods may include:
* [[Qualitative marketing research]] such as focus groups
* [[Quantitative marketing research]] such as statistical surveys
* Experimental techniques such as test markets
* Observational techniques such as ethnographic (on-site) observation

Marketing managers may also design and oversee various [[Market environment|environmental scanning]] and [[competitive intelligence]] processes to help identify trends and inform the company's marketing analysis.

{| class="wikitable"
|+SWOT analysis of the market position of a small management consultancy with a specialism in human resource management<ref name="Armstrong1990">{{cite book |last=Armstrong |first=Michael |url=https://archive.org/details/managementproces0000arms |title=Management processes and functions |date=1990 |publisher=Institute of Personnel Management |isbn=0-85292-438-0 |series=Management studies series |location=London |oclc=21301791 |url-access=registration}}</ref>
|-
! Strengths
! width=25% | Weaknesses
! width=25% | Opportunities
! width=25% | Threats
|- valign=top
| Reputation in marketplace
| Shortage of consultants at operating level rather than partner level
| Well established position with a well-defined market niche
| Large consultancies operating at a minor level
|- valign=top
| Expertise at partner level in HRM consultancy
| Unable to deal with multidisciplinary assignments because of size or lack of ability
| Identified market for consultancy in areas other than HRM
| Other small consultancies looking to invade the marketplace
|- valign=top
|}

=== In community organizations ===
[[File:SWOT Analysis ssw 1.png|thumb|An example of a SWOT template that includes cells for strategies, not only assessments]]
[[File:SWOT Analysis ssw 2.png|thumb|A simple SWOT template]]
Although the SWOT analysis was originally designed for business and industries, it has been used in [[Non-governmental organization|non-governmental organisations]] as a tool for identifying external and internal support to combat internal and external opposition for successful implementation of [[social services]] and [[social change]] efforts.<ref name="CTB" /> Understanding particular communities can come from public forums, listening campaigns, and informational interviews and other data collection.<ref name="CTB" /> SWOT analysis provides direction to the next stages of the [[Change management|change process]].<ref name="Birkenmaier2001">{{cite book |last1=Birkenmaier |first1=Julie |title=The practice of generalist social work |last2=Berg-Weger |first2=Marla |date=2017 |publisher=[[Routledge]] |isbn=9781138057852 |edition=4th |location=New York |pages=552–577 |chapter=Organizational engagement, assessment, and planning |oclc=971892636}}</ref> It has been used by community organizers and community members to further social justice in the context of social work practice,<ref name="Birkenmaier2001" /> and can be applied directly to communities served by a specific nonprofit or community organization.<ref name="social work">{{cite journal |last1=Westhues |first1=Anne |last2=Lafrance |first2=Jean |last3=Schmidt |first3=Glen |date=February 2001 |title=A SWOT analysis of social work education in Canada |journal=Social Work Education: The International Journal |volume=20 |issue=1 |pages=35–56|doi=10.1080/02615470020028364 |s2cid=143892190 |url=https://www.researchgate.net/publication/248994170}}</ref>

==Limitations and alternatives==
SWOT analysis is intended as a starting point for discussion and not to, in itself, show managers how to achieve a competitive advantage.<ref name=Dess2012>{{cite book |last1=Dess |first1=Gregory G. |last2=Lumpkin |first2=G. Thomas |last3=Eisner |first3=Alan B. |last4=McNamara |first4=Gerry |date=2012 |chapter=The limitations of SWOT analysis |title=Strategic management: text and cases |edition=6th |location=New York |publisher=[[McGraw-Hill/Irwin]] |pages=[https://archive.org/details/strategicmanagem0000unse_l3o3/page/n127 82] |isbn=9780078029318 |oclc=740281685 |chapter-url=https://archive.org/details/strategicmanagem0000unse_l3o3/page/n127 |chapter-url-access=registration}}</ref>

