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SWOT Analysis: How To Do One [With Template & Examples]

Published: October 05, 2023

As your business grows, you need a roadmap to help navigate the obstacles, challenges, opportunities, and projects that come your way. Enter: the SWOT analysis.

This framework can help you develop a plan to determine your priorities, maximize opportunities, and minimize roadblocks as you scale your organization. Below, let’s go over exactly what a SWOT analysis is, a few SWOT analysis examples, and how to conduct one for your business.

When you’re done reading, you’ll have all the inspiration and tactical advice you need to tackle a SWOT analysis for your business.

What is a SWOT analysis? Importance of a SWOT Analysis How to Write a Good SWOT Analysis SWOT Analysis Examples How to Act on a SWOT Analysis

What is a SWOT analysis?

A SWOT analysis is a strategic planning technique that puts your business in perspective using the following lenses: Strengths, Weaknesses, Opportunities, and Threats. Using a SWOT analysis helps you identify ways your business can improve and maximize opportunities, while simultaneously determining negative factors that might hinder your chances of success.

While it may seem simple on the surface, a SWOT analysis allows you to make unbiased evaluations on:

• Your business or brand.
• Market positioning.
• A new project or initiative.
• A specific campaign or channel.

Practically anything that requires strategic planning, internal or external, can have the SWOT framework applied to it, helping you avoid unnecessary errors down the road from lack of insight.

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Importance of a SWOT Analysis

You’ve noticed by now that SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The framework seems simple enough that you’d be tempted to forgo using it at all, relying instead on your intuition to take these things into account.

But you shouldn’t. Doing a SWOT analysis is important. Here’s why.

SWOT gives you the chance to worry and to dream.

A SWOT analysis is an important step in your strategic process because it gives you the opportunity to explore both the potential risks and the exciting possibilities that lie ahead.  You’re giving yourself the space to dream, evaluate, and worry before taking action. Your insights then turn into assets as you create the roadmap for your initiative.

For instance, when you consider the weaknesses and threats that your business may face, you can address any concerns or challenges and strategize on how to mitigate those risks. At the same time, you can identify strengths and opportunities, which can inspire innovative ideas and help you dream big. Both are equally important. 

SWOT forces you to define your variables.

Instead of diving head first into planning and execution, you’re taking inventory of all your assets and roadblocks. This process will help you  develop strategies that leverage your strengths and opportunities while addressing and mitigating the impact of weaknesses and threats.

As a result, you'll gain a comprehensive understanding of your current situation and create a more specific and effective roadmap. Plus, a SWOT analysis is inherently proactive. That means you'll be better equipped to make informed decisions, allocate resources effectively, and set realistic goals. 

SWOT allows you to account for mitigating factors.

As you identify weaknesses and threats, you’re better able to account for them in your roadmap, improving your chances of success.

Moreover, accounting for mitigating factors allows you to allocate your resources wisely and make informed decisions that lead to sustainable growth. With a SWOT analysis as a guide, you can confidently face challenges and seize opportunities.

SWOT helps you keep a written record.

As your organization grows and changes, you’ll be able to strike things off your old SWOTs and make additions. You can look back at where you came from and look ahead at what’s to come.

In other words, SWOT analyses serve as a tangible history of your progress and provide a reference point for future decision-making. With each update, your SWOT analysis becomes a living document that guides your strategic thinking and helps you stay agile and adaptable in an ever-changing business landscape.

By maintaining this written record, you foster a culture of continuous improvement and empower your team to make data-driven decisions and stay aligned with your long-term vision.

Parts of a SWOT Analysis

Conducting a SWOT analysis will help you strategize effectively, unlock valuable insights, and make informed decisions. But what exactly does a SWOT analysis include?

Let’s explore each component: Strengths, Weaknesses, Opportunities, and Threats.

Your strengths are the unique advantages and internal capabilities that give your company a competitive edge in the market. A strong brand reputation, innovative products or services, or exceptional customer service are just a few examples. By identifying and capitalizing on your strengths, you can foster customer loyalty and build a solid foundation for growth.

No business is flawless. Weaknesses are areas where you may face challenges or fall short of your potential. It could be outdated processes, skill gaps within the team, or inadequate resources. By acknowledging these weaknesses, you can establish targeted initiatives for improvement, upskill your team, adopt new technologies, and enhance your overall operational efficiency.

Opportunities are external factors that can contribute to your company's progress. These may include emerging markets, technological advancements, changes in consumer behavior, or gaps in the market that your company can fill. By seizing these opportunities, you can expand your market reach, diversify your product offerings, forge strategic partnerships, or even venture into untapped territories.

Threats are external factors that are beyond your control and pose challenges to your business. Increased competition, economic volatility, evolving regulatory landscapes, or even changing market trends are examples of threats. By proactively assessing and addressing them, you can develop contingency plans, adjust your strategies, and minimize their impact on your operations.

In a SWOT analysis, you’ll have to take both internal and external factors into account. We’ll cover those next.

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SWOT Analysis Internal and External Factors

A SWOT analysis typically has internal (i.e., within your organization) and external (i.e., outside your organization) factors at play. Here's a breakdown of each.

Internal Factors

Internal factors refer to the characteristics and resources within your organization that directly influence its operations and performance. These factors are completely within your organization's control, so they can be modified, improved, or capitalized upon.

In a SWOT analysis, strengths and weaknesses are categorized as internal factors. Let’s look at a few examples.

• Brand reputation
• Unique expertise
• Loyal customer base
• Talented workforce
• Efficient processes
• Proprietary technology
• Outdated technology
• Inadequate resources
• Poor financial health
• Inefficient processes
• Skill gaps within the team

External Factors

External factors are elements outside the organization's control that have an impact on its operations, market position, and success. These factors arise from the industry climate and the broader business environment. You typically have no control over external factors, but you can respond to them.

In a SWOT analysis, opportunities and threats are categorized as external factors. Let’s look at a few examples.

• Emerging markets
• Changing consumer trends
• Technological advancements
• Positive shifts in regulations
• New gaps in the market you could fill
• Intense competition
• Economic downturns
• Disruptive technologies
• Changing regulations
• Negative shifts in consumer behavior

Remember, a well-rounded SWOT analysis empowers you to capitalize on strengths, address weaknesses, seize opportunities, and navigate threats — all while making informed decisions for the future.

Now, let’s take a look at how you can write a good SWOT analysis for yourself or for stakeholders.

How do you write a good SWOT analysis?

There are several steps you’ll want to take when evaluating your business and conducting a strategic SWOT analysis.

1. Download HubSpot's SWOT Analysis Template.

There’s no need to start from scratch for your analysis. Instead, start by downloading a free, editable template from HubSpot. Feel free to use the model yourself, or create your own as it suits your needs.

3. Identify your objective.

Before you start writing things down, you’ll need to figure out what you’re evaluating with your SWOT analysis.

Be specific about what you want to analyze. Otherwise, your SWOT analysis may end up being too broad, and you’ll get analysis paralysis as you are making your evaluations.

If you’re creating a new social media program, you’ll want to conduct an analysis to inform your content creation strategy. If you’re launching a new product, you’ll want to understand its potential positioning in the space. If you’re considering a brand redesign, you’ll want to consider existing and future brand conceptions.

All of these are examples of good reasons to conduct a SWOT analysis. By identifying your objective, you’ll be able to tailor your evaluation to get more actionable insights.

4. Identify your strengths.

“Strengths” refers to what you are currently doing well. Think about the factors that are going in your favor as well as the things you offer that your competitors just can’t beat.

For example, let’s say you want to use a SWOT analysis to evaluate your new social media strategy.

If you’re looking at a new social media program, perhaps you want to evaluate how your brand is perceived by the public. Is it easily recognizable and well-known? Even if it’s not popular with a widespread group, is it well-received by a specific audience?

Next, think about your process: Is it effective or innovative? Is there good communication between marketing and sales?

Finally, evaluate your social media message, and in particular, how it differs from the rest of the industry. I’m willing to bet you can make a lengthy list of some major strengths of your social media strategy over your competitors, so try to dive into your strengths from there.

5. Identify your weaknesses.

In contrast to your strengths, what are the roadblocks hindering you from reaching your goals? What do your competitors offer that continues to be a thorn in your side?

This section isn’t about dwelling on negative aspects. Rather, it’s critical to foresee any potential obstacles that could mitigate your success.

When identifying weaknesses, consider what areas of your business are the least profitable, where you lack certain resources, or what costs you the most time and money. Take input from employees in different departments, as they’ll likely see weaknesses you hadn’t considered.

If you’re examining a new social media strategy, you might start by asking yourself these questions: First, if I were a consumer, what would prevent me from buying this product, or engaging with this business? What would make me click away from the screen?

Second, what do I foresee as the biggest hindrance to my employees’ productivity, or their ability to get the job done efficiently? What derails their social media efforts?

6. Consider your opportunities.

This is your chance to dream big. What are some opportunities for your social media strategy you hope, but don’t necessarily expect, to reach?

For instance, maybe you’re hoping your Facebook ads will attract a new, larger demographic. Maybe you’re hoping your YouTube video gets 10,000 views and increases sales by 10%.

Whatever the case, it’s important to include potential opportunities in your SWOT analysis. Ask yourself these questions:

• What technologies do I want my business to use to make it more effective?
• What new target audience do I want to reach?
• How can the business stand out more in the current industry?
• Is there something our customers complain about that we could fix?

The opportunities category goes hand-in-hand with the weaknesses category. Once you’ve made a list of weaknesses, it should be easy to create a list of potential opportunities that could arise if you eliminate your weaknesses.

7. Contemplate your threats.

It’s likely, especially if you’re prone to worry, you already have a good list of threats in your head.

If not, gather your employees and brainstorm. Start with these questions:

• What obstacles might prevent us from reaching our goals?
• What’s going on in the industry, or with our competitors, that might mitigate our success?
• Is there new technology out there that could conflict with our product?

Writing down your threats helps you evaluate them objectively.

For instance, maybe you list your threats in terms of least and most likely to occur and divide and conquer each. If one of your biggest threats is your competitor’s popular Instagram account, you could work with your marketing department to create content that showcases your product’s unique features.

SWOT Analysis Chart

Download a free SWOT analysis chart included in HubSpot’s free market research kit .

A SWOT analysis doesn’t have to be fancy. Our SWOT analysis chart provides a clear and structured framework for capturing and organizing your internal strengths and weaknesses, and external opportunities and threats. It's the perfect visual aid to make sense of the wealth of information gathered during your analysis.

(Plus, you can always customize and paste it into a document you plan to share with stakeholders.)

But remember: Filling out the SWOT chart is just one step in the process. Combine it with our entire market research kit , and you'll have all the tools necessary to help your organization navigate new opportunities and threats.

SWOT Analysis Examples

The template above helps get you started on your own SWOT analysis.

But, if you’re anything like me, it’s not enough to see a template. To fully understand a concept, you need to see how it plays out in the real world.

These SWOT examples are not exhaustive. However, they are a great starting point to inspire you as you do your own SWOT analysis.

Apple’s SWOT analysis

Here’s how we’d conduct a SWOT analysis on Apple.

First off, strengths. While Apple has many strengths, let’s identify the top three:

• Brand recognition.
• Innovative products.
• Ease of use.

Apple’s brand is undeniably strong, and its business is considered the most valuable in the world . Since it’s easily recognized, Apple can produce new products and almost ensure a certain degree of success by virtue of the brand name itself.

Apple’s highly innovative products are often at the forefront of the industry. One thing that sets Apple apart from the competition is its product inter-connectivity.

For instance, an Apple user can easily sync their iPhone and iPad together. They can access all of their photos, contacts, apps, and more no matter which device they are using.

Lastly, customers enjoy how easy it is to use Apple’s products. With a sleek and simple design, each product is developed so that most people can quickly learn how to use them.

Next, let’s look at three of Apple’s weaknesses.

• High prices
• Closed ecosystem
• Lack of experimentation

While the high prices don’t deter Apple’s middle- and upper-class customer base, they do hinder Apple’s ability to reach a lower-class demographic.

Apple also suffers from its own exclusivity. Apple controls all its services and products in-house, and while many customers become loyal brand advocates for this reason, it means all burdens fall on Apple employees.

Ultimately, Apple’s tight control over who distributes its products limits its market reach.

Lastly, Apple is held to a high standard when it comes to creating and distributing products. Apple’s brand carries a high level of prestige. That level of recognition inhibits Apple from taking risks and experimenting freely with new products that could fail.

Now, let’s take a look at opportunities for Apple.

It’s easy to recognize opportunities for improvement, once you consider Apple’s weaknesses. Here’s a list of three we came up with:

• Expand distribution options.
• Create new product lines.
• Technological advancement.

One of Apple’s biggest weaknesses is its distribution network, which, in the name of exclusivity, remains relatively small. If Apple expanded its network and enabled third-party businesses to sell its products, it could reach more people globally, while alleviating some of the stress currently put on in-house employees.

There are also plenty of opportunities for Apple to create new products. Apple could consider creating more affordable products to reach a larger demographic, or spreading out into new industries — Apple self-driving cars, perhaps?

Finally, Apple could continue advancing its products’ technology. Apple can take existing products and refine them, ensuring each product offers as many unique features as possible.

Finally, let’s look at threats to Apple.

Believe it or not, they do exist.

Here are three of Apple’s biggest threats:

• Tough competition.
• International issues.

Apple isn’t the only innovative tech company out there, and it continues to face tough competition from Samsung, Google, and other major forces. In fact, Samsung sold more smartphones than Apple did in Q1 of 2022 , shipping 17 million more units than Apple and holding 24% of the market share.

Many of Apple’s weaknesses hinder Apple’s ability to compete with the tech corporations that have more freedom to experiment, or that don’t operate in a closed ecosystem.

A second threat to Apple is lawsuits. Apple has faced plenty of lawsuits, particularly between Apple and Samsung . These lawsuits interfere with Apple’s reputable image and could steer some customers to purchase elsewhere.

Finally, Apple needs to improve its reach internationally. The company isn’t number one in China and doesn’t have a very positive relationship with the Chinese government. In India, which has one of the largest consumer markets in the world, Apple’s market share is low , and the company has trouble bringing stores to India’s market.

If Apple can’t compete globally the way Samsung or Google can, it risks falling behind in the industry.

Starbucks SWOT Analysis

Now that we’ve explored the nuances involved with a SWOT analysis, let’s fill out a SWOT template using Starbucks as an example.

Here’s how we’d fill out a SWOT template if we were Starbucks:

Download this Template for Free

Restaurant Small Business SWOT Analysis

Some small business marketers may have difficulty relating to the SWOTs of big brands like Apple and Starbucks. Here’s an example of how a dine-in Thai restaurant might visualize each element.

Small restaurants can lean into their culinary expertise and service skills to find opportunities for growth and brand awareness. A SWOT analysis can also help identify weaknesses that can be improved, such as menu variation and pricing.

While a restaurant might not be as worried about high-level lawsuits, a small business might be more concerned about competitors or disruptors that might enter the playing field.

Local Boutique SWOT Analysis

In another small business example, let’s take a look at a SWOT analysis for a local boutique.

This shop might be well known in its neighborhood, but it also might take time to build an online presence or get its products in an online store.

Because of this, some of its strengths and opportunities might relate to physical factors while weaknesses and threats might relate to online situations.

How to Act on a SWOT Analysis

After conducting a SWOT analysis, you may be asking yourself: What’s next?

Putting together a SWOT analysis is only one step. Executing the findings identified by the analysis is just as important — if not more.

Put your insights into action using the following steps.

Take advantage of your strengths.

Use your strengths to pursue opportunities from your analysis.

For example, if we look at the local boutique example above, the strength of having affordable prices can be a value proposition. You can emphasize your affordable prices on social media or launch an online store.

Address your weaknesses.

Back to the boutique example, one of its weaknesses is having a poor social media presence. To mitigate this, the boutique could hire a social media consultant to improve its strategy. They may even tap into the expertise of a social-savvy employee.

Make note of the threats.

Threats are often external factors that can’t be controlled, so it’s best to monitor the threats outlined in your SWOT analysis to be aware of their impacts on your business.

When to Use a SWOT Analysis

While the examples above focus on business strategy in general, you can also use a SWOT analysis to evaluate and predict how a singular product will play out in the market.

Ultimately, a SWOT analysis can measure and tackle both big and small challenges, from deciding whether or not to launch a new product to refining your social media strategy.

Editor's note: This post was originally published in May 2018 and has been updated for comprehensiveness.

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SWOT analysis: Examples and templates

A SWOT analysis helps you identify strengths, weaknesses, opportunities, and threats for a specific project or your overall business plan. It’s used for strategic planning and to stay ahead of market trends. Below, we describe each part of the SWOT framework and show you how to conduct your own.

Whether you’re looking for external opportunities or internal strengths, we’ll walk you through how to perform your own SWOT analysis, with helpful examples along the way. 

What is a SWOT analysis?

A SWOT analysis is a technique used to identify strengths, weaknesses, opportunities, and threats for your business or even a specific project. It’s most widely used by organizations—from small businesses and non-profits to large enterprises—but a SWOT analysis can be used for personal purposes as well. 

While simple, a SWOT analysis is a powerful tool for helping you identify competitive opportunities for improvement. It helps you improve your team and business while staying ahead of market trends.

What does SWOT stand for?

SWOT is an acronym that stands for: 

Opportunities

When analyzed together, the SWOT framework can paint a larger picture of where you are and how to get to the next step. Let’s dive a little deeper into each of these terms and how they can help identify areas of improvement. 

Strengths in SWOT refer to internal initiatives that are performing well. Examining these areas helps you understand what’s already working. You can then use the techniques that you know work—your strengths—in other areas that might need additional support, like improving your team’s efficiency . 

When looking into the strengths of your organization, ask yourself the following questions:

What do we do well? Or, even better: What do we do best?

What’s unique about our organization?

What does our target audience like about our organization?

Which categories or features beat out our competitors?

 Example SWOT strength:

Customer service: Our world-class customer service has an NPS score of 90 as compared to our competitors, who average an NPS score of 70.

Weaknesses in SWOT refer to internal initiatives that are underperforming. It’s a good idea to analyze your strengths before your weaknesses in order to create a baseline for success and failure. Identifying internal weaknesses provides a starting point for improving those projects.

Identify the company’s weaknesses by asking:

Which initiatives are underperforming and why?

What can be improved?

What resources could improve our performance?

How do we rank against our competitors?

Example SWOT weakness:

E-commerce visibility: Our website visibility is low because of a lack of marketing budget , leading to a decrease in mobile app transactions.

Opportunities in SWOT result from your existing strengths and weaknesses, along with any external initiatives that will put you in a stronger competitive position. These could be anything from weaknesses that you’d like to improve or areas that weren’t identified in the first two phases of your analysis. 

