SWOT analysis explained — the strategic planning framework

SWOT analysis is a strategic planning framework used to evaluate the Strengths, Weaknesses, Opportunities and Threats relevant to a business, project, or decision. It was developed in the 1960s and remains one of the most widely used business analysis tools.

The four quadrants

• Strengths (internal, helpful): resources and capabilities that provide an advantage
• Weaknesses (internal, harmful): limitations that place the organisation at a disadvantage
• Opportunities (external, helpful): external factors that could be exploited for benefit
• Threats (external, harmful): external factors that could cause problems

The key distinction

Strengths and weaknesses are internal (within your control); opportunities and threats are external (in the environment). The most common mistake is confusing the two — listing an external market trend as a 'strength' rather than an 'opportunity'. Use our free SWOT analysis template to structure the analysis correctly.