In a highly-cited 1997 critique, "SWOT Analysis: It's Time for a Product Recall", Terry Hill and Roy Westbrook observed that one among many problems of SWOT analysis as often practiced is that "no-one subsequently used the outputs [of SWOT analysis] within the later stages of the strategy".<ref name=HillWestbrook1997>{{cite journal |last1=Hill |first1=Terry |last2=Westbrook |first2=Roy |title=SWOT analysis: it's time for a product recall |journal=Long Range Planning |volume=30 |issue=1 |pages=46–52 |date=February 1997 |doi=10.1016/S0024-6301(96)00095-7 |citeseerx=10.1.1.469.2246}}</ref> Hill and Westbrook, among others, also criticized hastily designed SWOT lists.<ref name=HillWestbrook1997/><ref>{{cite journal |last=Koch |first=Adam |title=SWOT does not need to be recalled: It needs to be enhanced |journal=B&gt;Quest |publisher=Richards College of Business, [[State University of West Georgia]] |year=2000 |url=http://www.westga.edu/~bquest/2000/swot1.html |issn=1084-3981}}</ref> Other limitations of SWOT practice include: preoccupation with a single strength, such as cost control, leading to a neglect of weaknesses, such as product quality;<ref name=Dess2012/> and domination by one or two team members doing the SWOT analysis and devaluing possibly important contributions of other team members.<ref>{{cite journal |last1=Chermack |first1=Thomas J. |last2=Kasshanna |first2=Bernadette K. |title=The use of and misuse of SWOT analysis and implications for HRD professionals |journal=Human Resource Development International |date=December 2007 |volume=10 |issue=4 |pages=383–399 |doi=10.1080/13678860701718760 |s2cid=145098663}}</ref> Many other limitations have been identified.<ref name=Pickton1998/>

Business professors have suggested various ways to remedy the common problems and limitations of SWOT analysis while retaining the SWOT framework.<ref name=SWOTlimits>Some examples of publications that suggest remedies for common problems and limitations of SWOT analysis:
* {{cite journal |last=Valentin |first=Erhard K. |date=April 2001 |title=SWOT analysis from a resource-based view |journal=Journal of Marketing Theory and Practice |volume=9 |issue=2 |pages=54–69 |jstor=40470032 |doi=10.1080/10696679.2001.11501891|s2cid=167660094 }}
* {{cite journal |last1=Coman |first1=Alex |last2=Ronen |first2=Boaz |date=October 2009 |title=Focused SWOT: diagnosing critical strengths and weaknesses |journal=International Journal of Production Research |volume=47 |issue=20 |pages=5677–5689 |doi=10.1080/00207540802146130|s2cid=109603771 }}
* {{cite journal |last1=Helms |first1=Marilyn M. |last2=Nixon |first2=Judy |date=August 2010 |title=Exploring SWOT analysis—where are we now? A review of academic research from the last decade |journal=Journal of Strategy and Management |volume=3 |issue=3 |pages=215–251 |doi=10.1108/17554251011064837}}
* {{cite journal |last1=Agarwal |first1=Ravi |last2=Grassl |first2=Wolfgang |last3=Pahl |first3=Joy |date=January 2012 |title=Meta-SWOT: introducing a new strategic planning tool |journal=Journal of Business Strategy |volume=33 |issue=2 |pages=12–21 |doi=10.1108/02756661211206708}}
* {{cite journal |last1=Bell |first1=Geoffrey G. |last2=Rochford |first2=Linda |date=November 2016 |title=Rediscovering SWOT's integrative nature: a new understanding of an old framework |journal=The International Journal of Management Education |volume=14 |issue=3 |pages=310–326 |doi=10.1016/j.ijme.2016.06.003}}
* {{cite journal |last1=Lohrke |first1=Franz T. |last2=Mazzei |first2=Matthew J. |last3=Frownfelter-Lohrke |first3=Cynthia |date=June 2021 |title=Should it stay or should it go? Developing an enhanced SWOT framework for teaching strategy formulation |journal=[[Journal of Management Education]] |volume=46 |issue=2 |pages=345–382 |doi=10.1177/10525629211021143|s2cid=236311321 }}
</ref>

=== Porter's five forces ===
{{Main|Porter's five forces analysis}}
{{See also|Porter's four corners model}}
[[Michael Porter]] developed the [[Porter's five forces analysis|five forces framework]] as an alternative to SWOT analyses, which he found lacking in rigor and over-dependent on individual company circumstances.<ref>{{Cite journal |last1=Porter |first1=Michael |author-link1=Michael Porter |last2=Argyres |first2=Nicholas |last3=McGahan |first3=Anita M. |year=2002 |title=An interview with Michael Porter |journal=The Academy of Management Executive (1993–2005) |volume=16 |issue=2 |pages=43–52 |jstor=4165839}}</ref>