Since there are multiple ways to come up with opportunities, it’s helpful to consider these questions before getting started:

What resources can we use to improve weaknesses?

Are there market gaps in our services?

What are our business goals for the year?

What do your competitors offer?

Example SWOT opportunities:

Marketing campaign: To improve brand visibility, we’ll run ad campaigns on YouTube, Facebook, and Instagram.

Threats in SWOT are areas with the potential to cause problems. Different from weaknesses, threats are external and ‌out of your control. This can include anything from a global pandemic to a change in the competitive landscape. 

Here are a few questions to ask yourself to identify external threats:

What changes in the industry are cause for concern?

What new market trends are on the horizon?

Where are our competitors outperforming us?

Example SWOT threats:

New competitor: With a new e-commerce competitor set to launch within the next month, we could see a decline in customers.

SWOT analysis example

One of the most popular ways to create a SWOT analysis is through a SWOT matrix—a visual representation of strengths, weaknesses, opportunities, and threats. The matrix comprises four separate squares that create one larger square. 

A SWOT matrix is great for collecting information and documenting the questions and decision-making process . Not only will it be handy to reference later on, but it’s also great for visualizing any patterns that arise. 

Check out the SWOT matrix below for a simple example. As you can see, each of the quadrants lists out the company's strengths, weaknesses, opportunities, and threats.

When used correctly and effectively, your matrix can be a great toolkit for evaluating your organization’s strengths and weaknesses. 

How to do a SWOT analysis, with examples 

A SWOT analysis can be conducted in a variety of ways. Some teams like to meet and throw ideas on a whiteboard, while others prefer the structure of a SWOT matrix. However you choose to make your SWOT analysis, getting creative with your planning process allows new ideas to flow and results in more unique solutions. 

There are a few ways to ensure that your SWOT analysis is thorough and done correctly. Let’s take a closer look at some tips to help you get started.

Tip 1: Consider internal factors 

Often, strengths and weaknesses stem from internal processes. These tend to be easier to solve since you have more control over the outcome. When you come across internal factors, you can start implementing improvements in a couple of different ways.

Meet with department stakeholders to form a business plan around how to improve your current situation.

Research and implement new tools, such as a project management tool , that can help streamline these processes for you. 

Take immediate action on anything that can be changed in 24 hours or less. If you don’t have the capacity, consider delegating these items to others with deadlines. 

The way you go about solving internal factors will depend on the type of problem. If it’s more complex, you might need to use a combination of the above or a more thorough problem management process.

Tip 2: Evaluate external factors

External factors stem from processes outside of your control. This includes competitors, market trends, and anything else that’s affecting your organization from the outside in. 

External factors are trickier to solve, as you can’t directly control the outcome. What you can do is pivot your own processes in a way that mitigates negative external factors. 

You can work to solve these issues by:

Competing with market trends

Forecasting market trends before they happen

Improving adaptability to improve your reaction time

Track competitors using reporting tools that automatically update you as soon as changes occur 

While you won’t be able to control an external environment, you can control how your organization reacts to it. 

Let’s say, for instance, that you’re looking to compete with a market trend. For example, a competitor introduced a new product to the market that’s outperforming your own. While you can’t take that product away, you can work to launch an even better product or marketing campaign to mitigate any decline in sales. 

Tip 3: Hold a brainstorming session

Brainstorming new and innovative ideas can help to spur creativity and inspire action. To host a high impact brainstorming session, you’ll want to: 

Invite team members from various departments. That way, ideas from each part of the company are represented. 

Be intentional about the number of team members you invite, since too many participants could lead to a lack of focus or participation. The sweet spot for a productive brainstorming session is around 10 teammates. 

Use different brainstorming techniques that appeal to different work types.

Set a clear intention for the session.

Tip 4: Get creative

In order to generate creative ideas, you have to first invite them. That means creating fun ways to come up with opportunities. Try randomly selecting anonymous ideas, talking through obviously bad examples, or playing team building games to psych up the team.

Tip 5: Prioritize opportunities

Now, rank the opportunities. This can be done as a team or with a smaller group of leaders. Talk through each idea and rank it on a scale of one through 10. Once you’ve agreed on your top ideas based on team capabilities, competencies, and overall impact, it’s easier to implement them.

Tip 6: Take action

It’s all too easy to feel finished at this stage —but the actual work is just beginning. After your SWOT analysis, you’ll have a list of prioritized opportunities. Now is the time to turn them into strengths. Use a structured system such as a business case , project plan, or implementation plan to outline what needs to get done—and how you plan to do it.

SWOT analysis template

A SWOT analysis template is often presented in a grid format, divided into four quadrants. Each quadrant represents one of the four elements. 

Use this free SWOT analysis template to jump-start your team’s strategic planning.

Identify the strengths that contribute to achieving your objectives. These are internal characteristics that give you an advantage. Some examples could be a strong brand reputation, an innovative culture, or an experienced management team.

Next, focus on weaknesses. These are internal factors that could serve as obstacles to achieving your objectives. Common examples might include a lack of financial resources, high operational costs, or outdated technology. 

Move on to the opportunities. These are external conditions that could be helpful in achieving your goals. For example, you might be looking at emerging markets, increased demand, or favorable shifts in regulations.

Lastly, let's address threats. These are external conditions that could negatively impact your objectives. Examples include increased competition or potential economic downturns.

Why is a SWOT analysis important?

A SWOT analysis can help you improve processes and plan for growth. While similar to a competitive analysis , it differs because it evaluates both internal and external factors. Analyzing key areas around these opportunities and threats will equip you with the insights needed to set your team up for success.

A SWOT analysis isn’t only useful for organizations. With a personal SWOT analysis, you can examine areas of your life that could benefit from improvement, from your leadership style to your communication skills. These are the benefits of using a SWOT analysis in any scenario. 

1. Identifies areas of opportunity

One of the biggest benefits of conducting an analysis is to determine opportunities for growth. It’s a great starting point for startups and teams that know they want to improve but aren’t exactly sure how to get started. 

Opportunities can come from many different avenues, like external factors such as diversifying your products for competitive advantage or internal factors like improving your team’s workflow . Either way, capitalizing on opportunities is an excellent way to grow as a team.

2. Identifies areas that could be improved

Identifying weaknesses and threats during a SWOT analysis can pave the way for a better business strategy.

Ultimately, learning from your mistakes is the best way to excel. Once you find areas to streamline, you can work with team members to brainstorm an action plan . This will let you use what you already know works and build on your company’s strengths.

3. Identifies areas that could be at risk

Whether you have a risk register in place or not, it’s always crucial to identify risks before they become a cause for concern. A SWOT analysis can help you stay on top of actionable items that may play a part in your risk decision-making process. 

It may be beneficial to pair your SWOT analysis with a PEST analysis, which examines external solutions such as political, economic, social, and technological factors—all of which can help you identify and plan for project risks .

When should you use a SWOT analysis?

You won’t always need an in-depth SWOT analysis. It’s most useful for large, general overviews of situations, scenarios, or your business.

A SWOT analysis is most helpful:

Before you implement a large change—including as part of a larger change management plan

When you launch a new company initiative

If you’d like to identify opportunities for growth and improvement

Any time you want a full overview of your business performance

If you need to identify business performance from different perspectives

SWOT analyses are general for a reason—so they can be applied to almost any scenario, project, or business. 

SWOT analysis: Pros and cons

Although SWOT is a useful strategic planning tool for businesses and individuals alike, it does have limitations. Here’s what you can expect.

The simplicity of SWOT analysis makes it a go-to tool for many. Because it is simple, it takes the mystery out of strategic planning and lets people think critically about their situations without feeling overwhelmed. 

For instance, a small bakery looking to expand its operations can use SWOT analysis to easily understand its current standing. Identifying strengths like a loyal customer base, weaknesses such as limited seating space, opportunities like a rising trend in artisanal baked goods, and threats from larger chain bakeries nearby can all be accomplished without any specialized knowledge or technical expertise.

Versatility

Its versatile nature allows SWOT analysis to be used across various domains. Whether it’s a business strategizing for the future or an individual planning their career path, SWOT analysis lends itself well. 

For example, a tech start-up in the competitive Silicon Valley landscape could employ SWOT to navigate its pathway to profitability. Strengths might include a highly skilled development team; weaknesses could be a lack of brand recognition; opportunities might lie in emerging markets; and threats could include established tech giants. 

Meaningful analysis

SWOT excels in identifying external factors that could impact performance. It nudges organizations to look beyond the present and anticipate potential future scenarios. 

A retail company, for example, could use SWOT analysis to identify opportunities in e-commerce and threats from changing consumer behavior or new competitors entering the market. By doing so, the company can strategize on how to leverage online platforms to boost sales and counteract threats by enhancing the customer experience or adopting new technologies.

Subjectivity and bias

The subjective nature of SWOT analysis may lead to biases. It relies heavily on individual perceptions, which can sometimes overlook crucial data or misinterpret information, leading to skewed conclusions. 

For example, a manufacturing company might undervalue the threat of new entrants in the market due to an overconfidence bias among the management. This subjectivity might lead to a lack of preparation for competitive pricing strategies, ultimately affecting the company's market share.

Lack of prioritization

SWOT analysis lays out issues but falls short on prioritizing them. Organizations might struggle to identify which elements deserve immediate attention and resources. 

For instance, a healthcare provider identifying numerous opportunities for expansion into new services may become overwhelmed with the choices. Without a clear way to rank these opportunities, resources could be spread too thinly or given to projects that do not have as much of an impact, leading to less-than-ideal outcomes.

Static analysis

Since SWOT analysis captures a snapshot at a particular moment, it may miss the evolving nature of challenges and opportunities, possibly leading to outdated strategies. An example could be a traditional retail business that performs a SWOT analysis and decides to focus on expanding physical stores, overlooking the growing trend of e-commerce. As online shopping continues to evolve and gain popularity, the static analysis might lead to investment in areas with diminishing returns while missing out on the booming e-commerce market trend.

SWOT analysis FAQ

What are the five elements of swot analysis.

Traditionally, SWOT stands for its four main elements: strengths, weaknesses, opportunities, and threats. However, a fifth essential element often overlooked is "actionable strategies." Originally developed by Albert Humphrey, SWOT is more than just a list—it's a planning tool designed to generate actionable strategies for making informed business decisions. This fifth element serves to tie the other four together, enabling departments like human resources and marketing to turn analysis into actionable plans.

What should a SWOT analysis include?

A comprehensive SWOT analysis should focus on the internal and external factors that affect your organization. Internally, consider your strong brand and product line as your strengths, and maybe your supply chain weaknesses. Externally, you'll want to look at market share, partnerships, and new technologies that could either pose opportunities or threats. You should also account for demographics, as it helps in market targeting and segmentation.

How do you write a good SWOT analysis?

Writing an effective SWOT analysis begins with research. Start by identifying your strengths, like a strong brand, and your weaknesses, like a small human resources department. Following that, look outward to find opportunities, possibly in technological advancement, and threats, like fluctuations in market share. Many businesses find it helpful to use a free SWOT analysis template to structure this information. A good SWOT analysis doesn't just list these elements; it integrates them to provide a clear roadmap for making business decisions.

What are four examples of threats in SWOT analysis?

New technologies: Rapid technological advancement can make your product or service obsolete.

Supply chain disruptions: Whether due to natural disasters or geopolitical tensions, an unstable supply chain can seriously jeopardize your operations.

Emerging competitors: New players entering the market can erode your market share and offer alternative solutions to your customer base.

Regulatory changes: New laws or regulations can add costs and complexity to your business, affecting your competitiveness.

How do you use a SWOT analysis?

Once you've completed a SWOT analysis, use the results as a decision-making aid. It can help prioritize actions, develop strategic plans that play to your strengths, improve weaknesses, seize opportunities, and counteract threats. It’s a useful tool for setting objectives and creating a roadmap for achieving them.

Plan for growth with a SWOT analysis

A SWOT analysis can be an effective technique for identifying key strengths, weaknesses, opportunities, and threats. Understanding where you are now can be the most impactful way to determine where you want to go next. 

Don’t forget, a bit of creativity and collaboration can go a long way. Encourage your team to think outside of the box with 100+ team motivational quotes .

Related resources

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3 visual project management layouts (and how to use them)

Grant management: A nonprofit’s guide

Everything you need to know about waterfall project management

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What Is a SWOT Analysis and How to Do It Right (With Examples)

Posted february 2, 2021 by noah parsons.

A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business strategy, whether you’re building a startup or guiding an existing company.

What is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are internal to your company—things that you have some control over and can change. Examples include who is on your team, your patents and intellectual property, and your location.

Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.

A SWOT analysis organizes your top strengths, weaknesses, opportunities, and threats into an organized list and is usually presented in a simple two-by-two grid. Go ahead and download our free template if you just want to dive right in and get started.

Why do a SWOT Analysis?

When you take the time to do a SWOT analysis, you’ll be armed with a solid strategy for prioritizing the work that you need to do to grow your business.

You may think that you already know everything that you need to do to succeed, but a SWOT analysis will force you to look at your business in new ways and from new directions. You’ll look at your strengths and weaknesses, and how you can leverage those to take advantage of the opportunities and threats that exist in your market.

Who should do a SWOT Analysis?

For a SWOT analysis to be effective, company founders and leaders need to be deeply involved. This isn’t a task that can be delegated to others.

But, company leadership shouldn’t do the work on their own , either. For best results, you’ll want to gather a group of people who have different perspectives on the company. Select people who can represent different aspects of your company, from sales and customer service to marketing and product development. Everyone should have a seat at the table.

Innovative companies even look outside their own internal ranks when they perform a SWOT analysis and get input from customers to add their unique voice to the mix.

If you’re starting or running a business on your own, you can still do a SWOT analysis. Recruit additional points of view from friends who know a little about your business, your accountant, or even vendors and suppliers. The key is to have different points of view.

Existing businesses can use a SWOT analysis to assess their current situation and determine a strategy to move forward . But, remember that things are constantly changing and you’ll want to reassess your strategy, starting with a new SWOT analysis every six to 12 months.

For startups, a SWOT analysis is part of the business planning process. It’ll help codify a strategy so that you start off on the right foot and know the direction that you plan to go.

How to do a SWOT analysis the right way

As I mentioned above, you want to gather a team of people together to work on a SWOT analysis. You don’t need an all-day retreat to get it done, though. One or two hours should be more than plenty.

1. Gather the right people

Gather people from different parts of your company and make sure that you have representatives from every department and team. You’ll find that different groups within your company will have entirely different perspectives that will be critical to making your SWOT analysis successful.

2. Throw your ideas at the wall

Doing a SWOT analysis is similar to brainstorming meetings, and there are right and wrong ways to run them. I suggest giving everyone a pad of sticky-notes and have everyone quietly generate ideas on their own to start things off. This prevents groupthink and ensures that all voices are heard.

After five to 10 minutes of private brainstorming, put all the sticky-notes up on the wall and group similar ideas together. Allow anyone to add additional notes at this point if someone else’s idea sparks a new thought.

3. Rank the ideas

Once all of the ideas are organized, it’s time to rank the ideas. I like using a voting system where everyone gets five or ten “votes” that they can distribute in any way they like. Sticky dots in different colors are useful for this portion of the exercise.

Based on the voting exercise, you should have a prioritized list of ideas. Of course, the list is now up for discussion and debate, and someone in the room should be able to make the final call on the priority. This is usually the CEO, but it could be delegated to someone else in charge of business strategy.

You’ll want to follow this process of generating ideas for each of the four quadrants of your SWOT analysis: Strengths, Weaknesses, Opportunities, and Threats.

Questions that can help inspire your analysis

Here are a few questions that you can ask your team when you’re building your SWOT analysis. These questions can help explain each section and spark creative thinking.

Strengths are internal, positive attributes of your company. These are things that are within your control.

• What business processes are successful?
• What assets do you have in your teams? (ie. knowledge, education, network, skills, and reputation)
• What physical assets do you have, such as customers, equipment, technology, cash, and patents?
• What competitive advantages do you have over your competition?

Weaknesses are negative factors that detract from your strengths. These are things that you might need to improve on to be competitive.

• Are there things that your business needs to be competitive?
• What business processes need improvement?
• Are there tangible assets that your company needs, such as money or equipment?
• Are there gaps on your team?
• Is your location ideal for your success?

Opportunities

Opportunities are external factors in your business environment that are likely to contribute to your success.

• Is your market growing and are there trends that will encourage people to buy more of what you are selling?
• Are there upcoming events that your company may be able to take advantage of to grow the business?
• Are there upcoming changes to regulations that might impact your company positively?
• If your business is up and running, do customers think highly of you?

Threats are external factors that you have no control over. You may want to consider putting in place contingency plans for dealing with them if they occur.

• Do you have potential competitors who may enter your market?
• Will suppliers always be able to supply the raw materials you need at the prices you need?
• Could future developments in technology change how you do business?
• Is consumer behavior changing in a way that could negatively impact your business?
• Are there market trend s that could become a threat?

SWOT Analysis example

To help you get a better sense of what at SWOT example actually looks like, we’re going to look at UPer Crust Pies, a specialty meat and fruit pie cafe in Michigan’s Upper Peninsula. They sell hot, ready-to-go pies and frozen take-home options, as well as an assortment of fresh salads and beverages.

The company is planning to open its first location in downtown Yubetchatown and is very focused on developing a business model that will make it easy to expand quickly and that opens up the possibility of franchising. Here’s what their SWOT analysis might look like:

SWOT analysis for UPer Crust Pies

How to use your SWOT Analysis

With your SWOT analysis complete, you’re ready to convert it into a real strategy. After all, the exercise is about producing a strategy that you can work on during the next few months.

The first step is to look at your strengths and figure out how you can use those strengths to take advantage of your opportunities. Then, look at how your strengths can combat the threats that are in the market . Use this analysis to produce a list of actions that you can take.

With your action list in hand, look at your company calendar and start placing goals (or milestones) on it. What do you want to accomplish in each calendar quarter (or month) moving forward?

You’ll also want to do this by analyzing how external opportunities might help you combat your own, internal weaknesses. Can you also minimize those weaknesses so you can avoid the threats that you identified?

Again, you’ll have an action list that you’ll want to prioritize and schedule.

UPer Crust Pies — Potential strategies for growth

Back to the UPer Crust Pies example: Based on their SWOT analysis, here are a few potential strategies for growth to help you think through how to translate your SWOT into actionable goals.

• Investigate investors. UPer Crust Pies might investigate its options for obtaining capital.
• Create a marketing plan. Because UPer Crust Pies wants to execute a specific marketing strategy—targeting working families by emphasizing that their dinner option is both healthy and convenient—the company should develop a marketing plan.
• Plan a grand opening. A key piece of that marketing plan will be the store’s grand opening, and the promotional strategies necessary to get UPer Crust Pies’ target market in the door.

Next steps with your SWOT Analysis

With your goals and actions in hand, you’ll be a long way toward completing a strategic plan for your business. I like to use the Lean Planning methodology for strategic plans as well as regular business planning. The actions that you generate from your SWOT analysis will fit right into the milestones portion of your Lean Plan and will give you a concrete foundation that you can grow your business from. You can download our free Lean Plan template to help you get started.

If you have additional ideas for how a SWOT analysis can help your business and how it fits into your regular business planning, I’d love to hear from you. You can find me on Twitter @noahparsons .

Editor’s note: This article was originally published in 2018 and updated for 2021.

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Article • 17 min read

SWOT Analysis

Understanding your business, informing your strategy.

By the Mind Tools Content Team

Key Takeaways:

SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats.

A "SWOT analysis" involves carefully assessing these four factors in order to make clear and effective plans.

A SWOT analysis can help you to challenge risky assumptions, uncover dangerous blindspots, and reveal important new insights.

The SWOT analysis process is most effective when done collaboratively.

What Is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business.

SWOT Analysis is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future. SWOT can also uncover areas of the business that are holding you back, or that your competitors could exploit if you don't protect yourself.

A SWOT analysis examines both internal and external factors – that is, what's going on inside and outside your organization. So some of these factors will be within your control and some will not. In either case, the wisest action you can take in response will become clearer once you've discovered, recorded and analyzed as many factors as you can.

In this article, video and infographic, we explore how to carry out a SWOT analysis, and how to put your findings into action. We also include a worked example and a template to help you get started on a SWOT analysis in your own workplace.

Why Is SWOT Analysis Important?

SWOT analysis can help you to challenge risky assumptions and to uncover dangerous blindspots about your organization's performance. If you use it carefully and collaboratively, it can deliver new insights on where your business currently is, and help you to develop exactly the right strategy for any situation.

For example, you may be well aware of some of your organization's strengths, but until you record them alongside weaknesses and threats you might not realize how unreliable those strengths actually are.

Equally, you likely have reasonable concerns about some of your business weaknesses but, by going through the analysis systematically, you could find an opportunity, previously overlooked, that could more than compensate.

How to Write a SWOT Analysis

SWOT analysis involves making lists – but so much more, too! When you begin to write one list (say, Strengths), the thought process and research that you'll go through will prompt ideas for the other lists (Weaknesses, Opportunities or Threats). And if you compare these lists side by side, you will likely notice connections and contradictions, which you'll want to highlight and explore.

You'll find yourself moving back and forth between your lists frequently. So, make the task easier and more effective by arranging your four lists together in one view.

A SWOT matrix is a 2x2 grid, with one square for each of the four aspects of SWOT. (Figure 1 shows what it should look like.) Each section is headed by some questions to get your thinking started.

Figure 1. A SWOT Analysis Matrix.

Swot analysis template.

When conducting your SWOT analysis, you can either draw your own matrix, or use our free downloadable template .

How to Do a SWOT Analysis

Avoid relying on your own, partial understanding of your organization. Your assumptions could be wrong. Instead, gather a team of people from a range of functions and levels to build a broad and insightful list of observations.

Then, every time you identify a Strength, Weakness, Opportunity, or Threat, write it down in the relevant part of the SWOT analysis grid for all to see.

Let's look at each area in more detail and consider what fits where, and what questions you could ask as part of your data gathering.

Strengths are things that your organization does particularly well, or in a way that distinguishes you from your competitors. Think about the advantages your organization has over other organizations. These might be the motivation of your staff, access to certain materials, or a strong set of manufacturing processes.

Your strengths are an integral part of your organization, so think about what makes it "tick." What do you do better than anyone else? What values drive your business? What unique or lowest-cost resources can you draw upon that others can't? Identify and analyze your organization's Unique Selling Proposition (USP), and add this to the Strengths section.

Then turn your perspective around and ask yourself what your competitors might see as your strengths. What factors mean that you get the sale ahead of them?

Remember, any aspect of your organization is only a strength if it brings you a clear advantage. For example, if all of your competitors provide high-quality products, then a high-quality production process is not a strength in your market: it's a necessity.

Weaknesses, like strengths, are inherent features of your organization, so focus on your people, resources, systems, and procedures. Think about what you could improve, and the sorts of practices you should avoid.

Once again, imagine (or find out) how other people in your market see you. Do they notice weaknesses that you tend to be blind to? Take time to examine how and why your competitors are doing better than you. What are you lacking?

Be honest! A SWOT analysis will only be valuable if you gather all the information you need. So, it's best to be realistic now, and face any unpleasant truths as soon as possible.

Opportunities

Opportunities are openings or chances for something positive to happen, but you'll need to claim them for yourself!

They usually arise from situations outside your organization, and require an eye to what might happen in the future. They might arise as developments in the market you serve, or in the technology you use. Being able to spot and exploit opportunities can make a huge difference to your organization's ability to compete and take the lead in your market.

Think about good opportunities that you can exploit immediately. These don't need to be game-changers: even small advantages can increase your organization's competitiveness. What interesting market trends are you aware of, large or small, which could have an impact?

You should also watch out for changes in government policy related to your field. And changes in social patterns, population profiles, and lifestyles can all throw up interesting opportunities.

Threats include anything that can negatively affect your business from the outside, such as supply-chain problems, shifts in market requirements, or a shortage of recruits. It's vital to anticipate threats and to take action against them before you become a victim of them and your growth stalls.

Think about the obstacles you face in getting your product to market and selling. You may notice that quality standards or specifications for your products are changing, and that you'll need to change those products if you're to stay in the lead. Evolving technology is an ever-present threat, as well as an opportunity!

Always consider what your competitors are doing, and whether you should be changing your organization's emphasis to meet the challenge. But remember that what they're doing might not be the right thing for you to do. So, avoid copying them without knowing how it will improve your position.

Be sure to explore whether your organization is especially exposed to external challenges. Do you have bad debt or cash-flow problems, for example, that could make you vulnerable to even small changes in your market? This is the kind of threat that can seriously damage your business, so be alert.

Use PEST Analysis to ensure that you don't overlook threatening external factors. And PMESII-PT is an especially helpful check in very unfamiliar or uncertain environments.

A SWOT Analysis Example

Imagine this scenario: a small start-up consultancy wants a clear picture of its current situation, to decide on a future strategy for growth. The team gathers, and draws up the SWOT Analysis shown in Figure 2.

Figure 2. A Completed SWOT Analysis.

As a result of the team's analysis, it's clear that the consultancy's main strengths lie in its agility, technical expertise, and low overheads. These allow it to offer excellent customer service to a relatively small client base.

The company's weaknesses are also to do with its size. It will need to invest in training, to improve the skills base of the small staff. It'll also need to focus on retention, so it doesn't lose key team members.

There are opportunities in offering rapid-response, good-value services to local businesses and to local government organizations. The company can likely be first to market with new products and services, given that its competitors are slow adopters.

The threats require the consultancy to keep up-to-date with changes in technology. It also needs to keep a close eye on its largest competitors, given its vulnerability to large-scale changes in its market. To counteract this, the business needs to focus its marketing on selected industry websites, to get the greatest possible market presence on a small advertising budget.

Frequently Asked Questions About SWOT Analysis

1. who invented swot analysis.

Many people attribute SWOT Analysis to Albert S. Humphrey. However, there has been some debate on the originator of the tool, as discussed in the International Journal of Business Research .

2. What Does SWOT Analysis Stand For?

SWOT Analysis stands for Strengths, Weaknesses, Opportunities and Threats.

3. What Can a SWOT Analysis Be Used For?

SWOT analysis is a useful tool to help you determine your organization's position in the market. You can then use this information to create an informed strategy suited to your needs and capabilities.

4. How Do I Write a SWOT Analysis?

To conduct a SWOT analysis, you first need to create a 2x2 matrix grid. Each square is then assigned to one of the four aspects of SWOT. You can either draw this grid yourself or use our downloadable template to get started.

5. How Do SWOT Analysis and the TOWS Matrix compare?

While SWOT analysis puts the emphasis on the internal environment (your strengths and weaknesses), TOWS forces you to look at your external environment first (your threats and opportunities). In most cases, you'll do a SWOT Analysis first, and follow up with a TOWS Matrix to offer a broader context.

6. What Are the Biggest SWOT Analysis Mistakes?

• Making your lists too long. Ask yourself if your ideas are feasible as you go along.
• Being vague. Be specific to provide more focus for later discussions.
• Not seeing weaknesses. Be sure to ask customers and colleagues what they experience in real life.
• Not thinking ahead. It's easy to come up with nice ideas without taking them through to their logical conclusion. Always consider their practical impact.
• Being unrealistic. Don't plan in detail for opportunities that don't exist yet. For example, that export market you've been eyeing may be available at some point, but the trade negotiations to open it up could take years.
• Relying on SWOT Analysis alone. SWOT Analysis is valuable. But when you use it alongside other planning tools (SOAR, TOWS or PEST), the results will be more vigorous.

How to Use a SWOT Analysis

Use a SWOT Analysis to assess your organization's current position before you decide on any new strategy. Find out what's working well, and what's not so good. Ask yourself where you want to go, how you might get there – and what might get in your way.

Once you've examined all four aspects of SWOT, you'll want to build on your strengths, boost your weaker areas, head off any threats, and exploit every opportunity. In fact, you'll likely be faced with a long list of potential actions.

But before you go ahead, be sure to develop your ideas further. Look for potential connections between the quadrants of your matrix. For example, could you use some of your strengths to open up further opportunities? And, would even more opportunities become available by eliminating some of your weaknesses?

Finally, it's time to ruthlessly prune and prioritize your ideas, so that you can focus time and money on the most significant and impactful ones. Refine each point to make your comparisons clearer. For example, only accept precise, verifiable statements such as, "Cost advantage of $30/ton in sourcing raw material x," rather than, "Better value for money."

Remember to apply your learnings at the right level in your organization. For example, at a product or product-line level, rather than at the much vaguer whole-company level. And use your SWOT analysis alongside other strategy tools (for example, Core Competencies Analysis ), so that you get a comprehensive picture of the situation you're dealing with.

SWOT Analysis Tips

Here are four tips for getting more out of a SWOT analysis:

• Be specific. The more focused and accurate you are about the points you write down, the more useful your SWOT analysis will be.
• Work backwards. Experiment with filling in the four sections of your SWOT analysis in a different order, to stimulate new ways of thinking. Working backwards, in particular, from threats to strengths, may cast new light on the situation.
• Get together. Highlight the most useful people to contribute to your SWOT analysis, then gather information and ideas from them all.
• SWOT your competition ! To stay ahead of your competitors, carry out a regular SWOT analysis on them . Use everything you know about them to evaluate their situation, and use SWOT analysis to plan your competitive strategies accordingly.

It's also possible to carry out a Personal SWOT Analysis . This can be useful for developing your career in ways that take best advantage of your talents, abilities and opportunities.

SWOT Analysis Infographic

See SWOT Analysis represented in our infographic :

SWOT Analysis helps you to identify your organization's Strengths, Weaknesses, Opportunities, and Threats.

It guides you to build on what you do well, address what you're lacking, seize new openings, and minimize risks.

Apply a SWOT Analysis to assess your organization's position before you decide on any new strategy.

Use a SWOT matrix to prompt your research and to record your ideas. Avoid making huge lists of suggestions. Be as specific as you can, and be honest about your weaknesses.

Be realistic and rigorous. Prune and prioritize your ideas, to focus time and money on the most significant and impactful actions and solutions. Complement your use of SWOT with other tools.

Collaborate with a team of people from across the business. This will help to uncover a more accurate and honest picture.

Find out what's working well, and what's not so good. Ask yourself where you want to go, how you might get there – and what might get in your way.

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Comments (1)

SWOT is useless. When you try it and you find Weaknesses box bulging, but Strengths & Opportunities completely empty, what can that possibly achieve?

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What Is SWOT Analysis?

Understanding swot analysis, how to do a swot analysis, the bottom line.

• Fundamental Analysis

SWOT Analysis: How To With Table and Example

These frameworks are essential to fundamentally analyzing companies

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential.

A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, initiatives, or within its industry. The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a prescription.

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Key Takeaways

• SWOT analysis is a strategic planning technique that provides assessment tools.
• Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and new ideas.
• A SWOT analysis pulls information internal sources (strengths of weaknesses of the specific company) as well as external forces that may have uncontrollable impacts to decisions (opportunities and threats).
• SWOT analysis works best when diverse groups or voices within an organization are free to provide realistic data points rather than prescribed messaging.
• Findings of a SWOT analysis are often synthesized to support a single objective or decision that a company is facing.

Investopedia / Xiaojie Liu

SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity.

Using internal and external data , the technique can guide businesses toward strategies more likely to be successful, and away from those in which they have been, or are likely to be, less successful. Independent SWOT analysts, investors, or competitors can also guide them on whether a company, product line, or industry might be strong or weak and why.

SWOT analysis was first used to analyze businesses. Now, it's often used by governments, nonprofits, and individuals, including investors and entrepreneurs. There is seemingly limitless applications to the SWOT analysis.

Components of SWOT Analysis

Every SWOT analysis will include the following four categories. Though the elements and discoveries within these categories will vary from company to company, a SWOT analysis is not complete without each of these elements:

Strengths describe what an organization excels at and what separates it from the competition : a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund may have developed a proprietary trading strategy that returns market-beating results. It must then decide how to use those results to attract new investors.

Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital.

Opportunities

Opportunities refer to favorable external factors that could give an organization a competitive advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and market share .

Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things like rising costs for materials, increasing competition, tight labor supply. and so on.

Analysts present a SWOT analysis as a square segmented into four quadrants, each dedicated to an element of SWOT. This visual arrangement provides a quick overview of the company’s position. Although all the points under a particular heading may not be of equal importance, they all should represent key insights into the balance of opportunities and threats, advantages and disadvantages, and so forth.

The SWOT table is often laid out with the internal factors on the top row and the external factors on the bottom row. In addition, the items on the left side of the table are more positive/favorable aspects, while the items on the right are more concerning/negative elements.

A SWOT analysis can be broken into several steps with actionable items before and after analyzing the four components. In general, a SWOT analysis will involve the following steps.

Step 1: Determine Your Objective

A SWOT analysis can be broad, though more value will likely be generated if the analysis is pointed directly at an objective. For example, the objective of a SWOT analysis may focused only on whether or not to perform a new product rollout . With an objective in mind, a company will have guidance on what they hope to achieve at the end of the process. In this example, the SWOT analysis should help determine whether or not the product should be introduced.

Step 2: Gather Resources

Every SWOT analysis will vary, and a company may need different data sets to support pulling together different SWOT analysis tables. A company should begin by understanding what information it has access to, what data limitations it faces, and how reliable its external data sources are.

In addition to data, a company should understand the right combination of personnel to have involved in the analysis. Some staff may be more connected with external forces, while various staff within the manufacturing or sales departments may have a better grasp of what is going on internally. Having a broad set of perspectives is also more likely to yield diverse, value-adding contributions.

Step 3: Compile Ideas

For each of the four components of the SWOT analysis, the group of people assigned to performing the analysis should begin listing ideas within each category. Examples of questions to ask or consider for each group are in the table below.

Internal Factors

What occurs within the company serves as a great source of information for the strengths and weaknesses categories of the SWOT analysis. Examples of internal factors include financial and human resources , tangible and intangible (brand name) assets, and operational efficiencies.

Potential questions to list internal factors are:

• (Strength) What are we doing well?
• (Strength) What is our strongest asset?
• (Weakness) What are our detractors?
• (Weakness) What are our lowest-performing product lines?

External Factors

What happens outside of the company is equally as important to the success of a company as internal factors. External influences, such as monetary policies , market changes, and access to suppliers, are categories to pull from to create a list of opportunities and weaknesses.

Potential questions to list external factors are:

• (Opportunity) What trends are evident in the marketplace?
• (Opportunity) What demographics are we not targeting?
• (Threat) How many competitors exist, and what is their market share?
• (Threat) Are there new regulations that potentially could harm our operations or products?

Companies may consider performing this step as a "white-boarding" or "sticky note" session. The idea is there is no right or wrong answer; all participants should be encouraged to share whatever thoughts they have. These ideas can later be discarded; in the meantime, the goal should be to come up with as many items as possible to invoke creativity and inspiration in others.

Step 4: Refine Findings

With the list of ideas within each category, it is now time to clean-up the ideas. By refining the thoughts that everyone had, a company can focus on only the best ideas or largest risks to the company. This stage may require substantial debate among analysis participants, including bringing in upper management to help rank priorities.

Step 5: Develop the Strategy

Armed with the ranked list of strengths, weaknesses, opportunities, and threats, it is time to convert the SWOT analysis into a strategic plan. Members of the analysis team take the bulleted list of items within each category and create a synthesized plan that provides guidance on the original objective.

For example, the company debating whether to release a new product may have identified that it is the market leader for its existing product and there is the opportunity to expand to new markets. However, increased material costs, strained distribution lines, the need for additional staff, and unpredictable product demand may outweigh the strengths and opportunities. The analysis team develops the strategy to revisit the decision in six months in hopes of costs declining and market demand becoming more transparent.

Use a SWOT analysis to identify challenges affecting your business and opportunities that can enhance it. However, note that it is one of many techniques, not a prescription.

Benefits of SWOT Analysis

A SWOT analysis won't solve every major question a company has. However, there's a number of benefits to a SWOT analysis that make strategic decision-making easier.

• A SWOT analysis makes complex problems more manageable. There may be an overwhelming amount of data to analyze and relevant points to consider when making a complex decision. In general, a SWOT analysis that has been prepared by paring down all ideas and ranking bullets by importance will aggregate a large, potentially overwhelming problem into a more digestible report.
• A SWOT analysis requires external consider. Too often, a company may be tempted to only consider internal factors when making decisions. However, there are often items out of the company's control that may influence the outcome of a business decision. A SWOT analysis covers both the internal factors a company can manage and the external factors that may be more difficult to control.
• A SWOT analysis can be applied to almost every business question. The analysis can relate to an organization, team, or individual. It can also analyze a full product line , changes to brand, geographical expansion, or an acquisition. The SWOT analysis is a versatile tool that has many applications.
• A SWOT analysis leverages different data sources. A company will likely use internal information for strengths and weaknesses. The company will also need to gather external information relating to broad markets, competitors, or macroeconomic forces for opportunities and threats. Instead of relying on a single, potentially biased source, a good SWOT analysis compiles various angles.
• A SWOT analysis may not be overly costly to prepare. Some SWOT reports do not need to be overly technical; therefore, many different staff members can contribute to its preparation without training or external consulting.