=== SOAR ===
SOAR (strengths, opportunities, aspirations, and results) is an alternative technique inspired by [[appreciative inquiry]].<ref>{{cite book |last1=Stavros |first1=Jacqueline M. |last2=Cooperrider |first2=David |author-link2=David Cooperrider |last3=Kelley |first3=D. Lynn |chapter=SOAR: a new approach to strategic planning |date=2007 |editor1-last=Holman |editor1-first=Peggy |editor2-last=Devane |editor2-first=Tom |editor3-last=Cady |editor3-first=Steven |title=The change handbook: the definitive resource on today's best methods for engaging whole systems |edition=2nd |location=San Francisco |publisher=Berrett-Koehler |pages=[https://archive.org/details/The_Change_Handbook_9781576755099/page/375 375–380] |isbn=9781576753798 |oclc=66527256 |chapter-url=https://archive.org/details/The_Change_Handbook_9781576755099/page/375 |chapter-url-access=registration}}</ref><ref>{{cite book |last1=Stavros |first1=Jacqueline M. |last2=Hinrichs |first2=Gina |date=2009 |title=The thin book of SOAR: building strengths-based strategy |location=Bend, OR |publisher=Thin Book Pub. Co. |isbn=9780982206805 |oclc=662578328}}</ref> SOAR has been criticized as having similar limitations as SWOT, such as "the inability to identify the necessary data".<ref>{{cite journal |last=McLean |first=Gary N. |date=Winter 2017 |title=Will SOAR really help organization development soar?: an invited reaction to Zarestky and Cole, 2017 |journal=New Horizons in Adult Education and Human Resource Development |volume=29 |issue=1 |pages=25–28 |doi=10.1002/nha3.20168}}</ref>

=== SVOR ===
In project management, the alternative to SWOT known by the acronym SVOR (Strengths, Vulnerabilities, Opportunities, and Risks) compares the project elements along two axes: internal and external, and positive and negative.<ref name=Mesly/> It takes into account the mathematical link that exists between these various elements, considering also the role of infrastructures. The SVOR table provides an intricate understanding of the elements hypothesized to be at play in a given project:<ref name=Mesly>{{cite book |last=Mesly |first=Olivier |date=2017 |title=Project feasibility: tools for uncovering points of vulnerability |series=Industrial innovation series |location=Boca Raton, FL |publisher=[[CRC Press]] |isbn=9781498757911 |oclc=953982371 |doi=10.1201/9781315295251}}</ref>{{rp|9}}

{| class="wikitable"
|-
! Forces !! Internal !! Mathematical link !! External
|-
| {{em|Positive}} || Total Forces || Total Forces given constraints = Infrastructures / Opportunities || Opportunities
|-
| {{em|Mathematical link}} || Vulnerabilities given constraints = 1 / Total Forces || constant ''k'' || Opportunities given constraints = 1 / Risks
|-
| {{em|Negative}} || Vulnerabilities || Risks given constraints = ''k'' / Vulnerabilities || Risks
|}

Constraints consist of: calendar of tasks and activities, costs, and norms of quality. The "''k''" constant varies with each project (for example, it may be valued at 1.3).<ref name=Mesly/>{{rp|9}}

== History ==
In 1965, three colleagues at the Long Range Planning Service (LRPS) of [[Stanford Research Institute]]—Robert F. Stewart, Otis J. Benepe, and [[Arnold Mitchell]]—wrote a technical report titled ''Formal Planning: The Staff Planner's Role at Start-Up''.<ref name=Puyt2020>{{cite journal |last1=Puyt |first1=Richard W. |last2=Lie |first2=Finn Birger |last3=De Graaf |first3=Frank Jan |last4=Wilderom |first4=Celeste P. M. |date=July 2020 |title=Origins of SWOT analysis |journal=Academy of Management Proceedings |volume=2020 |issue=1 |pages=17416 |doi=10.5465/AMBPP.2020.132|s2cid=225400774 |url=https://research.hva.nl/en/publications/925cb00a-6410-4d26-be1e-be030de12f3a }}</ref> The report described how a person in the role of a company's staff planner would gather information from managers assessing operational issues grouped into four components represented by the acronym SOFT: the "satisfactory" in present operations, "opportunities" in future operations, "faults" in present operations, and "threats" to future operations.<ref name=Puyt2020/> Stewart et al. focused on internal operational assessment and divided the four components into {{em|present}} (satisfactory and fault) and {{em|future}} (opportunity and threat),<ref name=Puyt2020/> and not, as would later become common in SWOT analysis, into {{em|internal}} (strengths and weaknesses) and {{em|external}} (opportunities and threats).<ref name=Learned1965/>

Also in 1965, four colleagues at the [[Harvard Graduate School of Business Administration]] (later the Harvard Business School)—Edmund P. Learned, C. Roland Christensen, [[Kenneth R. Andrews]], and William D. Guth—published the first of many editions of the textbook ''Business Policy: Text and Cases''.<ref name=Learned1965>{{cite book |last1=Learned |first1=Edmund Philip |last2=Christensen |first2=C. Roland |last3=Andrews |first3=Kenneth R. |last4=Guth |first4=William D. |date=1965 |title=Business policy: text and cases |edition=1st |location=Homewood, Illinois |publisher=Richard D. Irwin, Inc. |page=[https://archive.org/details/businesspolicyte0000lear/page/20 20] |oclc=680327 |url=https://archive.org/details/businesspolicyte0000lear/page/20 |url-access=registration}} (See also {{harvnb|Andrews|1971|p=37}}.) Many publications cite this textbook as an early statement of the ideas behind SWOT, although it contains neither a 2&nbsp;×&nbsp;2 matrix nor any detailed procedure for doing a SWOT assessment; for example, [[Robert S. Kaplan]] and [[David P. Norton]] called this textbook "one of the early SWOT references", in: {{cite book |last1=Kaplan |first1=Robert S. |last2=Norton |first2=David P. |date=2008 |title=The execution premium: linking strategy to operations for competitive advantage |location=Boston, MA |publisher=[[Harvard Business Press]] |page=[https://archive.org/details/executionpremium00kapl/page/67 67] |isbn=9781422121160 |oclc=227277585 |url=https://archive.org/details/executionpremium00kapl |url-access=registration}}</ref> ({{em|Business policy}} was a term then current for what has come to be called strategic management.<ref name=Browne1999>{{cite book |last1=Browne |first1=Michael |last2=Banerjee |first2=Bobby |last3=Fulop |first3=Liz |last4=Linstead |first4=Stephen |date=1999 |chapter=Managing strategically |editor1-last=Fulop |editor1-first=Liz |editor2-last=Linstead |editor2-first=Stephen |title=Management: a critical text |location=South Yarra, Vic. |publisher=[[Macmillan Education]] |pages=364–413 (373–379) |isbn=0732937191 |oclc=39837267 |doi=10.1007/978-1-349-15064-9_11}}</ref>) The first chapter of the textbook stated, without using the acronym, the four components of SWOT and their division into internal and external appraisal:

{{Quote|Deciding what strategy should be is, at least ideally, a rational undertaking. Its principal subactivities include identifying opportunities and threats in the company's environment and attaching some estimate of risk to the discernible alternatives. Before a choice can be made, the company's strengths and weaknesses must be appraised.<ref name=Learned1965/>}}