SWOT Analysis Example

In 2015, a Value Line SWOT analysis of The Coca-Cola Company noted strengths such as its globally famous brand name, vast distribution network, and opportunities in emerging markets. However, it also noted weaknesses and threats such as foreign currency fluctuations, growing public interest in "healthy" beverages, and competition from healthy beverage providers.

Its SWOT analysis prompted Value Line to pose some tough questions about Coca-Cola's strategy, but also to note that the company "will probably remain a top-tier beverage provider" that offered conservative investors "a reliable source of income and a bit of capital gains exposure."

Five years later, the Value Line SWOT analysis proved effective as Coca-Cola remains the 6th strongest brand in the world (as it was then). Coca-Cola's shares (traded under ticker symbol KO) have increased in value by over 60% during the five years after the analysis was completed.

To get a better picture of a SWOT analysis, consider the example of a fictitious organic smoothie company. To better understand how it competes within the smoothie market and what it can do better, it conducted a SWOT analysis. Through this analysis, it identified that its strengths were good sourcing of ingredients, personalized customer service, and a strong relationship with suppliers. Peering within its operations, it identified a few areas of weakness: little product diversification, high turnover rates, and outdated equipment.

Examining how the external environment affects its business, it identified opportunities in emerging technology, untapped demographics, and a culture shift towards healthy living. It also found threats, such as a winter freeze damaging crops, a global pandemic, and kinks in the supply chain. In conjunction with other planning techniques, the company used the SWOT analysis to leverage its strengths and external opportunities to eliminate threats and strengthen areas where it is weak.

What Is an Example of SWOT Analysis?

Home Depot conducted a SWOT analysis, creating a balanced list of its internal advantages and disadvantages and external factors threatening its market position and growth strategy. High-quality customer service, strong brand recognition, and positive relationships with suppliers were some of its notable strengths; whereas, a constricted supply chain, interdependence on the U.S. market, and a replicable business model were listed as its weaknesses.

Closely related to its weaknesses, Home Depot's threats were the presence of close rivals, available substitutes, and the condition of the U.S. market. It found from this study and other analysis that expanding its supply chain and global footprint would be key to its growth.

What Are the 4 Steps of SWOT Analysis?

The four steps of SWOT analysis comprise the acronym SWOT: strengths, weaknesses, opportunities, and threats. These four aspects can be broken into two analytical steps. First, a company assesses its internal capabilities and determines its strengths and weaknesses. Then, a company looks outward and evaluates external factors that impact its business. These external factors may create opportunities or threaten existing operations.

How Do You Write a Good SWOT Analysis?

Creating a SWOT analysis involves identifying and analyzing the strengths, weaknesses, opportunities, and threats of a company. It is recommended to first create a list of questions to answer for each element. The questions serve as a guide for completing the SWOT analysis and creating a balanced list. The SWOT framework can be constructed in list format, as free text, or, most commonly, as a 4-cell table, with quadrants dedicated to each element. Strengths and weaknesses are listed first, followed by opportunities and threats.

Why Is SWOT Analysis Used?

A SWOT analysis is used to strategically identify areas of improvement or competitive advantages for a company. In addition to analyzing thing that a company does well, SWOT analysis takes a look at more detrimental, negative elements of a business. Using this information, a company can make smarter decisions to preserve what it does well, capitalize on its strengths, mitigate risk regarding weaknesses, and plan for events that may adversely affect the company in the future.

A SWOT analysis is a great way to guide business-strategy meetings. It's powerful to have everyone in the room discuss the company's core strengths and weaknesses, define the opportunities and threats, and brainstorm ideas. Oftentimes, the SWOT analysis you envision before the session changes throughout to reflect factors you were unaware of and would never have captured if not for the group’s input.

A company can use a SWOT for overall business strategy sessions or for a specific segment such as marketing, production, or sales. This way, you can see how the overall strategy developed from the SWOT analysis will filter down to the segments below before committing to it. You can also work in reverse with a segment-specific SWOT analysis that feeds into an overall SWOT analysis.

Although a useful planning tool, SWOT has limitations. It is one of several business planning techniques to consider and should not be used alone. Also, each point listed within the categories is not prioritized the same. SWOT does not account for the differences in weight. Therefore, a deeper analysis is needed, using another planning technique.

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How to Do a SWOT Analysis for Better Strategic Planning

6 min. read

Updated October 27, 2023

Conducting a SWOT analysis of your business is a lot more fun than it sounds. It won’t take much time, and doing it forces you to think about your business in a whole new way.

The point of a SWOT analysis is to help you develop a strong business strategy by making sure you’ve considered all of your business’s strengths and weaknesses, as well as the opportunities and threats it faces in the marketplace.

• What is a SWOT analysis?

S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an organized list of your business’s greatest strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal to the company (think: reputation, patents, location). You can change them over time but not without some work. Opportunities and threats are external (think: suppliers, competitors, prices)—they are out there in the market, happening whether you like it or not. You can’t change them.

Existing businesses can use a SWOT analysis, at any time, to assess a changing environment and respond proactively. In fact, I recommend conducting a strategy review meeting at least once a year that begins with a SWOT analysis.

New businesses should use a SWOT analysis as a part of their planning process. There is no “one size fits all” plan for your business, and thinking about your new business in terms of its unique “SWOTs” will put you on the right track right away, and save you from a lot of headaches later on.

Looking to get started right away? Download our free SWOT Analysis template.

In this article, I will cover the following:

• How to conduct a SWOT analysis
• Questions to ask during a SWOT analysis
• Example of a SWOT analysis
• TOWS analysis: Developing strategies for your SWOT analysis

To get the most complete, objective results, a SWOT analysis is best conducted by a group of people with different perspectives and stakes in your company. Management, sales, customer service, and even customers can all contribute valid insight. Moreover, the SWOT analysis process is an opportunity to bring your team together and encourage their participation in and adherence to your company’s resulting strategy.

A SWOT analysis is typically conducted using a four-square SWOT analysis template, but you could also just make lists for each category. Use the method that makes it easiest for you to organize and understand the results.

I recommend holding a brainstorming session to identify the factors in each of the four categories. Alternatively, you could ask team members to individually complete our free SWOT analysis template, and then meet to discuss and compile the results. As you work through each category, don’t be too concerned about elaborating at first; bullet points may be the best way to begin. Just capture the factors you believe are relevant in each of the four areas.

Once you are finished brainstorming, create a final, prioritized version of your SWOT analysis, listing the factors in each category in order of highest priority at the top to lowest priority at the bottom.

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I’ve compiled some questions below to help you develop each section of your SWOT analysis. There are certainly other questions you could ask; these are just meant to get you started.

Strengths (internal, positive factors)

Strengths describe the positive attributes, tangible and intangible, internal to your organization. They are within your control.

• What do you do well?
• Positive attributes of people , such as knowledge, background, education, credentials, network, reputation, or skills.
• Tangible assets of the company , such as capital, credit, existing customers or distribution channels, patents, or technology.
• What advantages do you have over your competition?
• Do you have strong research and development capabilities? Manufacturing facilities?
• What other positive aspects, internal to your business, add value or offer you a competitive advantage?

Weaknesses (internal, negative factors)

Weaknesses are aspects of your business that detract from the value you offer or place you at a competitive disadvantage. You need to enhance these areas in order to compete with your best competitor.

• What factors that are within your control detract from your ability to obtain or maintain a competitive edge?
• What areas need improvement to accomplish your objectives or compete with your strongest competitor?
• What does your business lack (for example, expertise or access to skills or technology)?
• Does your business have limited resources?
• Is your business in a poor location?

Opportunities (external, positive factors)

Opportunities are external attractive factors that represent reasons your business is likely to prosper.

• What opportunities exist in your market or the environment that you can benefit from?
• Is the perception of your business positive?
• Has there been recent market growth or have there been other changes in the market the create an opportunity?
• Is the opportunity ongoing, or is there just a window for it? In other words, how critical is your timing?

Threats (external, negative factors)

Threats include external factors beyond your control that could place your strategy, or the business itself, at risk. You have no control over these, but you may benefit by having contingency plans to address them if they should occur.

• Who are your existing or potential competitors?
• What factors beyond your control could place your business at risk?
• Are there challenges created by an unfavorable trend or development that may lead to deteriorating revenues or profits?
• What situations might threaten your marketing efforts?
• Has there been a significant change in supplier prices or the availability of raw materials?
• What about shifts in consumer behavior, the economy, or government regulations that could reduce your sales?
• Has a new product or technology been introduced that makes your products, equipment, or services obsolete?
• Examples of a SWOT analysis

For illustration, here’s a brief SWOT example from a hypothetical, medium-sized computer store in the United States:

See our SWOT analysis examples article for in-depth examples of SWOT analyses for several different industries and business types or download our free SWOT analysis template .

• TOWS analysis: Developing strategies from your SWOT analysis

Once you have identified and prioritized your SWOT results, you can use them to develop short-term and long-term strategies for your business. After all, the true value of this exercise is in using the results to maximize the positive influences on your business and minimize the negative ones.

But how do you turn your SWOT results into strategies? One way to do this is to consider how your company’s strengths, weaknesses, opportunities, and threats overlap with each other. This is sometimes called a TOWS analysis.

For example, look at the strengths you identified, and then come up with ways to use those strengths to maximize the opportunities (these are strength-opportunity strategies). Then, look at how those same strengths can be used to minimize the threats you identified (these are strength-threats strategies).

Continuing this process, use the opportunities you identified to develop strategies that will minimize the weaknesses (weakness-opportunity strategies) or avoid the threats (weakness-threats strategies).

The following table might help you organize the strategies in each area:

Once you’ve developed strategies and included them in your strategic plan, be sure to schedule regular review meetings. Use these meetings to talk about why the results of your strategies are different from what you’d planned (because they always will be) and decide what your team will do going forward.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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A SWOT analysis can help a small business owner or business assess a company’s position to determine the most optimal strategy going forward. This business practice can help you identify what you’re doing well, what you want to do better, and what kinds of obstacles you might encounter along the way.

This guide will walk you through everything you need to know about a SWOT analysis: what it is, how it works, and how to do it. We’ll also include an example and a template to help guide you as you perform your own SWOT analysis.

What Is a SWOT Analysis?

A SWOT analysis is a strategic planning technique that outlines an organization’s strengths, weaknesses, opportunities, and threats. Assessing business competition in this way can help an organization plan strategically and execute more effectively.

The 4 Parts of a SWOT Analysis

Your business’s strengths SWOT section should include anything that your business does differently or better than competitors. Think about your unique value proposition, trends you’ve noticed in positive customer feedback, operational strengths, and company culture. This section is the perfect place to name and celebrate anything you’re already doing well.

Don’t be afraid to toot your own horn (while also remaining objective). Clearly identifying your business’s strengths not only helps you keep your spirits balanced as you address your weaknesses, it will also give you a sense of where to concentrate your resources. It’s easier to build a successful business when you’re working towards something, rather than acting in opposition.

Questions to help you determine your strengths:

• What is your business’s unique value proposition?
• What common compliments do you receive from your customers?
• What does your business do particularly well?
• How do you operate differently from your competitors?
• What gives you an edge on the competition ? (This can include something product-related like “better access to raw materials” or “lower cost of goods,” or it can be an internal strength like “strong company culture” or “employee motivation.”)
• What might your competitors name as your strengths?

Your weaknesses are the areas in which the business has room for improvement. You should include structural weaknesses in this section—those that relate to your systems, procedures, resources, and personnel. This is a great place to look at common feedback from employees (either from exit interviews, anonymous surveys, or other sources) and recurring customer complaints.

Questions to help you determine your weaknesses:

• What areas of your business could stand to improve?
• What are common hiccups in your customer experience ?
• How do you use your resources? Is there room for improvement?
• What improvements are needed in your employee experience?
• What weaknesses might your customers see that you tend to overlook?
• What weaknesses might your competitors think you have?

Opportunities

Your opportunities are the positive, external factors that your business might benefit from… but cannot directly control. That might include market opportunities, consumer purchasing trends, legal or regulatory changes, population changes, the cost of raw materials, and more. For example, businesses that provide accessibility for aging seniors might recognize the forthcoming “silver tsunami” of Baby Boomers entering the target demographic. This would be a clear opportunity to expand their customer base.

Questions to help you determine your opportunities:

• What trends might affect your industry?
• How might the right talent create new opportunities?
• your customers ask for anything you don’t offer (but could)?
• How might population changes affect your business opportunities? (think: generational shifts)
• Is there a need in the industry that you’re not creating, but could?
• Do your competitors have any weaknesses that could be opportunities for you?
• Is there a way to repackage current products to demand a higher price?
• Are there any new, or potential, regulatory or tax changes that might provide a new opportunity?

Your threats are the external factors that have the potential to negatively affect your business. A threat can be specific and competitor-based or more structural. buy clomid online buy clomid online no prescription Examples of structural threats could be supply chain challenges, shifts in market requirements, talent shortages, or changes to social media algorithms (especially if your business heavily relies on social media marketing). You might also face a threat (or threats) from your competitors. This can include the way they operate, how they’re marketing, or the products they offer.

Identifying every external threat your business faces is essential for your business to identify how it must adapt in order to meet and overcome these challenges.

Questions to help you determine threats:

• What happens if a supplier or manufacturer runs out of materials you use?
• What if a natural disaster (like a pandemic) strikes? buy amitriptyline online buy amitriptyline online no prescription
• Is your market shrinking?
• What are your competitors offering? Are they expanding or offering different products?
• How are your competitors marketing?
• What technological threats are you vulnerable to (website security, social media algorithm changes)?
• Are there any businesses that aren’t competitors now but could become competitors in the future?

The Benefits of a SWOT Analysis

SWOT analyses offer a variety of benefits for businesses and personal brands. Here are some of the most common benefits of a SWOT analysis:

• You can use it to determine a strategic plan.
• You can use it to drive an innovative, informed marketing plan.
• It can help you identify external opportunities.
• It can help you identify external threats.
• It can reveal environmental factors that might affect your business, either positively or negatively.
• You can develop a plan for how to tackle internal weaknesses.

How to Do a SWOT Analysis

You can approach SWOT analyses in multiple ways. You can conduct a personal SWOT analysis for yourself as an individual, you can perform a marketing SWOT analysis to determine a competitive advantage in your marketing , or you can use a SWOT analysis as a part of broader strategic planning.

Whatever your end goal for a SWOT analysis, follow these steps.

1. Create a SWOT Matrix

Use a SWOT template or create your own. You can create your SWOT framework on the computer or on a whiteboard—if you choose to do the latter, be sure that someone is in charge of recording the responses so that you don’t lose key insights (you can also take a picture at the end of the SWOT session).

2. Assemble Key Stakeholders

A SWOT analysis is most effective when it collects a variety of perspectives. Gathering key stakeholders with various perspectives will help you see more than you would have seen alone. Marketing leaders might be able to give you a more specific sense of the opportunities and threats related to your content marketing efforts. Your people team is closest to all personnel changes and feedback, so they’ll have the clearest sense of an organization’s strengths and what is driving employee retention (or challenging it). Sales leaders can help translate opportunities into a cohesive business strategy.

It’s simple: when it comes to a SWOT analysis, more heads are better than one.

3. Brainstorm Around Your Companies’ Strengths, Weaknesses, Opportunities, and Threats

Go through each field of the SWOT diagram, spending some time with each one. Ask the group the guiding questions to ensure you’re developing a comprehensive picture of the internal and external environment. There are no bad ideas in brainstorming. You’re just trying to get thoughts flowing. Something that feels like a “bad idea” might lead to discovering a potential threat you’d never thought of before or nuanced analysis of how you stack up to your nearest competitor. The key here is to keep the brainstorm going.

4. Record Relevant Thoughts in Their Respective Sections

As you brainstorm, record points and ideas when they are relevant. At the end of the session, your SWOT analysis should leave you with a clear sense of the organization’s strengths and company’s weaknesses that you can use to guide your strategy formulation.

5. Edit Your List

Revisit the SWOT diagram at a later time and edit it, culling out anything you don’t really need. You can also polish up some of the key insights gleaned in the brainstorming session. This is especially important if you plan to use your SWOT analysis as a more formal document that might be disseminated broadly.

6. Create a More Formal Version (Optional)

The final step, if you choose to do it, is to take your SWOT takeaways and put them together in a polished document that you can share.

A SWOT Analysis Example

It can be easier to understand how to approach a SWOT analysis if you’ve seen a SWOT analysis example. For the sake of this example, we will imagine a hypothetical company and what its SWOT analysis might look like.

The Business

An Instagram-friendly fitness business offering virtual workouts.

• The business is not limited to a specific geographic area.
• The company offers great benefits so employees tend to stay.
• Workouts look really good, so they market well on social media (particularly Instagram).
• The app experience can be glitchy.
• High customer churn rate.
• Competitors let you filter classes by the instructor. Ours doesn’t offer that.
• There is growing interest in our type of workout.
• As a result of the pandemic, consumers are more interested in at-home workouts.
• We could start offering retail products and branded workout equipment like our competitors do.
• Our app is vulnerable to hacking.
• If Instagram changes its algorithm, we may become wholly dependent on paid ads instead of organic posts.

A SWOT Analysis Template

Use this template to create your own SWOT analysis.

Strengths Section: What Your Company Does Well

Weaknesses section: what your company could improve, opportunities section: external factors you could use to your advantage, threats section: external factors that could harm your business, owning the hard truths of a swot analysis.

A SWOT analysis can bring up a lot of hard truths. It’s difficult to confront your company’s weaknesses and sometimes looking at threats can make them feel like the existential kind. Overcome these obstacles and give yourself the fortitude to confront business challenges head on with the Mental Toughness mini-course. The best part? It’s free.

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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197+ Weaknesses Examples for SWOT Analysis (List)

Today, we're diving deep into the other side of the coin: weaknesses. Yep, we all have 'em, and guess what? That's totally okay. Understanding our weaknesses is just as crucial as knowing our strengths.

Weaknesses are the areas of ourselves or our business that can hinder our progress. Here are common weaknesses listed in organizational SWOT analysis:

• Outdated Technology
• High Turnover
• High Overhead
• Poor Marketing Strategy
• Lack of Diversification
• Slow Decision Making
• No Research or Development

You might be thinking, "Why do I want to focus on what I'm bad at?" Well, think of it this way: knowing your weaknesses is the first step to improving them. Whether you're on a personal development journey or trying to steer a business toward success, being aware of your weaknesses can help you avoid pitfalls and make smarter choices.

In this article, we've got a huge list of weaknesses lined up for you. But don't worry; it's not about making you feel bad. It's about giving you the tools you need to be even better. So, read on, and let's get to know those weaknesses so we can turn them into future strengths!

When it comes to a SWOT analysis , there are 3 other areas to focus on, and you can read our articles for examples of them:

• Opportunities

Why Weaknesses Matter in SWOT Analysis

No one likes to talk about weaknesses, but guess what? They're super important! Knowing what you're not great at can help you dodge problems and make better choices.