Looking back from three decades later, in the book ''Strategy Safari'' (1998), management scholar [[Henry Mintzberg]] and colleagues said that ''Business Policy: Text and Cases'' "quickly became the most popular classroom book in the field", widely diffusing its authors' ideas, which Mintzberg et al. called the "design school" model (in contrast to nine other schools that they identified) of strategic management, "with its famous notion of SWOT" emphasizing assessment of a company's internal and external situations.<ref name=Mintzberg1998>{{cite book |last1=Mintzberg |first1=Henry |author-link1=Henry Mintzberg |last2=Ahlstrand |first2=Bruce W. |author-link2=Bruce Ahlstrand |last3=Lampel |first3=Joseph |date=1998 |chapter=The design school: strategy formation as a process of conception |title=Strategy safari: a guided tour through the wilds of strategic management |location=New York |publisher=[[Free Press (publisher)|Free Press]] |pages=[https://archive.org/details/strategysafarigu00mint_0/page/24 24–25] |isbn=0684847434 |oclc=38354698 |chapter-url=https://archive.org/details/strategysafarigu00mint_0/page/24 |chapter-url-access=registration}}</ref><ref name=Mintzberg1990>An analysis of the "design school" model was also in Mintzberg's earlier publications such as: {{cite journal |last=Mintzberg |first=Henry |author-link=Henry Mintzberg |date=March 1990 |title=The design school: reconsidering the basic premises of strategic management |journal=[[Strategic Management Journal]] |volume=11 |issue=3 |pages=171–195 |jstor=2486485 |doi=10.1002/smj.4250110302|doi-access=free }}</ref><ref name=Browne1999/> However, the textbook contains neither a 2&nbsp;×&nbsp;2 SWOT matrix nor any detailed procedure for doing a SWOT assessment.<ref name=Learned1965/> ''Strategy Safari'' and other books identified [[Kenneth R. Andrews]] as the co-author of ''Business Policy: Text and Cases'' who was responsible for writing the theoretical part of the book containing the SWOT components.<ref name=Mintzberg1998/><ref>{{cite book |last=Kiechel |first=Walter |author-link=Walter Kiechel |date=2010 |title=The lords of strategy: the secret intellectual history of the new corporate world |location=Boston, MA |publisher=[[Harvard Business Press]] |page=[https://archive.org/details/lordsofstrategys0000kiec/page/121 121] |isbn=9781591397823 |oclc=259247279 |url=https://archive.org/details/lordsofstrategys0000kiec/page/121 |url-access=registration |quote=What Andrews and his colleagues in the Business Policy course resolutely refused to do—and the main reason his ideas largely disappear from the subsequent history of strategy—was to agree that there were standard frameworks or constructs that could be applied to analyzing a business and its competitive situation. Oh, they might allow one, perhaps because they had helped develop it: so-called SWOT analysis, which called for looking at the strengths, weaknesses, opportunities, and threats besetting an enterprise.}}</ref><ref>{{harvnb|Hill|Westbrook|1997|p=47}}: "The work of Kenneth Andrews has been especially influential in popularizing the idea that good strategy means ensuring a fit between the external situation a firm faces (threats and opportunities) and its own internal qualities or characteristics (strengths and weaknesses)."</ref> More generally, Mintzberg et al. attributed some conceptual influences on what they called the "design school" (of which they were strongly critical) to earlier books by [[Philip Selznick]] (''Leadership in Administration'', 1957) and [[Alfred D. Chandler Jr.]] (''Strategy and Structure'', 1962),<ref name=Mintzberg1998/> with other possible influences going back to the [[McKinsey]] consulting firm in the 1930s.<ref name=Mintzberg1990/><ref>{{cite book |last=McKinsey |first=James Oscar |author-link=James O. McKinsey |date=1932 |title=Adjusting policies to meet changing conditions |series=General management series |volume=G.M. 116 |location=New York |publisher=[[American Management Association]] |oclc=10865820}} Presented at the AMA General Management Conference held in New York, May 3, 1932.</ref>

However, a 2023 history of SWOT by Richard W. Puyt and colleagues criticized Mintzberg's "vilification of SWOT" and Mintzberg's apparently poor knowledge of the LRPS at Stanford.<ref name=Puyt2023>{{Cite journal |last=Puyt |first=Richard W. |last2=Lie |first2=Finn Birger |last3=Wilderom |first3=Celeste P. M. |date=2023-06-01 |title=The origins of SWOT analysis |journal=Long Range Planning |volume=56 |issue=3 |pages=102304 |doi=10.1016/j.lrp.2023.102304 |doi-access=free |issn=0024-6301|url=https://research.utwente.nl/en/publications/caeb1767-c4f8-42eb-9eff-7e847aec79f9 }}</ref> Puyt et al. considered the LRPS to be the originator of SWOT (via SOFT) and said that the claim of Mintzberg and others that SWOT was invented at, or disseminated by, Harvard Business School is an "academic urban legend".<ref name=Puyt2023 />