In SWOT analysis, weaknesses are like warning signs on a road. They show you where you need to be careful or need improvement. For businesses, understanding weaknesses can help you avoid costly mistakes and make smarter moves.

Alright, so we've got another hefty list, but this time it's all about weaknesses. You might be wondering, "How do I use this?" First up, go through the list and see which weaknesses ring a bell for you or your business.

If you are struggling to identify your weaknesses, you can take a test like The Big 5 Factor Model of Personality to help.

Once you've done that, brainstorm ways to improve or work around them. Like, if you notice time management is a weakness, maybe you could take a class or use an app to get better at it.

Categorization of Weaknesses

Just like with strengths, we've organized the weaknesses into two main sections: 'Personal Weaknesses' and 'Business Weaknesses'. This makes it easy-peasy to find what you're looking for.

So if you're more interested in self-improvement, the personal weaknesses section is for you. But if you're all about making your business or project better, then check out the business and project weaknesses.

Quick note here: this list is really detailed, but it's not the ultimate guide to all possible weaknesses. Weaknesses can vary depending on the situation, your industry, or even the team you're working with. So, take this list as a helpful tool, but always keep an eye out for other weaknesses that might be specific to you or your circumstance.

Certainly! Below are some examples of personal weaknesses, each explained in a short paragraph suitable for an 8th-grade reading level while still being relevant for adults.

Personal Weaknesses Example List

Procrastination : You know that thing where you put off stuff until the last minute? Yep, that's procrastination. It's like a sneaky gremlin that eats up your time and makes you rush through tasks. If this sounds like you, it's a weakness worth working on.

Impatience : Ever get annoyed when things don't happen right away? That's impatience. It can make you make quick decisions without thinking them through, and that's not always the best idea.

Lack of Focus : If you find it hard to stick with a task or keep your attention on one thing, you might struggle with a lack of focus. This can make it tricky to finish what you start.

Low Self-Esteem : Feeling down about yourself a lot? That's low self-esteem, and it can hold you back from doing things you want to do because you don't think you're good enough.

Poor Time Management : Ever feel like there's never enough time in the day? That might be because you're not so great at managing your time. Learning to plan better can really help.

Fear of Failure : Being scared to fail can stop you from trying new things. It's like putting up your own roadblock on the path to success.

Disorganization : If your stuff or plans are all over the place, you're probably disorganized. This can make life way more stressful than it needs to be.

Perfectionism : Wanting things to be perfect isn't always a good thing. Sometimes, it can make you spend way too much time on a task, or even avoid starting it altogether.

Indecisiveness : If making choices feels like a mountain you can't climb, you might be indecisive. It can slow you down and make simple things way more complicated.

Negativity : Always seeing the glass as half-empty? That's negativity, and it can make you and the people around you feel down.

Overthinking : If your brain is like a hamster on a wheel that won’t stop spinning, you might be an overthinker. Overthinking can make it hard to take action because you're too busy analyzing every angle.

Stubbornness : Being stubborn means you don’t like to change your mind or adapt. While it's good to stick to your beliefs, being too stubborn can close you off to new ideas or solutions.

Too Emotional : Feelings are important, but if you find that your emotions are controlling you rather than the other way around, that can be a weakness. Being too emotional might affect your decision-making skills.

Difficulty in Saying No : Do you find it hard to turn down requests from friends, family, or coworkers? This might make you end up with more than you can handle, causing stress.

Impulsivity : Acting before thinking things through can lead to problems. If you're impulsive, you might make decisions you later regret.

Avoiding Conflict : If you always dodge arguments or hard talks, that's a weakness too. Avoiding conflict might make issues fester instead of solving them.

Sensitive to Criticism : If hearing what you could do better makes you defensive or upset, you might be overly sensitive to criticism. This can make it hard to grow and improve.

Unreliable : If people can’t count on you to be where you said you’d be or do what you said you'd do, that's unreliability. It can make others lose trust in you.

Inability to Work in a Team : If you struggle to cooperate with others or always want things your way, it’s hard to get stuff done in a group setting.

Cautious to a Fault : Being cautious means you're careful, which is often good. But if you're too cautious, you might miss out on opportunities because you're scared to take risks.

Lack of Motivation : If getting started on tasks feels like pulling teeth, you might lack motivation. This can really slow you down and make reaching your goals a lot harder.

Over-Competitive : Being competitive can be a strength, but taken too far, it becomes a weakness. If you have to win at all costs, you might alienate people around you.

Poor Stress Management : If you find yourself overwhelmed or freaking out often, your stress management skills could use some work. Being stressed all the time is bad for your health and decision-making.

Pessimism : Always expecting the worst can hold you back. If you're a pessimist, you might not even try things because you already expect to fail.

Jealousy : Feeling like others have things you don't can eat away at your happiness and self-esteem. Jealousy can also strain relationships.

Poor Communication Skills : If people often misunderstand you, or you have trouble getting your point across, you might have poor communication skills. This can cause problems both in personal relationships and at work.

Easily Distracted : If every little thing pulls you away from what you're doing, you're easily distracted. This can make it hard to finish tasks in a timely manner.

Tendency to Blame Others : If something goes wrong, do you look for someone else to pin it on? Blaming others doesn't solve problems and can damage trust.

Too Detail-Oriented : Paying attention to detail is generally good, but if you get caught up in the tiny things, you might lose sight of the bigger picture.

Unwilling to Delegate : If you feel like you need to do everything yourself, you're not using your team effectively. Plus, it adds extra stress to your life.

Too Agreeable : Being nice is one thing, but if you're too agreeable, you may not stand up for yourself or your ideas, leading to a lack of diversity in decision-making.

Poor Problem-Solving Skills : If you get stuck when challenges come up, you may have poor problem-solving skills. This can make obstacles feel bigger than they are.

Lack of Empathy : If you find it hard to understand how others are feeling, you might lack empathy. This can make it difficult to connect with people on a deeper level.

Rigidity : If you always want to do things a certain way and aren't open to new methods or ideas, you're rigid. This can limit your growth and potential for innovation.

Gullibility : If you tend to believe what anyone tells you without questioning it, you're gullible. This can lead to you being taken advantage of.

Lack of Accountability : If you don't take responsibility for your actions, especially when you've made a mistake, you lack accountability. This can erode trust and respect from others.

Difficulty Adapting to Change : Change is constant, but if you struggle with it, you may find life more stressful than it needs to be.

Need for External Validation : If you're always looking for approval from others, you might have a hard time feeling confident on your own.

Prone to Burnout : If you push yourself too hard for too long, you're prone to burnout, which can negatively affect your mental and physical health.

Non-Constructive Criticism : If you're quick to point out faults but don't offer solutions, your criticism may not be very helpful.

Unpunctuality : If you're always running late, it's not just your time you're affecting. Being unpunctual can cause stress and inconvenience for others too.

Quick to Judge : Jumping to conclusions without knowing the full story can be a big weakness. It can lead to misunderstandings and strain relationships.

Highly Self-Critical : It's one thing to want to improve, but if you're always harsh on yourself, it can be demoralizing. Constant self-criticism can hinder your self-esteem and potential for growth.

Resistance to Feedback : If you don’t like hearing how you could do better, you’re resisting valuable feedback. This can stunt your personal and professional development.

Over-Reliance on Technology : If your phone or computer feels like an extra limb, you might be too reliant on technology. This can make real-world interactions more challenging.

Short Temper : If little things set you off easily, that's a sign of a short temper. Losing your cool frequently can make people wary around you.

Difficulty Prioritizing : If everything feels urgent to you, you might have difficulty prioritizing. This can make tasks overwhelming and lead to poor time management.

Intolerance : Not being open to other perspectives, cultures, or ideas can make you intolerant, which limits your personal growth and can strain relationships.

Overconfident : Confidence is great, but too much of it can blind you to your flaws and limitations. Overconfidence can lead to poor decisions and even failure.

Poor Listening Skills : If you find yourself waiting for your turn to talk rather than truly listening to what someone is saying, your listening skills could use some improvement.

Excessive Humility : Being humble is generally good, but too much humility can keep you from advocating for yourself and seizing opportunities.

Low Tolerance for Ambiguity : If unclear or unpredictable situations make you really uncomfortable, you might struggle in complex projects or discussions that require some level of uncertainty.

Prone to Gossip : Sharing gossip can harm relationships and trust, both in personal circles and in the workplace.

Unrealistic Expectations : Setting your goals too high can lead to disappointment and discourage you from trying again.

Rigid Thinking : If you see things in black and white and struggle to see shades of gray, your rigid thinking can make complex decisions more challenging.

Tendency to Overshare : Sharing too much information, especially in inappropriate settings, can make people uncomfortable and affect their perception of you.

Dependency on Others : If you struggle to make decisions or take actions without reassurance from others, this dependency can limit your autonomy.

Prone to Daydreaming : If you're often lost in your own world, you might miss out on important information or neglect tasks that need attention.

Inconsistency : If your behavior or performance varies widely from one day to the next, it can be hard for people to know what to expect from you.

Materialistic : Placing too much importance on possessions or money can lead to neglect of more meaningful aspects of life, like relationships and personal growth.

Avoiding Confrontation : If you go out of your way to avoid conflict, you might let problems fester instead of addressing them head-on. This can lead to bigger issues down the line.

Difficulty Saying No : If you find it hard to turn down requests, you might end up overwhelmed with commitments that you can't really handle well.

Overthinking : If you find yourself going over and over situations or choices in your mind, you're an overthinker. This can lead to decision-making paralysis.

Nostalgia : While it's natural to reminisce, being too focused on the past can make it difficult to engage with the present or plan for the future.

Perfectionism : Wanting things to be perfect can make it hard to finish projects or be satisfied with good enough.

Impulsivity : Acting on your first impulse can lead to poorly thought-out decisions and unnecessary mistakes.

Disorganized : A messy workspace or schedule can make it hard to focus and accomplish tasks efficiently.

Fear of Public Speaking : Being afraid to speak in front of people can limit your opportunities in both personal and professional settings.

Over-Apologizing : Saying sorry when it's not needed can undermine your credibility and authority.

Sensitive to Criticism : If you can't handle critique without becoming defensive or upset, it can impede your personal and professional development.

Stubbornness : If you dig in your heels and refuse to change your mind, even in the face of new information, you're being stubborn, which can limit your growth.

Worrying About What Others Think : If you're overly concerned with other people's opinions, you may not make the best decisions for yourself.

Tendency to Procrastinate : Putting off tasks until the last minute can lead to unnecessary stress and lower-quality work.

Need for Instant Gratification : If you're not willing to wait for long-term rewards, you may make poor choices that offer immediate pleasure but are not beneficial in the long run.

Unrealistic Self-Image : Having an unrealistic view of your abilities, either too high or too low, can result in poor decisions and missed opportunities.

Fear of Failure : If you're so scared of failing that you don't try, you'll miss out on opportunities to grow and succeed.

Difficulty Celebrating Success : If you don't take the time to celebrate your wins, big or small, you can burn out more quickly.

Negativity : Always focusing on the negative aspects of situations can drain your energy and those around you.

Intolerant of Others' Mistakes : If you can't handle people making errors or don't know how to constructively help them improve, you might create a toxic environment.

Poor Money Management : Difficulty budgeting or saving can lead to stress and financial hardship.

Ignoring Self-Care : If you're always putting other people or tasks first and ignoring your own well-being, you can quickly burn out and become less effective at everything you do.

Difficulty in Delegating : If you find it hard to trust others with tasks, you'll end up overburdened and your team or family won't grow in their own abilities.

Low Assertiveness : If you struggle to express your needs or stand up for yourself, you could be taken advantage of or miss out on opportunities.

Lack of Patience : If you get easily frustrated when things don't happen as quickly as you'd like, your impatience can make stressful situations even worse.

Difficulty Taking Risks : If the idea of taking a risk makes you freeze up, you might miss out on valuable opportunities for growth or advancement.

Not Adaptable : If you struggle to adjust to new situations or changes in plans, it can make life more stressful and limit your opportunities.

Excessive Sarcasm : While a sarcastic sense of humor can be funny, using it excessively can be off-putting and may hurt relationships.

Lack of Emotional Intelligence : If you struggle to recognize and control your own emotions or understand others', you could have low emotional intelligence, which can be a real hindrance in social situations.

Over-Analytical : If you dissect every situation to the nth degree, you could get bogged down in details and make decision-making a laborious process.

Frequent Complaining : If you're always seeing the glass as half-empty, your complaining can bring down the mood and morale of those around you.

Inability to Accept Compliments : If you can't graciously accept a compliment, you may give the impression that you lack self-confidence or are ungrateful.

Lack of Empathy : If you find it hard to understand or share the feelings of others, this lack of empathy can make interpersonal relationships challenging.

Not Detail-Oriented : Missing out on the small details can lead to big mistakes in both personal and professional settings.

Lack of Focus : If you can't keep your attention on one task for long periods, it can significantly hinder your productivity and the quality of your work.

Difficulty in Multi-Tasking : If juggling several tasks at once leaves you frazzled or leads to more mistakes, your difficulty in multi-tasking could be a weakness.

Always Wanting to Please Others : If you're constantly seeking approval from others, you might not make the best choices for yourself.

Fear of Making Decisions : If making a choice paralyzes you because you're afraid of making a mistake, this can be a significant obstacle in many aspects of life.

Business Weaknesses Examples

Limited Capital : If your business doesn't have enough money to invest in growth or improvements, you're at a disadvantage right out of the gate.

Outdated Technology : Using old technology can slow down operations and make you less competitive in the market.

Low Employee Morale : Unhappy workers can lead to low productivity and high turnover, which can be expensive and disruptive.

Ineffective Marketing : If people don't know about your business or why they should choose you, you're missing out on potential sales.

Limited Customer Base : Relying on a small group of customers for the majority of your revenue is risky; if one leaves, it can seriously affect your income.

Poor Customer Service : Bad service can drive customers away faster than almost anything else and can lead to negative reviews online.

High Employee Turnover : Constantly hiring and training new employees is expensive and can lead to inconsistent service or product quality.

Inadequate Supply Chain : If you can't get the supplies or products you need in a timely and cost-effective manner, it can seriously hamper your ability to do business.

Lack of Strategic Direction : Without a clear plan and goals, your business can drift and miss out on opportunities for growth.

Over-Reliance on Founders : If the business can't operate without the founder, it's difficult to scale or sell the business.

Outdated Business Model : If your way of doing business is out of date, you'll struggle to compete in today's market.

Low Market Demand : If there's not enough demand for your product or service, growth will be slow, and the business may not be sustainable.

Poor Quality Products or Services : Inferior products or services will not only drive customers away but can also result in returns and bad reviews.

Slow Decision-Making : Businesses that can't make decisions quickly may miss out on opportunities and get left behind by competitors.

Bad Location : An inconvenient or unpleasant location can turn customers away.

Inefficient Processes : Wasting time and resources can make your business less profitable and more stressful to run.

Lack of Innovation : Businesses that don't innovate risk becoming irrelevant as markets and technologies evolve.

Weak Management Team : Poor leadership can lead to bad decision-making, low morale, and even business failure.

Compliance Issues : Failing to follow laws and regulations can result in fines, legal fees, and reputational damage.

Reputational Problems : Negative perceptions or publicity can severely affect customer trust and sales.

Narrow Product Range : Having a limited range of products or services can make your business vulnerable to market changes.

Debt Burden : Carrying a lot of debt can strain your resources and limit your ability to invest in growth opportunities.

Limited Talent Pool : If you're not attracting skilled employees, your business will struggle to meet its goals and stay competitive.

Inconsistent Branding : Inconsistent messages can confuse customers and weaken your brand's impact.

No Online Presence : In today's digital age, lacking an online presence can make your business virtually invisible to a broad audience.

Lack of Partnerships : Operating without strategic partnerships can limit your reach and growth potential.

Unresponsive to Market Trends : Failing to adapt to new market trends can leave you trailing behind competitors.

Poor Data Management : Ineffective data management can lead to wrong decisions and missed opportunities.

Low Profit Margins : If your costs are too high compared to your revenue, you'll struggle to maintain a sustainable business.

Difficulty in Scaling : Struggling to expand your operations can hamper growth and give competitors an edge.

Environmental Non-Compliance : Failing to meet environmental guidelines can result in penalties and damage your brand reputation.

Weak Internal Communication : Poor communication within your team can lead to misunderstandings, inefficiencies, and errors.

Dependent on Seasonal Sales : Relying too much on sales during specific seasons can leave you vulnerable during off-peak months.

Lack of Customer Loyalty Programs : Without incentives for customers to return, you risk losing them to competitors.

No Contingency Plans : Lack of planning for emergencies can result in chaos and loss of business during unforeseen circumstances.

Limited Research and Development : Without investment in R&D, your products may become outdated, giving competitors an opportunity to get ahead.

Lack of Diversification : Putting all your eggs in one basket, so to speak, exposes your business to risks if that one area faces challenges.

Short-term Focus : Prioritizing short-term gains over long-term sustainability can damage your business in the long run.

Lack of Training Programs : An untrained workforce can be less efficient and produce lower quality work, affecting your business's competitiveness.

Non-Competitive Pricing : If your prices are significantly higher than competitors without offering additional value, you could lose customers.

Aging Infrastructure : Old facilities or outdated office equipment can decrease productivity and increase maintenance costs.

Limited Geographical Reach : If your business is confined to a small area, you're missing out on wider market opportunities.

Lack of Social Responsibility : A company that doesn't engage in any social responsibility initiatives can be viewed as out of touch or uncaring.

Volatile Cash Flow : If your income fluctuates wildly, it makes planning and investing for the future difficult.

Non-Transparent Practices : Lack of transparency can cause suspicion among both employees and customers, affecting loyalty and trust.

Sub-Par Vendor Relationships : Poor relations with suppliers can affect the terms and reliability of your supply chain.

No Employee Benefits : Lack of benefits can make it difficult to attract and retain quality staff.

Lack of Standard Operating Procedures (SOPs) : Without standardized processes, the efficiency and quality of work can suffer.

Limited Intellectual Property : No patents, copyrights, or unique features make a business more susceptible to competition.

Non-Inclusive Work Environment : Lack of diversity and inclusion can lead to a narrow perspective and could even expose your business to legal issues.

No Business Continuity Plan : A lack of a solid plan in case of major disruptions can be catastrophic for maintaining operations.

Poor SEO Ranking : If your business is not easily found on search engines, you lose a massive potential audience.

Late Adoption of New Technologies : Being late in adopting new tech trends can make your business fall behind competitors.

Manual Record-Keeping : Relying on manual methods for important records is inefficient and prone to errors.

Lack of Employee Autonomy : Over-controlling management styles can stifle creativity and make employees feel disempowered.