By the end of the 1960s, the four components of SWOT (without using the acronym) had appeared in other publications on strategic planning by various authors,<ref>Examples of publications in the late 1960s that mention the four components of SWOT without using the acronym include:
* {{cite journal |last=Quinn |first=James Brian |author-link=James Brian Quinn |date=Autumn 1968 |title=Technological strategies for industrial companies |journal=Management Decision |volume=2 |issue=3 |pages=182–188 |doi=10.1108/eb000858}}
* {{cite journal |last=Hargreaves |first=D. |date=March 1969 |title=Corporate planning: a chairman's guide |journal=Long Range Planning |volume=1 |issue=3 |pages=28–37 |doi=10.1016/0024-6301(69)90069-7}}
* {{cite journal |last=Humble |first=John W. |date=June 1969 |title=Corporate planning and management by objectives |journal=Long Range Planning |volume=1 |issue=4 |pages=36–43 |doi=10.1016/0024-6301(69)90044-2}}
* {{cite journal |last=Ringbakk |first=Kjell-Arne |date=December 1969 |title=Organised planning in major U.S. companies |journal=Long Range Planning |volume=2 |issue=2 |pages=46–57 |doi=10.1016/0024-6301(69)90009-0}}
* {{cite book |last=Steiner |first=George A. |date=1969 |title=Top management planning |series=Studies of the modern corporation |location=New York |publisher=Macmillan |oclc=220043}}
</ref> and by 1972 the acronym had appeared in the title of a journal article by Norman Stait, a [[Management consulting|management consultant]] at the British firm Urwick, Orr and Partners.<ref>{{cite journal |last=Stait |first=Norman H. |date=July 1972 |title=Management training and the smaller company: SWOT analysis |journal=Industrial and Commercial Training |volume=4 |issue=7 |pages=325–330 |doi=10.1108/eb003232}}</ref> By 1973, the acronym was well-known enough that accountant William W. Fea, in a published lecture, mentioned "the mnemonic, familiar to students, of S.W.O.T., namely strengths, weaknesses, opportunities, threats".<ref>{{cite journal |last=Fea |first=William W. |date=1973 |title=The sixtieth Thomas Hawksley lecture: The accountant—overhead burden or service? |journal=[[Proceedings of the Institution of Mechanical Engineers]] |volume=187 |issue=1 |pages=687–697 (689) |doi=10.1243/PIME_PROC_1973_187_155_02}}</ref> Early examples of a 2&nbsp;×&nbsp;2 SWOT matrix are found in John Argenti's book ''Systematic Corporate Planning'' (1974)<ref>{{cite journal |last1=Puyt |first1=Richard W. |last2=Lie |first2=Finn Birger |last3=Madsen |first3=Dag Øivind |date=June 2024 |title=From SOFT approach to SWOT analysis, a historical reconstruction |journal=Journal of Management History |volume=31 |issue=2 |pages=333–373 |doi=10.1108/JMH-05-2023-0047 |doi-access=free}}</ref> and in a 1980 article by management professor [[Igor Ansoff]] (but Ansoff used the acronym T/O/S/W instead of SWOT).<ref name=Ansoff1980>{{cite journal |last=Ansoff |first=H. Igor |author-link=H. Igor Ansoff |date=April 1980 |title=Strategic issue management |journal=[[Strategic Management Journal]] |volume=1 |issue=2 |pages=131–148 |jstor=2486096 |doi=10.1002/smj.4250010204|s2cid=167511003 }}</ref> In the 1960s Ansoff had worked with the LRPS, where the SOFT approach originated.<ref>{{cite journal |last1=Puyt |first1=Richard W. |last2=Antoniou |first2=Peter H. |last3=Caputo |first3=Andrea |date=November 2024 |title=The Ansoff archive: revisiting Ansoff's legacy and the holistic approach to strategic management |journal=Strategic Change |volume=33 |issue=6 |pages=513–518 |doi=10.1002/jsc.2600 |doi-access=free|hdl=11572/433690 |hdl-access=free }}</ref>

==In popular culture==
* Television: In the 2015 ''[[Silicon Valley (TV series)|Silicon Valley]]'' episode "Homicide" (Season 2, Episode 6), Jared Dunn ([[Zach Woods]]) introduces the Pied Piper team to SWOT analysis. Later in that episode Dinesh ([[Kumail Nanjiani]]) and Gilfoyle ([[Martin Starr]]) employ the method when deciding whether or not to inform a stunt driver that the calculations for his upcoming jump were performed incorrectly.<ref>{{cite episode |last=Kemper |first=Carrie |author-link=Carrie Kemper |date=May 17, 2015 |title=Homicide |series=Silicon Valley |series-link=Silicon Valley (TV series) |season=2 |number=6 |network=[[HBO]]}}</ref>