Poor Quality Control : Lack of checks on product or service quality can lead to dissatisfied customers and potential legal issues.

Non-Strategic Business Alliances : Entering partnerships or alliances without strategic goals can dilute the brand and confuse customers.

Slow Inventory Turnover : If stock sits for too long, it ties up capital and risks becoming obsolete.

Lack of Expert Consultation : Not seeking expert advice for critical areas of business can lead to poor decision-making.

Non-Scalable Business Model : A business model that doesn't adapt to various scales can limit growth opportunities.

Lack of Analytics : Not using data analytics can mean missing out on key insights that could improve business operations and customer experience.

Limited Online Payment Options : Restricting the ways that customers can pay online can lead to abandoned shopping carts and lost sales.

Poor Employee Onboarding Process : A weak onboarding process can result in new hires feeling lost and unproductive, increasing the likelihood they'll leave.

Lack of Multilingual Support : Failing to offer services in multiple languages can limit your market reach.

Lack of Collaboration Tools : Without the right tools, teamwork suffers, and tasks take longer to complete.

Lack of Energy Efficiency : An energy-inefficient business not only has higher bills but can also be seen as less environmentally responsible.

High Overhead Costs : Excessive fixed costs can make profitability harder to achieve.

Lack of Cybersecurity Measures : Inadequate security can lead to data breaches, resulting in financial loss and damage to your reputation.

Undifferentiated Products or Services : When what you're offering is similar to competitors, it's hard to stand out in the market.

Dependence on Freelancers : Over-reliance on external freelancers may lead to issues with quality and reliability.

Non-User-Friendly Website : A complicated or outdated website can frustrate users and lead them to leave without making a purchase.

Vague Positioning : If consumers aren't clear about what sets your business apart, they may choose competitors instead.

Lack of Networking : Poor industry connections can limit business opportunities and partnerships.

No Backup Suppliers : Dependence on a single supplier can disrupt your business if they fail to deliver.

Limited Social Media Engagement : A weak social media presence can result in lost opportunities to engage with your audience.

Lack of Up-to-Date Training : Outdated skills and knowledge can hinder the competitiveness of your business.

Unmanageable Growth : Growing too quickly can strain resources and lead to operational problems.

High Employee Absenteeism : Excessive absenteeism can lower productivity and morale, leading to higher turnover.

Limited Access to Credit : Difficulty in securing loans can hinder business growth and sustainability.

Weak Crisis Management : A poor response to crises can result in loss of customer trust and potential revenue.

Rigid Organizational Structure : A too-strict hierarchy can slow down decision-making and stifle creativity.

Limited After-Sales Support : Poor customer service after a purchase can result in low customer retention.

Weak Digital Marketing Strategy : Ineffective online marketing can mean lost visibility and sales opportunities.

No Employee Recognition Programs : Lack of recognition can demotivate employees, affecting productivity and morale.

Lack of Adaptability : An inability to adapt to changing market conditions can leave your business vulnerable.

Overdependence on Seasonal Workers : Reliance on temporary employees can lead to skills and knowledge gaps.

Undeveloped Leadership : Weak leadership can result in poor organizational culture and performance.

Inefficient Resource Allocation : Poorly managed resources can lead to waste and low profitability.

Low Accessibility : Physical or digital barriers that make your business hard to access can alienate potential customers.

Inconsistent Quality : Variability in your product or service quality can confuse and disappoint customers.

No Industry Certifications : Lack of credentials can make it difficult to win trust and secure contracts.

Weak Community Relations : Poor engagement with the local community can result in a lack of support and patronage.

Overreliance on Traditional Advertising : Ignoring newer forms of marketing can mean missing out on key demographics.

Inadequate Inventory Management : Poor stock control can lead to supply chain issues, affecting sales and customer satisfaction.

Fragmented IT Systems : Disconnected tech systems can lead to inefficiencies and increased likelihood of errors.

Limited Capital for Innovations : Lack of funds for research and development can hinder your ability to innovate.

Ineffective Talent Retention Strategy : Losing skilled employees can cost your company in recruitment, training, and lost productivity.

Poorly Defined Employee Roles : Vague job descriptions can result in overlaps or gaps in responsibilities, leading to inefficiencies.

Absence of Mentoring Programs : Without proper guidance, employees may not develop their skills to their full potential.

Limited Marketing Budget : Inadequate funds for marketing can result in lower visibility and slower growth.

Poor Data Backup Systems : If your company doesn't have secure data backup, you risk losing important information in case of a system failure.

Inadequate Employee Evaluation Systems : Without a solid system for performance reviews, you might miss opportunities to improve staff skills and business processes.

Non-Competitive Pricing : If your pricing is not competitive, you could lose market share to rivals offering similar products or services at a lower cost.

Limited Customer Payment Plans : Not offering flexible payment options can make it difficult for some customers to afford your product or service.

Outdated Sales Techniques : If your sales methods are behind the times, you could be missing out on newer, more effective strategies.

Lack of Self-Service Options : Modern customers often seek the convenience of self-service options; lacking these could deter them from choosing your business.

Ineffective Crisis Communication : A lack of clear communication during times of crisis can damage your brand's reputation.

No Eco-Friendly Initiatives : Failure to adopt sustainable practices could turn away environmentally conscious customers and partners.

Vague Company Vision and Mission : Without a clear vision and mission, employees may lack direction and the company might struggle to make unified decisions.

Related posts:

• 109+ SWOT Analysis Examples (Definition + Quiz)
• 203+ SWOT Threats Examples (Definition + Use-cases)
• 183+ Opportunities Examples for SWOT Analysis (Huge List)
• 201+ Strengths Examples For SWOT Analysis (Huge List)
• Dream Interpreter & Dictionary (270+ Meanings)

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Frequently Asked Questions

Swot analysis: how to strengthen your business plan.

Introduction

Every business, big or small needs a solid plan to succeed. A well-constructed business plan takes into account the strengths and weaknesses of a company and the opportunities and threats present in the marketplace. One of the most useful tools for assessing these factors is the SWOT analysis as it provides a comprehensive overview of a company's current situation and potential for growth. In this article, we will discuss what a SWOT analysis is, why it is important for businesses, who should conduct it, and how to conduct it effectively.

What is a SWOT analysis?

Have you ever wondered how businesses manage to evaluate all the internal and external factors that could affect their success? Welcome to the SWOT analysis. It's a strategic planning tool that helps businesses identify their Strengths, Weaknesses, Opportunities, and Threats.

Strengths refer to internal factors that give a company an edge over its competitors. Think of a strong brand, loyal customer base, experienced employees, or efficient operations. Weaknesses, on the other hand, are internal factors that put a company at a disadvantage. These could be a weak brand, lack of funding, inexperienced employees, or outdated technology .

But what about external factors that could impact a business's success? That's where Opportunities and Threats come in. Opportunities are external factors that could help a company grow and succeed. This could include a growing market, new trends, technological advancements, or changes in regulations. Threats, on the other hand, are external factors that could harm a company's growth and success. Examples of threats could be economic downturns, increased competition, changes in consumer behavior, or natural disasters.

By conducting a SWOT analysis, businesses can make informed decisions about their strategic initiatives. By focusing their resources on areas with the greatest potential for growth and competitive advantage, businesses can increase their profitability, market share, and long-term success. So, whether you're a business strategist, executive, manager, or consultant, SWOT analysis can provide a fresh perspective on your company's current situation and potential for growth .

Why is a SWOT analysis important for businesses?

A SWOT analysis is essential for developing a business plan that maximizes a company's strengths, minimizes its weaknesses, and takes advantage of opportunities while mitigating threats.

Here are some of the reasons why a SWOT analysis is important for businesses:

• Identifies key areas for improvement By conducting the SWOT analysis, businesses can gain a better understanding of their internal weaknesses and external threats, which enables them to prioritize areas for improvement. They can then focus their resources and efforts on those areas, which can help them become more competitive and improve their overall performance.
• Maximizes the strength of businesses In addition to identifying areas for improvement, SWOT analysis also helps businesses identify their strengths. By leveraging these strengths, businesses can differentiate themselves from their competitors and take advantage of their competitive advantages. This can lead to increased market share, improved profitability, and overall success.
• Mitigates threats SWOT analysis can help businesses identify potential threats to their operations and take proactive measures to mitigate them. This could include diversifying their product or service offerings, investing in risk management strategies, or developing contingency plans to minimize the impact of unforeseen events.
• Takes advantage of potential opportunities In addition to mitigating threats, SWOT analysis can also help businesses identify potential opportunities for growth and success. By capitalizing on these opportunities, businesses can increase their market share, expand their customer base, and improve their overall performance.
• Provides a comprehensive overview Finally, SWOT analysis provides a comprehensive overview of a company's internal and external factors. This can help businesses develop a well-informed business plan that takes into account their current situation and potential for growth. By developing a strategic plan based on the SWOT analysis, businesses can increase their chances of success and achieve their long-term goals.

How to conduct a SWOT analysis?

Now that we know what a SWOT analysis is and why it is important for businesses, let's discuss how to conduct a SWOT analysis effectively. Here are the steps involved:

• Define the objective: The first step in conducting a SWOT analysis is to define the objective. What is the purpose of the analysis? What are the specific goals that the analysis aims to achieve? Defining the objective will help focus the analysis and ensure that it is relevant to the specific needs of the business.
• Gather information: Once you have defined the objective, the next step is to gather information about the business, its industry, and its competitors. This can include things like financial reports, customer feedback, market research, and competitor analysis.
• Identify strengths: What are the things that the business does well? What advantages does it have over its competitors? This can include things like a strong brand, loyal customer base, experienced employees, and efficient operations.
• Identify weaknesses: The next step is to identify the weaknesses of the business. What are the areas that need improvement? What disadvantages does it have compared to its competitors? This can include things like a weak brand, lack of funding, inexperienced employees, and outdated technology.
• Identify opportunities: To identify the opportunities available to the business , you need to address questions such as, What are the trends in the industry? What changes in regulations could benefit the business? What new technologies are emerging? This can include things like a growing market, new trends, technological advancements, and changes in regulations.
• Identify threats: The final step is to identify the threats to the business. What are the economic, social, and environmental factors that could impact the business negatively? What are the risks associated with the current situation and potential growth opportunities? This can include things like economic downturns, increased competition, changes in consumer behavior, and natural disasters.

Once the SWOT analysis is complete, the next step is to use the information to develop a strategic plan that maximizes the strengths of the business, minimizes its weaknesses, takes advantage of opportunities, and mitigates threats.

Who should conduct a SWOT analysis and what are the benefits?

A SWOT analysis can be conducted by anyone involved in the strategic planning process of a business. This can include business strategists , executives, managers, and consultants. Here are some of the benefits of conducting a SWOT analysis:

• Provides a fresh perspective on a company's strengths, weaknesses, opportunities, and threats, allowing for a more objective view of the situation.
• Facilitates strategic decision-making that enables businesses to make informed strategic decisions based on their current situation and potential for growth.
• Helps prioritize action items based on their importance and potential impact to the business.
• Encourages collaboration among team members, allowing for a more comprehensive analysis of the situation.
• Enables risk assessment associated with their current situation and potential growth opportunities.
• Improves communication among team members, ensuring that everyone is on the same page regarding the current situation and potential for growth.

This information helps businesses to prioritize their key strategic initiatives, focus their resources on areas with the greatest potential for growth and competitive advantage, and develop a strategic plan that aligns with their goals and objectives. Ultimately, a SWOT analysis helps businesses to make more effective strategic decisions that can lead to increased profitability, market share, and long-term success.

Example of a SWOT analysis

To help illustrate the SWOT analysis process, let's take a look at an example of a SWOT analysis for a company in the fashion industry:

• Strong brand recognition
• Innovative designs
• Loyal customer base
• Experienced and skilled designers and staff
• Efficient production processes
• Limited distribution channels
• Dependence on a few key suppliers
• High production costs
• Lack of international presence
• Limited online presence

Opportunities

• Growing demand for sustainable fashion
• Emerging markets in Asia and South America
• Expansion into e-commerce
• Partnership with influencers and celebrities
• Diversification of product offerings
• Economic downturns and recessions
• Increased competition from established and emerging brands
• Shifting consumer preferences and trends
• Changes in regulations and trade policies
• Disruptive technologies and innovations

Using this SWOT analysis, the company could focus on expanding its distribution channels and international presence, reducing production costs, and investing in sustainable and diverse product offerings.

Q: Is a SWOT analysis only for large businesses? A: No, a SWOT analysis is beneficial for businesses of all sizes, including small businesses.

Q: Can a SWOT analysis be conducted for a specific project or product? A: Yes, a SWOT analysis can be conducted for a specific project or product to evaluate its strengths, weaknesses, opportunities, and threats.

Q: How often should a SWOT analysis be conducted? A: It is recommended to conduct a SWOT analysis at least once a year or whenever there are significant changes in the industry, competition, or business environment.

Q: What should I do with the information gathered from a SWOT analysis? A: The information gathered from a SWOT analysis should be used to develop a strategic plan that maximizes strengths, minimizes weaknesses, takes advantage of opportunities, and mitigates threats.

In conclusion, a SWOT analysis is an important tool that can help businesses of all sizes and industries to identify their strengths, weaknesses, opportunities, and threats. By conducting a SWOT analysis, businesses can gain a better understanding of their current situation and potential growth opportunities, enabling them to make informed business decisions and develop effective business strategies. As a strategic leader or business strategist, it is important to conduct a SWOT analysis regularly to stay up-to-date with changes in the industry and competition, and ensure that your business plan is relevant and effective in achieving your business goals.

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What is a SWOT Analysis? (And When To Use It)

Table of Contents

A SWOT analysis is a planning process that helps your company overcome challenges and determine which new leads to pursue. “SWOT” stands for strengths, weaknesses, opportunities and threats. You should perform a SWOT analysis before you commit to any sort of company action, whether you are exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a plan midway through its execution.

While there are numerous ways to assess your company, one of the most effective is to conduct a SWOT analysis. Learn all about this approach below.

What is the objective of a SWOT analysis?

The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision . Albert Humphrey of the Stanford Research Institute created this method in the 1960s during a study conducted to identify why corporate planning consistently failed. Since its creation, the SWOT analysis has become one of the most useful tools for business owners to start and grow their companies.

“It is impossible to accurately map out a small business’s future without first evaluating it from all angles, which includes an exhaustive look at all internal and external resources and threats,” Bonnie Taylor, chief marketing officer at CCS Innovations, told Business News Daily. “A SWOT accomplishes this in four straightforward steps that even rookie business owners can understand and embrace.”

Use these free downloads to help grow your business. Create your own SWOT analysis matrix with our SWOT Analysis Template Spreadsheet or check out these free SWOT analysis templates from other companies.

When to perform a SWOT analysis

Employ a SWOT analysis before you commit to any company action, whether that’s exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a plan midway through its execution. Sometimes it’s wise to perform a general SWOT analysis to check on the current landscape of your business and improve operations as needed. The analysis can show you key areas where your organization is performing optimally and areas where operations need adjustment.

Don’t make the mistake of thinking about your business operations informally, in hopes that they will all come together on their own. If you take the time to put together a formal SWOT analysis, you’ll be able to see the whole picture of your business. From there, you can discover ways to improve or eliminate your company’s weaknesses and capitalize on its strengths.

While the business owner should certainly be involved in creating a SWOT analysis, it is often helpful to include other team members in the process. Ask for input from a variety of team members and openly discuss any contributions made. The collective knowledge of the team will allow you to adequately analyze your business from all sides. 

You can also conduct a personal SWOT analysis in your own life, whether for professional or other purposes. 

What does a SWOT analysis include?

A SWOT analysis focuses on the four elements of the acronym, allowing companies to identify the forces influencing a strategy, action or initiative. Knowing these positive and negative elements can help companies more effectively communicate what parts of a plan need to be recognized.

When drafting a SWOT analysis, individuals typically create a table split into four columns to list each impacting element side by side for comparison. Strengths and weaknesses won’t typically match listed opportunities and threats verbatim, although they should correlate, since they are tied together.

Billy Bauer, owner of ROYCE New York, noted that pairing external threats with internal weaknesses can highlight the most serious issues a company faces.

“Once you’ve identified your risks, you can then decide whether it is most appropriate to eliminate the internal weakness by assigning company resources to fix the problems, or to reduce the external threat by abandoning the threatened area of business and meeting it after strengthening your business,” said Bauer.

Internal factors

Strengths (S) and weaknesses (W) refer to internal factors, which are the resources and experience readily available to you.

These are some common internal factors:

• Financial resources (funding, sources of income and investment opportunities)
• Physical resources (location, facilities and equipment)
• Human resources (employees, volunteers and target audiences)
• Access to natural resources, trademarks , patents and copyrights
• Current processes (employee programs, department hierarchies and software systems) [See related articles: Best CRM software of 2024 and The Best Business Accounting Software Services of 2024 ]

External factors

External forces influence and affect every company, organization and individual. Whether these factors are connected directly or indirectly to opportunities (O) or threats (T), it is important to note and document each one.

External factors are typically things you or your company do not control, such as the following:

• Market trends (new products, technology advancements and shifts in audience needs)
• Economic trends (local, national and international financial trends)
• Funding (donations, legislature and other sources)
• Demographics
• Relationships with suppliers and partners
• Political, environmental and economic regulations

After you create your SWOT framework and fill out your SWOT analysis, you will need to come up with some recommendations and strategies based on the results. Linda Pophal, strategic marketing communication consultant and content marketer at Strategic Communications, said these strategies should focus on leveraging strengths and opportunities to overcome weaknesses and threats.

“This is actually the area of strategy development where organizations have an opportunity to be most creative and where innovative ideas can emerge, but only if the analysis has been appropriately prepared in the first place,” said Pophal.

In a SWOT analysis, strengths and weaknesses cover your own resources and processes. Opportunities and threats pertain to conditions outside your organization, such as market trends and regulations.

SWOT examples

Bryan Weaver, an in-house advisor to Scholefield Construction Attorneys, was heavily involved in creating a SWOT analysis for his firm. He provided Business News Daily with a sample SWOT analysis template and example that was used in the firm’s decision to expand its practice to include dispute mediation services. His SWOT matrix included the following:

Resulting strategy: Take mediation courses to eliminate weaknesses and launch Scholefield Mediation, which uses name recognition with the law firm, and highlights that the firm’s construction and construction law experience makes it different.

“Our SWOT analysis forced us to methodically and objectively look at what we had to work with and what the marketplace was offering,” Weaver said. “We then crafted our business plan to emphasize the advantages of our strongest features while exploiting opportunities based on marketplace weaknesses.”

Additional business analysis strategies

The SWOT analysis is a simple but comprehensive strategy for identifying not only the weaknesses and threats of an action plan, but also the strengths and opportunities it makes possible. However, a SWOT analysis is just one tool in your business strategy. Additional analytic tools to consider include the PEST analysis (political, economic, social and technological), MOST analysis (mission, objective, strategies and tactics) and SCRS analysis (strategy, current state, requirements and solution).

Consistent business analysis and strategic planning is the best way to keep track of growth, strengths and weaknesses. Use a series of analysis strategies, like SWOT, in your decision-making process to examine and execute strategies in a more balanced, in-depth way.

Max Freedman and Nicole Fallon contributed to this article. Some source interviews were conducted for a previous version of this article.

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How To Write a SWOT Analysis For a Business Plan

An acronym standing for Strengths, Weaknesses, Opportunities, and Threats, a SWOT Analysis is designed to help you analyze your company’s capabilities against the realities of your business environment. Doing so allows you to direct your business toward areas where your abilities are the strongest and your opportunities are abundant. It also allows you to develop short and long-term strategies for your business. A well-developed SWOT analysis will:

• capture business opportunities by capitalizing on business strengths
• overcome weaknesses to take advantage of business opportunities
• monitor potentially threatening outside forces while maintaining or developing internal strength response capabilities
• eliminate weaknesses to protect your business from threats

Writing a SWOT Analysis  

When writing your SWOT Analysis, we recommend involving employees with different perspectives and stakes in your company, for example, management, sales, customer service, and customers.

To write a SWOT Analysis for a business plan, we recommend following these four steps. You can use a four-square SWOT Analysis template, or if more manageable, you can make lists for each category.

Example of a four-square template:

After you’ve gathered the right group of employees together, brainstorm your company’s strengths and weaknesses and its opportunities and threats, first individually and then collectively.

Strengths and weaknesses are internal to your company and can change over time with work. Examples of internal factors include:

• Company culture
• Company image
• Operational efficiency
• Operational capacity
• Brand awareness
• Market share
• Financial resources
• Organizational structure

Opportunities and threats are external, happening whether you want them to or not, and can’t be changed. Examples of external factors include:

• Societal changes
• Competitors
• Economic environment
• Government regulations
• Market trends

Strengths refer to the positive, tangible and intangible attributes internal to your company that are within your control.

To help you determine what your company’s strengths are, ask yourself:

• What does the company do well?
• The positive attributes of your employees (knowledge, background, education, credentials, network, reputation, or skills)
• The tangible assets of the company (capital, credit, existing customers or distribution channels, patents, or technology)
• What advantages does the company have over our competitors?
• Do we have strong research and development capabilities? What about manufacturing facilities?
• What other positive aspects, internal to the business, add value or offer us a competitive advantage?

Any aspect of your business that detracts from the value you offer or places you at a competitive disadvantage is a weakness. To determine your company’s weaknesses, ask yourself these questions:

• What factors detract from a competitive edge?
• To accomplish my objectives or compete with my strongest competitor, what areas need to improve?
• What does the business lack? Is it expertise? Maybe it’s access to skills or technology?
• Does the company have limited resources?
• Is my business in a poor location?

Opportunities

Opportunities are attractive external factors that denote reasons your business is likely to thrive. To identify your business opportunities, ask yourself:

• What opportunities are there in my market or my environment that I can benefit from?
• Does my business have a positive perception?
• Has my market recently grown, or have there been other changes that have created an opportunity?
• Is this opportunity ongoing or time-limited? How critical is my timing?

Any external factor beyond your control that could place your strategy, or the business itself, at risk is a threat. Although you have no control over threats, you can benefit by having a contingency plan to address them if and when they occur. To identify threats, ask yourself:

• Who are my existing or potential competitors?
• What factors beyond my control could place my business at risk?
• Are there challenges created by an unfavourable trend or development that could lead to declining revenues or profits?
• What situations could threaten my marketing efforts?
• Have supplier prices or the availability of raw materials significantly changed?
• Are there any shifts in consumer behaviour, the economy, or government regulations that could reduce my sales?
• Are any of my products, equipment, or services obsolete due to the introduction of a new product or technology in the market?

Once you’ve brainstormed your lists of strengths, weaknesses, opportunities, and threats, we recommend ranking them through a voting process. At the end of this process, you should have a prioritized list of ideas, with one person, usually the CEO, having the final call on priority.

Divide your strengths into two groups:

• Group 1: Strengths that can help you take advantage of opportunities facing your business.
• Group 2: Strengths that can help you head off potential threats.

Divide your weaknesses into two groups:

• Group 1: Weaknesses that require improvement before you can take advantage of opportunities.
• Group 2: Weaknesses that you need to completely and quickly overhaul and convert into strengths to avert potential threats to your business.

Continually refer to your lists as you make decisions that contribute to your business, including developing strategies and actions for capitalizing on opportunities. Questions that can guide your decision making include:

• Do strengths open any opportunities?
• How can we convert weaknesses to strengths?
• What do we have to do to take advantage of opportunities?
• How can we best neutralize threats?

SWOT Analysis For a Business Plan Conclusion

Once you have finalized your SWOT Analysis and added it to your business plan, don’t just leave it and forget it. A SWOT Analysis is a crucial element in any business plan and should be revisited regularly, at least annually.

Suppose your business is facing significant changes in the marketplace or competitive conditions, experiencing growth problems, or failing to meet goals. In that case, you may want to revisit your SWOT Analysis more frequently.

It should reflect the world around you as it is, not the way it was. It’s an invaluable tool for leveraging your company’s strengths, minimizing threats, taking advantage of available opportunities, strategic planning, and determining company objectives.

At Bsbcon, we are available to provide support and guidance with your company’s SWOT Analysis, ensuring that it reflects the current state of your business and considers all factors needed to ensure your business’s short and long-term goals and successes. Once your SWOT Analysis is complete, we will work with you to incorporate it seamlessly into your business plan.

Each of our business plans are tailor-made (no templates or plugins!) and designed to be easily implementable in practice. We have business plans for bank loans, investors, strategic purposes, immigration, and more.

Contact us today to get started on accomplishing everything you’ve dreamed with consumer-tested, expert panel-approved business plans that outline your steps to success.

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How to Identify Strengths & Weaknesses in a Business Plan

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How to design an effective business plan, basic dimensions of a marketing plan.

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Writing a strong business plan is easier than you might think because most business plans follow the same basic format. If you are reviewing a plan you've already written or taking a look at one for a friend, knowing how to spot the strengths and weaknesses in the business plan helps you create the most accurate plan.

Look for a Comparative Analysis

When you analyze your competition in a business plan, you should include a comparative analysis, not just a competitive analysis. A competitive analysis looks at your direct competition, while a comparative analysis looks at the indirect competition.

This means a fitness center business plan should include a competitive analysis of other gyms and fitness centers. The plan should also include a comparative analysis of other fitness options people choose instead of going to the gym.

For example, some people don't go to gyms because they jog or play tennis for fitness. A gym business plan should address why people prefer to jog or play tennis (one is solitary, and one is social) and see if they can use those factors to get people to the gym.

Check for a Broad Marketing Approach

Marketing consists of product development, pricing strategies, places of sale and the promotion of a product or service. If a business plan focuses only on the Fourth P of the Four Ps—the marketing mix—it will be weak.

The plan mustn't confine marketing to social media campaigns, advertising, public relations and other promotions. A good business plan should contain separate sections on product development, pricing strategies, distribution channels and promotions.

Anticipate Marketplace Disruption

In addition to analyzing your marketplace as it stands today, your business plan should consider what might happen in the future. You must address new technologies, economic conditions, environmental factors, consumer-buying trends and other factors that might change.

For example, a business plan for a company that makes hard hats for coal miners should address the fact that more and more coal mining is done using machines, not miners, and that environmental laws are making it more difficult for utilities and factories to burn coal. What will that do to the demand for coal miner hard hats in five years?

Reflect Staffing Details

Investors and lenders look at a business plan to see who will be managing the business, according to the U.S. Small Business Administration . If you don't know who will be handling your marketing, IT, sales and other functions, you should at least know what positions your business will have.

A business plan should include an organizational chart that shows the chain of command, who will do what work and who will report to whom. If you can, include job descriptions for the positions you plan to fill.

Analyze Financial Projections

The more you can determine the costs to launch and run your business, the stronger your business plan will be. Budget projections should include not only the cost to make a product but also the expense to run the business and sell the product.

You need to anticipate the overhead you must apply to each unit you sell if you want to know how to price your products to reach specific profits at different sales levels. As sales increase, the overhead cost for each unit decreases, increasing your profit margin. Investors and lenders want to see profit projections using conservative and optimistic forecasts.

Don't forget to include your pre-launch expenses, which have to be paid off during the first year or several, advises Smarty Cents .

• U.S. Small Business Administration: Write Your Business Plan
• Smarty Cents: How to Write a Business Plan the Right Way

Steve Milano is a journalist and business executive/consultant. He has helped dozens of for-profit companies and nonprofits with their marketing and operations. Steve has written more than 8,000 articles during his career, focusing on small business, careers, personal finance and health and fitness. Steve also turned his tennis hobby into a career, coaching, writing, running nonprofits and conducting workshops around the globe.

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Home » Business Cycle » Business strengths and weaknesses

How to analyze business strengths

Business is a sport for gladiators – but building a business takes more than grit and determination. It takes the ability to be honest with yourself. To recognize that you have both business strengths and weaknesses that can make or break your success. And to put in the work to transform those weaknesses into opportunities and better use your strengths. By making a list of business strengths and weaknesses and analyzing them, you can create a better business map to achieve sustainable, long-term growth. 

Reveal your business strengths and weaknesses right now

What are the strengths and weaknesses of a business?

Your business strengths and weaknesses are the areas in which your business excels and those where you fall behind the competition. They can include anything from your product to your processes, supply chain or company culture . They can also change over time as your business grows and the market evolves.

Business strengths and weaknesses are often thought of in terms of SWOT analysis – a planning technique that looks at strengths, weaknesses, opportunities and threats. But your strengths and weaknesses are the most vital part of any business analysis, because when you are in control of your internal processes, you’re better prepared to face external challenges and turn them into opportunities.

List of business strengths and weaknesses

It isn’t always easy to recognize your business strengths and weaknesses . Every business owner has blind spots, especially when it comes to how their own psychology affects their organization. But an honest assessment will likely turn up at least a few common strengths and weaknesses.

Common business strengths

Strong, innovative company culture

Unique product or knowledge

Excellent efficiency and productivity

Customer service that creates raving fan customers

Ability to scale sustainably

Speed to market

High adaptability

Diversification of products or services

Strong, decisive leadership

Common business weaknesses

Weak, fragmented company culture

Lack of product differentiation

Low efficiency and high waste

Poor customer service

Unregulated and unplanned growth

Slower to market than competitors

Rigid structure that reduces agility

No diversification

Leadership limitations such as lack of self-awareness 

How to identify business strengths and weaknesses

Every business has different traits, so this list of business strengths and weaknesses is just the beginning. To really uncover your own, you’ll need a strong process.

1. Become more self-aware

A business is only as strong as the psychology of its leader, which is why self-awareness in business is so important. Self-awareness means being in touch with your own thoughts and feelings and how they affect your behavior. When you are self-aware, you’re more able to control your emotions , make tough decisions and be a better leader. You’re also able to look at your business strengths and weaknesses more objectively and assess how your own actions and mindset affect your success – or failure.

2. Know what to look for

Sometimes the answer to “ What are the strengths and weaknesses of a business ?” is obvious. Revenue growth , diversification, physical assets and intellectual property are common places to start. But there are many other areas to look at when performing your assessment. Do you have a particularly talented team? A strong company culture that encourages risk-taking and innovation? Efficient operations that save time while improving productivity? Don’t forget about these key areas.

3. Put yourself in a customer’s shoes

Everything goes back to creating raving fan customers , including how you identify business strengths and weaknesses . You need to uncover your X factor : the way that you provide more value than anyone else. That’s your biggest business strength . Asking for customer feedback and taking it to heart is also one of the best ways to uncover your weaknesses. Customers will almost always be honest – just ask them.

4. Ask around

You’ll never get a holistic view of your business strengths and weaknesses if you only listen to your own opinions. Always interview other stakeholders, board members and team members at every level of the company. Join a board or ask your mentor for an outside opinion. Remember what Tony says: “Successful people ask better questions, and as a result, they get better answers.” In all of your interviews, be sure you’re asking the right questions and practice deep listening to instill trust and get honest feedback.

5. Look at the competition

Your business strengths and weaknesses may be internal factors, but it is still essential to look at your competition. You may think you have a strong marketing strategy, customer service or processes, but competitive analysis reveals otherwise. Or perhaps you’ll realize that you’re not as weak in some areas as you thought. Determining where you can win is a natural next step. 

6. Continually assess

Making a list of business strengths and weaknesses isn’t a one-time task. Any successful business owner needs to commit to constant and never-ending improvement – and that means continually reassessing every aspect of your business. Markets change. Businesses grow. Str engths can even become risks if they become too ingrained and limit your agility and ability to innovate. Review your business strengths and weaknesses at least once a year using the process outlined here.

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79 Weakness Examples for a SWOT Analysis

In a SWOT Analysis, weaknesses are written in the top right quadrant. They highlight the internal weaknesses that you or your organization need to address to meet your goals.

Examples of weaknesses for a SWOT analysis might include lack of motivation, lack of a clear vision, or poor time management skills.

SWOT Analysis Weakness Examples for Students and Individuals

Unmotivated, lacking goals, working in teams, leadership, writing skills .

• I can become unmotivated if I am not seeing success on a regular basis.
• I don’t really have any goals that I’m inspired by.
• I struggle to work in teams because I feel I need to have control over my projects in order to achieve success.
• I haven’t developed strong leadership skills so it will be hard to get people to follow my vision.
• I have poor writing skills that make it hard for me to meet this particular goal (e.g. a college goal).

Research skills, academic skills, shy, introverted, lacking energy.

• I have poor research skills which will make it really hard for me to figure out what I need in order to achieve my goals.
• I struggle with academic topics and prefer practical tasks, so this goal will be hard to meet for me.
• I am really shy and this goal will require me to step out of my comfort zone a lot.
• I am an introvert and I’ll need to talk to people to meet this goal. This will exhaust me.
• I can lack energy some days which sets me back on my timeline for meeting my goals.

Lacking confidence, easily distracted, talking on a phone, moody, low social capital.

• I lack confidence in myself so I’m not sure if I’ll succeed.
• I get easily distracted by nearby people, my phone, or other things that provide more instant gratification than the tasks I need to get done.
• I am bad at talking on the phone which fills me with anxiety. I’ll need to overcome this to achieve my goals.
• I can get into grumpy moods . I’ll need to be careful about this in order to complete these tasks professionally.
• I have low social capital (in other words, I don’t know many people who I could lean upon to help me achieve this goal).

Stubborn, disorganized, poor language skills, poor time management, unprepared.

• I am stubborn and probably don’t seek help enough. I will need to try to seek help from my supervisor when necessary to keep me on track.
• I can be disorganized at times which can get me into trouble. Sometimes I lose track of my notes.
• I think my English language skills are not strong and this can really get in the way of effective communication.
• I have poor time management skills and often find I’m rushed at the end of a job to get it done in time. I’ll need to create a series of milestones to keep myself on track.
• I feel unprepared to start working toward this goal because I’m not currently skilled enough or in the right headspace for this yet.

Struggle with change, not creative, not a scientific thinker, struggle with authority figures.

• I struggle to deal with change . It makes me anxious, uncomfortable, and irritable.
• I am not very creative and I think this task is going to require me to come up with some creative solutions.
• I am not very good at scientific thinking and this task will require some scientific knowledge. I may need to seek help.
• I struggle with authority figures who haven’t earned my respect. There is an authority figure I have to work with here who I may struggle with.
• I’m not very good at mathematics and I know I’ll need some math skills to meet my goals.

Fail to follow through, lack of resilience, lack of ambition, lack of enthusiasm.

• Historically, I have failed to follow through on goals I have set myself.
• I think resilience is a weakness of mine. I will give up too easily rather than persevering through the dip.
• I struggle to get started of a morning. I’m not a morning person and waste hours every day simply waking up.
• I lack ambition at the moment because I don’t know what I want and don’t have a clear vision.
• I’m not very enthusiastic about the goal I’ve set myself which may mean I’ll give up at some point before I succeed.

Worry, dishonesty, sensitivity, bad with technology, learning disability.

• I worry about making mistakes. This often prevents me from taking action.
• I struggle to be honest when it might hurt someone. This often means problems go unresolved. It may cause problems in team work situations.
• I am sensitive to feedback and can sometimes get defensive when people let me know I have done a bad job.
• I really struggle with technology and the technology requirements for completing my goals will be a challenge.
• I am aware of my learning disability and the fact it may slow down my progress in reaching my goals.

Poor prior knowledge, poor focus, flustered, lack of self-control.

• I don’t have much prior knowledge on this topic so I’m starting from a low base.
• I have very poor focus and am easily distracted by social media.
• I get flustered easily which makes me lose my focus on my tasks.
• I capitulate in the face of competition which could cause me to give up before reching this goal.
• I often lack self-control and end up giving up on tasks if I find them tedious.

Risk-taker, bad with money, shiny object syndrome, too many goals.

• I sometimes take unnecessary risks . This may cause setbacks.
• I am not good with money so may blow the budget I have assigned myself for this goal.
• I have shiny object syndrome and will give up on goals easily if another one looks more appealing.
• I have too many goals right now which divides my attention and may prevent me from meeting any goal.
• I find that social life takes over my work and study life a lot of the time which sets me back from reaching professional goals.

Bad support network, easily deterred, poor self-belief, fear of failure.

• I don’t have a support network to help me through when times get tough.
• I am easily deterred when people criticize me.
• I struggle with self-belief which often prevents me from taking action.
• I am afraid of failure and how people might think of me if I fail. This often prevents me from taking action.

Related: Strengths Examples for a SWOT Analysis

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SWOT Analysis Weakness Examples for Businesses and Organizations

No business plan, unmotivated, high competition, lack of experience.

• Our team does not have a business plan or business strategy to help us achieve our goals yet.
• There are some members of the team that aren’t motivated . We will need to either help bring the team along on the journey more effectively or change the team.
• We are launching products into a crowded market with high competition .
• Our team is missing people with experience and expertise in a few key areas that could help us achieve success. We may need to hire people with that expertise.
• Lack of intellectual property and patents will mean competitors may swoop in to take market share before long.
• We are not yet an established brand with a reputation in this field. This means a lot of brand building is necessary.

Lack of expertise, lack of cultural diversity, team communication.