== See also ==
* [[Benchmarking]]
* [[Enterprise planning systems]]
* [[Problem structuring methods]]
* [[Program evaluation and review technique]] (PERT)
* [[Semiotic square]] (Greimas square)
* [[Situation analysis]]
* [[Six forces model]]
* [[SWOQe]]
* [[VRIO]] (Value, Rarity, Imitability, Organization)

== References ==
{{Reflist|30em}}

== Further reading ==
SWOT analysis is described in very many publications. A few examples of books that describe SWOT analysis and are widely held by [[WorldCat]] member libraries and available in the [[Internet Archive]] are:
{{refbegin}}
* {{cite book |last1=Bensoussan |first1=Babette E. |author-link1=Babette Bensoussan |last2=Fleisher |first2=Craig S. |author-link2=Craig Fleisher |date=2008 |chapter=SWOT analysis |title=Analysis without paralysis: 10 tools to make better strategic decisions |location=Upper Saddle River, NJ |publisher=[[FT Press]] |pages=[https://archive.org/details/analysiswithoutp0000bens/page/183 183–197] |isbn=978-0132361804 |oclc=199464839 |chapter-url=https://archive.org/details/analysiswithoutp0000bens/page/183 |chapter-url-access=registration}}
* {{cite book |last=Coulter |first=Mary K. |date=2008 |chapter=Assessing opportunities and threats: doing an external analysis; Assessing strengths and weaknesses: doing an internal analysis |title=Strategic management in action |edition=4th |location=Upper Saddle River, NJ |publisher=[[Pearson (publisher)|Pearson]]/[[Prentice Hall]] |pages=[https://archive.org/details/strategicmanagem00coul/page/67 67–138] |isbn=9780132277471 |oclc=147987777 |chapter-url=https://archive.org/details/strategicmanagem00coul/page/67 |chapter-url-access=registration}}
* {{cite book |last1=Friend |first1=Graham |last2=Zehle |first2=Stefan |date=2009 |chapter=SWOT analysis |title=Guide to business planning |edition=2nd |series=''[[The Economist]]'' books |location=New York |publisher=[[Bloomberg Press]] |pages=[https://archive.org/details/guidetobusinessp0000frie_i3g3/page/85 85–88] |isbn=9781576603284 |oclc=263978200 |chapter-url=https://archive.org/details/guidetobusinessp0000frie_i3g3/page/85 |chapter-url-access=registration}}
* {{cite book |last=Gilad |first=Benjamin |author-link=Benjamin Gilad |date=2004 |chapter=The curse of the SWOT |title=Early warning: using competitive intelligence to anticipate market shifts, control risk, and create powerful strategies |location=New York |publisher=[[AMACOM]] |pages=[https://archive.org/details/earlywarningusin0000gila/page/95 95–97] |isbn=0814407862 |oclc=51898746 |chapter-url=https://archive.org/details/earlywarningusin0000gila/page/95 |chapter-url-access=registration}}
* {{cite book |last=Higgins |first=James M. |date=1983 |chapter=Internal and environmental information: SWOT; Appendix 1: The situation audit—a SWOT approach |title=Organizational policy and strategic management: text and cases |edition=2nd |series=Dryden Press series in management |location=Chicago |publisher=[[Dryden Press]] |pages=[https://archive.org/details/organizationalpo0000higg/page/31 31–37]; [https://archive.org/details/organizationalpo0000higg/page/789 789–796] |isbn=0030619610 |oclc=9372705 |chapter-url=https://archive.org/details/organizationalpo0000higg/page/31 |chapter-url-access=registration}}
* {{cite book |last1=Hunger |first1=J. David |last2=Wheelen |first2=Thomas L. |date=2011 |chapter=Situational (SWOT) analysis |title=Essentials of strategic management |edition=5th |location=Upper Saddle River, NJ |publisher=[[Prentice Hall]] |pages=[https://archive.org/details/essentialsofstra0000hung/page/72 72–78] |isbn=9780136006695 |oclc=544474608 |chapter-url=https://archive.org/details/essentialsofstra0000hung/page/72 |chapter-url-access=registration}}
* {{cite book |last=Hussey |first=David E. |date=1998 |chapter=The corporate appraisal—assessing strengths and weaknesses; Analysing the industry and competitors |title=Strategic management: from theory to implementation |edition=4th |location=Oxford; Boston |publisher=[[Butterworth-Heinemann]] |pages=[https://archive.org/details/strategicmanagem0000huss/page/163 163–236] |isbn=0750638494 |oclc=39923184 |chapter-url=https://archive.org/details/strategicmanagem0000huss/page/163 |chapter-url-access=registration}}
* {{cite book |last1=Jenster |first1=Per V. |last2=Hussey |first2=David E. |date=2001 |chapter=The purposes and nature of the appraisal |title=Company analysis: determining strategic capability |location=Chichester, UK; New York |publisher=[[John Wiley & Sons]] |pages=[https://archive.org/details/companyanalysisd0000jens/page/11 11–30] |isbn=0471494542 |oclc=46601364 |chapter-url=https://archive.org/details/companyanalysisd0000jens/page/11 |chapter-url-access=registration}}
* {{cite book |last1=Kaplan |first1=Robert S. |author-link1=Robert S. Kaplan |last2=Norton |first2=David P. |author-link2=David P. Norton |date=2008 |chapter=Identifying strengths, weaknesses, opportunities, and threats (SWOT) |title=The execution premium: linking strategy to operations for competitive advantage |location=Boston, MA |publisher=[[Harvard Business Press]] |page=[https://archive.org/details/executionpremium00kapl/page/49 49–53] |isbn=9781422121160 |oclc=227277585 |chapter-url=https://archive.org/details/executionpremium00kapl/page/49 |chapter-url-access=registration}}
* {{cite book |last=Steiner |first=George A. |date=1979 |chapter=The WOTS UP analysis |title=Strategic planning: what every manager must know |location=New York |publisher=[[Free Press (publisher)|Free Press]] |pages=[https://archive.org/details/strategicplannin00geor/page/142 142–148] |isbn=0029311101 |oclc=4830139 |chapter-url=https://archive.org/details/strategicplannin00geor/page/142 |chapter-url-access=registration}}
* {{cite book |last=Steiss |first=Alan Walter |date=2003 |chapter=Strategic planning: SWOT analysis, strategies, policies, and implementation |title=Strategic management for public and nonprofit organizations |series=Public administration and public policy |volume=102 |location=New York |publisher=[[Marcel Dekker]] |pages=[https://archive.org/details/strategicmanagem0000stei/page/73 73–97] |isbn=0824708741 |oclc=51981511 |chapter-url=https://archive.org/details/strategicmanagem0000stei/page/73 |chapter-url-access=registration}}
* {{cite book |date=2006 |chapter=SWOT analysis I: looking outside for opportunities and threats; SWOT analysis II: looking inside for strengths and weaknesses |title=The essentials of strategy |series=Harvard business literacy for HR professionals |location=Boston, MA; Alexandria, VA |publisher=[[Harvard Business School Press]] and the [[Society for Human Resource Management]] |pages=[https://archive.org/details/essentialsofstra0000unse/page/21 21–64] |isbn=1591398223 |oclc=76260664 |chapter-url=https://archive.org/details/essentialsofstra0000unse/page/21 |chapter-url-access=registration}}
* {{cite book |last1=Thompson |first1=Arthur A. |last2=Peteraf |first2=Margaret A. |last3=Gamble |first3=John E. |last4=Strickland III |first4=A. J. |date=2016 |chapter=What are the company's strengths and weaknesses in relation to the market opportunities and external threats? |title=Crafting and executing strategy: the quest for competitive advantage: concepts and cases |edition=20th |location=New York |publisher=[[McGraw-Hill Education]] |pages=[https://archive.org/details/craftingexecutin0000thom_q2z1/page/n138 89–94] |isbn=9780077720599 |oclc=890011455 |chapter-url=https://archive.org/details/craftingexecutin0000thom_q2z1/page/n138 |chapter-url-access=registration}}
{{refend}}

== External links ==
* {{Commonscatinline}}

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