• We currently don’t have a clear plan for customer support and we have some bad reviews about our support right now.
• Our business has grown to a point that it is too large to pivot easily, unlike smaller competitors.
• We lack technical expertise within our team. Some training days are required.
• There is a lack of cultural diversity in the team. A diverse team might be able to bring a broader range of perspectives when generating business ideas.
• Our communication between teams needs to be improved. We may need new communication channels.

Too much bureaucracy , low social capital, low profit margins, stagnant business.

• There is a lack of SOPs (standard operating procedures) which may be beneficial for streamlining, speeding up, and standardizing our operations.
• Our business has too much bureaucracy (for example, every change has too many checks and balances) which slows everything down.
• We have low social capital (meaning we don’t have good relationships with people in our industry who could open doors for us).
• We struggle with low profit margins which means we may be at risk of having quarters with negative revenue.
• We have suffered from stagnant business growth in recent quarters which may be a sign that our business is losing steam.

Unreliable supply chain, lack of product diversity, product quality, staff training.

• We have an unreliable supply chain without good contracts with suppliers. This may cause delays in providing goods and services to the market.
• We have low product diversification meaning that we rely on only one or two products to generate revenue.
• We don’t have a consumer loyalty program and we don’t have enough returning customers.
• We believe our product quality needs to improve with future iterations to keep up with competitors.
• Our staff training is not up to date in several areas. We will need training days targeted at skills required to meet our goals.

Lack of financial resources, no marketing plan, no social media presence, no email list.

• We suffer from a lack of financial resources due to recent loss of several investors. This will slow down growth.
• We don’t have a clear marketing plan . We need to identify ways to appeal to a wider market of potential buyers.
• We do not have a strong social media presence . Our social media strategy needs improvement in order to grow our pool of buyers.
• Our SEO presence is poor. Our website does not rank well on search engines like Google and Bing.
• We do not have a customer email list to promote to. We need to build our email list so we can email customers when new product lines are available.

Low market share, poor company culture , no full-time staff, language barriers.

• We suffer from low market share compared to major competitors. Being a smaller company, we need a more agile marketing program to get the attention of our competitors’ loyal customers.
• We would like to see a stronger company culture to show our potential customers and employees what we stand for. We may need to prosecute a campaign around environmentalism or another cultural issue that we care about.
• We lack full-time staff due to funding shortages. This means many members of our team are divided between several part-time jobs.
• Several members of our team have language barriers that prevent communication. Training on English language communication skills can help.

Related: Opportunity Examples for a SWOT Analysis

How to Make a SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and costs. They are four categories you need to reflect on to evaluate your current situation and what’s needed to meet your goals.

• Strengths  are internal factors about you that could be helpful in achieving your goals. If your SWOT analysis is for a product or business, it’s the strengths of the product or business. If it’s for a person, it’s your personal strengths.
• Weaknesses  are internal factors that might get in the way of you achieving your goals. Knowing your weaknesses can help you work on ways to improve. 
• Opportunities  are external factors that might help you to meet your goals. An example is a new technology or training opportunity you can take advantage of.
• Threats  are external factors that might hinder your goals. Foreseeing external threats can help you avoid them and prepare for them.

Related: Threats examples for a SWOT Analysis

SWOT Analysis Template

Goal: Write down what your goal is.

See More: 28 Personal SWOT Analysis Examples for Students

Example SWOT Analysis for a Team

Goal: To complete our team project and get the best grade in the class.

Example SWOT Analysis for Coca-Cola

Goal: To deliver long-term growth and dividends for investors.

When was the SWOT Analysis Created?

The SWOT analysis was invented in the 1960s by Albert Humphrey from the Stanford Research Institute. Humphrey created the SWOT analysis as a brainstorming tool to help people to reflect on the best ways to achieve goals while avoiding problems. The matrix looks at positives and negatives in the following four categories:

• Strengths: Internal factors + Positives
• Weaknesses: Internal factors + Negatives
• Opportunities: External factors + Positives
• Threats: External factors + Negatives

Use the SWOT analysis template to brainstorm and reflect on how to achieve your goals. When thinking about weaknesses in a SWOT analysis, focus on things you know you are not too good at. These could be personal traits including both soft skills and hard skills that you know you’ll need to improve upon to meet your goals.

Chris Drew (PhD)

Dr. Chris Drew is the founder of the Helpful Professor. He holds a PhD in education and has published over 20 articles in scholarly journals. He is the former editor of the Journal of Learning Development in Higher Education. [Image Descriptor: Photo of Chris]

• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ What is Educational Psychology?
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ What is IQ? (Intelligence Quotient)
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 5 Top Tips for Succeeding at University
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 50 Durable Goods Examples

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How to Identify Strengths & Weaknesses in a Business Plan

by Brian Hill

Published on 1 Jan 2021

In a business plan, the discussion of a company's strengths and weaknesses is often included in a section known as SWOT -- strengths, weaknesses, opportunities and threats. Strengths are what the company does particularly well. It could be offering superior products or being particularly efficient in manufacturing. Weaknesses are things that keep the company from achieving the revenue growth or profitability the business owner seeks. Small businesses often find that one of their weaknesses is a lack of financial resources.

Compare the Company to the Ideal

One of the first steps in creating a business plan is establishing a long-range vision for the company -- how the owner sees the company growing and becoming more profitable in the future. He creates his own picture of what the company will look like if everything goes as well as planned. This ideal future version of his company will undoubtedly being doing some things much better than the current company is. He evaluates what current weaknesses need to be addressed that are roadblocks to reaching his ideal future.

Compare the Company to Major Competitors

A small business owner must know his competitors' strengths and weaknesses in addition to those of his own company. Including a side-by-side comparison of these strengths and weaknesses in his business plan gives the owner a good idea of how to build competitive advantage -- he markets to his strengths and tries to avoid competing head-on with competitors where they are strongest or where his company may be weak.

Review Actual Financial Results

The company's strengths and weaknesses show up in the financial results -- its profit and loss statement. The business owner should produce a financial report that compares actual results to the forecast numbers in the business plan. Each month, or at least each quarter, he should analyze the largest categories of revenues and expenses, and determine the reason for any variances, whether positive or negative. If profits continue to rise because gross margin percentages are increasing, he knows that production efficiency is becoming one of the company's strengths. Continued revenue shortfalls are an indication that the company's marketing strategy is not working; it is a weakness that requires the business owner's immediate attention.

Compare Performance to Industry Averages

Many industries have trade associations that survey members and publish statistics about how, on average, companies in the industry are performing. If the business owner sees that his own statistics vary significantly from industry averages, such as in gross margin percentage or profit as a percentage of sales, he can get a good idea of his company's relative strengths and weaknesses. If a company spends a much higher percentage on personnel costs than industry averages, the owner could conclude that employee productivity is one of the company's weaknesses. He would devise strategies and tactics to address this issue in the business plan.

Solicit Advice From All Team Members

A company may have hidden strengths that the owner is unaware of -- things that could be developed into opportunities to increase revenue. A business owner may also be unaware of things that are seen as weaknesses by the company's customers. Employees who come into close contact with customers every day would be aware of those weaknesses. Asking employees for input during the planning process is essential to having an accurate depiction of the company's current position, including its strengths and weaknesses, and that awareness forms the basis of a sound plan for the future.

500+ business plans and financial models

Real Estate Agency Business Plan PDF Example

• May 7, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful real estate agency. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your real estate agency’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a real estate agency business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the real estate industry, this guide, complete with a business plan example, lays the groundwork for turning your real estate agency concept into reality. Let’s dive in!

Our real estate agency business plan covers all essential aspects necessary for a comprehensive strategy. It details operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Provides an overview of the real estate agency’s business concept, market analysis , management, and financial strategy.
• Real Estate Brokerage Services & Fees: Describes the brokerage services including property sales and acquisitions, along with a fee structure.
• Property Management Services & Fees: Outlines property management services offered and their respective fees.
• Key Stats : Offers data on industry size , growth trends, and market positioning.
• Key Trends: Highlights significant trends impacting the industry, such as digital transformation and changing buyer preferences.
• Key Competitors : Analyzes primary competitors and differentiates the agency from these competitors.
• SWOT : Analyzes strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Outlines tactics for attracting new clients and maintaining relationships.
• Timeline : Sets out key milestones from inception through the first year of operations.
• Management: Information on the management team and their roles within the agency.
• Financial Plan: Projects the agency’s financial performance over the next five years, detailing revenue, profits, and anticipated expenses.

Real Estate Agency Business Plan

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Trusted by 12,000+ entrepreneurs, consultants and investors

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your real estate agency’s business plan, offering a concise overview of your agency and its services. This section outlines your market positioning, the variety of real estate services offered—including property sales, rentals, and property management—its location, size, and a description of day-to-day operations.

This section should also discuss how your real estate agency will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your agency’s unique selling points that differentiate it from these competitors.

Additionally, you should include information about the management and co-founding team, detailing their roles and contributions to the agency’s success. Furthermore, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your agency’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Real Estate Agency, the Business Overview section can be concisely divided into 2 main slides:

Real Estate Brokerage Services & Fees

Briefly describe the agency’s professional and welcoming office environment and its conveniently located premises near major residential and commercial areas, which enhances accessibility and client traffic. Detail the range of real estate brokerage services including buying, selling, and leasing properties, and discuss the agency’s fee structure, which is typically based on a percentage of the property sale or lease price, reflecting the high quality of service and market alignment.

Property Management Services & Fees

Describe the comprehensive property management services offered that cover tenant screening, rent collection, maintenance, and financial reporting. The pricing for these services is usually based on a percentage of monthly rental income or a flat monthly fee, with potential additional charges for special services like emergency maintenance or tenant placement, ensuring landlords a hassle-free ownership experience.

Make sure to cover here _ Real Estate Brokerage Services & Fees _ Property Management Services & Fees

Market Overview

Industry size & growth.

In the Market Overview of your real estate agency business plan, start by examining the size of the real estate industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in sustainable and eco-friendly properties, the growing demand for smart homes equipped with the latest technology, and the rising popularity of urban living spaces among millennials and young professionals. For example, highlight the demand for properties that cater to specific lifestyle needs, alongside the rising preference for locations with comprehensive amenities and green spaces.

Key Competitors

Then, consider the competitive landscape, which includes a range of agencies from large national firms to local boutiques, as well as online real estate platforms. For example, emphasize what makes your agency distinctive, whether it’s through exceptional customer service, a unique range of property management services, or specialization in certain types of properties such as luxury homes or commercial real estate. This section will help articulate the demand for real estate services, the competitive environment, and how your agency is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the real estate agency , highlighting Strengths (such as experienced realtors and a diverse property portfolio), Weaknesses (including high agent turnover or reliance on local market conditions), Opportunities (for example, the growing demand for rental properties or the potential for tapping into luxury real estate markets), and Threats (such as fluctuations in real estate prices or new housing regulations that may impact operations).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional events like open houses, an engaging online presence, and community involvement. This strategy should also incorporate using social media platforms to showcase properties and share customer testimonials, enhancing the agency’s visibility and client engagement.

Finally, create a detailed timeline that outlines critical milestones for the real estate agency’s launch, marketing initiatives, client acquisition, and expansion goals. This timeline should ensure that the business moves forward with clear direction and purpose, setting specific objectives for brand establishment, market penetration, and long-term growth.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the real estate agency’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the real estate agency toward its financial and operational goals.

For your real estate agency business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your real estate agency’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your real estate agency business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

Ukraine war latest: 'Undeclared Russian military intelligence officer' expelled from UK

The Home Office has expelled a Russian defence attaché as part of a series of measures against Moscow. James Cleverly said the attaché was an "undeclared military intelligence officer". Ask our military analysts or international correspondents a question in the box below.

Wednesday 8 May 2024 20:00, UK

• Home Office expels Russian diplomat who was 'undeclared military intelligence officer'
• Moscow 'developing nuclear power plant' for joint moon base with China
• Russia hits power facility and other energy infrastructure in massive overnight attack
• Dominic Waghorn: Russia may have crossed the line - but UK move to expel attache increases risk of dangerous escalation
• Ivor Bennett analysis: Painted as a modern-day Tsar, Putin seems more confident than ever
• Ed Conway : Russian oil still seeping into UK - the reasons why sanctions are not working
• Live reporting by  Ollie Cooper

Ask a question or make a comment

Thanks for following our live coverage, we'll be back soon with more live updates. 

Kosovo's foreign minister has said her country is convinced Russia must lose the war in Ukraine for conflict not to spread further in Europe.

Donika Gervalla-Schwarz said her young nation's support for Ukraine was unconditional - despite Kyiv not having recognised Kosovo's independence.

Ms Gervalla-Schwarzd her small Balkan nation, which declared its independence from Serbia in 2008, is repeatedly reminded of the aggressive intentions of both Serbia and its ally Russia.

"Ukraine hasn't recognised the Republic of Kosovo as a state, but we really believe that we know exactly what Ukraine is going through," she told The Associated Press in an interview.

"And we know that there is only one solution, not only for Ukraine, but for Europe," she said.

"It can only be Russia to lose the war and Ukraine to win this war. Otherwise, Europe should prepare for other conflicts in our continent."

The people of Kosovo were the targets of war crimes and other atrocities by Serbia's security forces in the 1990s, an experience that led Kosovo to seek independence.

"While Kosovo is a small state with very modest possibilities to help, we have tried to be very helpful with Ukraine and have not hesitated to show our unconditional support and sympathy to the people and to the state of Ukraine," Ms Gervalla-Schwarz said.

Lord Cameron has called the UK's measures on a Russian defence attache "an unequivocal message" to Moscow. 

The foreign secretary was replying to James Cleverly's post on X in which he said the Home Office expelled a Russian defence attache as part of a series of measures against the country.

Other measures in the package include removing the diplomatic premises status from several Russian owned properties in the UK and capping the amount of time Russian diplomats can spend in the UK.

Budapest is once again raising eyebrows across the world's biggest military alliance as it pledges to defy a NATO initiative. 

The alliance's long-term plan to support Ukraine militarily was agreed in April, but was dubbed a "crazy mission" by Hungary's foreign minister today. 

Under the plans, NATO would take over some coordination work from a US-led coalition known as the Ramstein group.

Discussing the plans today, Peter Szijjarto said: "Hungary will stay out of NATO's crazy mission despite all the pressure."

Relations between Budapest and NATO have soured because of Hungary's foot-dragging over the ratification of Sweden's NATO accession - finally passed by Budapest in March - and also over nationalist Prime Minister Viktor Orban's close ties with Moscow. 

The Russian embassy in London has said there will be "an appropriate response" after Britain expelled a Russian defence attache.

The embassy said the restrictions that had been imposed were done under a "groundless and ridiculous pretext", according to Russian state news agency TASS.

It comes after Russian foreign ministry spokeswoman Maria Zakharova was reported as telling journalists that the Kremlin will respond appropriately following the expulsion.

Dominic Waghorn, international affairs editor

It's always assumed defence attaches play some kind of role gatherling intelligence and that is generally tolerated by their host countries. 

They could be gathering data about weapons production for instance or ship building but there is a line they are expected not to cross. 

The assumption here is that the Russians have broken the rules of the game.

But the British government will have thought long and hard before expelling the Russian. It doesn't come without cost.

In their day jobs defence attaches play a crucial role in liaising with their hosts.  That can be very important in terms of avoiding misunderstandings that could lead to unnecessary and dangerous escalation. 

Losing Russia’s defence attache in London deprives the UK of one more line of liaison at a time when clear understanding and clarification could be essential to avoiding deepening conflict.

That is not ideal at a time of war. 

What is not clear is how much these moves are connected specifically to the conduct of the Russians involved or should they actually be seen more as another chapter in the diplomatic war underway between Russia and the UK.

The UK has undoubtedly weakened Russia's ability to spy in the UK and gather intelligence but these measures will also affect Britain's ability to predict and avoid potential escalation. 

That will be made even worse if Russia, as may be expected, responds with like-for-like retaliation

Seven people have been injured by Russian shelling in eastern Kharkiv, according to the region's governor.

Oleg Synegubov said among those wounded was an eight-year-old girl and three boys, two aged 14 and the other 15. 

"Two [of the] boys are in serious condition, [the other] boy and [the] girl are in average condition," he said. 

One 55-year-old civilian of unspecified gender was also hospitalised. 

Two women had minor injuries. 

Defence Secretary Grant Shapps has offered his thoughts on the expulsion of a Russian defence attache the government has accused of being an undeclared military intelligence officer. 

"Today we've expelled Russia's defence attache who has been working as an intelligence officer for Putin in the UK," he said on X. 

"We will not tolerate Putin’s efforts to undermine our nation and democracy and will continue to stand up for freedom here and in Ukraine."

Each week we ask readers for their questions on the war for our military analysts and international correspondents.

This week,  military analyst Sean Bell  answers:

Why is Ukraine focusing its drone attacks on oil refineries rather than near the front lines? Mike

Thanks, Mike, for this topical question.

Although the ultimate metric of success in this brutal war is territory gained, to achieve that outcome requires a more complex strategy than simply focusing on the frontline battle.

One of the reasons that the Royal Air Force was formed as an independent service was the recognition that greater impact could often be achieved by targeting enemy logistics and supply lines behind the frontline, rather than simply focusing effort on the "close battle".  

Military action is ultimately driven by political will to achieve a desired end-state; the military simply creates the conditions in which a political outcome can be achieved.  

At the tactical level of warfare, the focus is on the battles of individual soldiers and units prevailing against tactical targets.

However, at the other end of the spectrum, senior military strategists seek to attack the enemy's "centre of gravity" - the one thing that the enemy cannot afford to lose and thus must protect at all costs.

'Fight smarter'

In the Second World War, much of the Allied bombing effort was targeting German industrial capacity, as without the ability to regenerate military equipment and ammunition, the war would not be sustainable.  

Ukraine has a smaller army than Russia, and so any conventional attritional battle would favour Russia.

Therefore, Ukraine has to try to "fight smarter" and erode Russia's will - or capacity - to fight.  

A war on this scale consumes huge quantities of resource, which has to be funded in some way.  

Russia's oil exports fund Vladimir Putin's military campaign and also pay for imports of vital munitions from North Korea and Iran.  

By targeting the enemy's oil facilities Ukraine will be aiming to reduce Russia's export capacity, which in turn impacts Russia's ability to fund the war.  

That might not help the close battle, but could undermine Russia's commitment to a longer-duration conflict.

And, although drones are an "irritation" to the frontline forces, the quantity of explosives they are able to deliver is relatively small, so their effect is relatively limited.  

However, an oil facility is very vulnerable to a relatively small-scale explosion, which can spread swiftly to destroy a crucial part of Russia's critical national infrastructure - more bang per buck.

So, although Ukraine desperately needs to stop Russia from breaking through its frontlines, we can expect to see Ukraine continue to target energy infrastructure as part of a broader strategy in its war with Russia.

We now have more details regarding the freshly expelled Russian defence attache we reported on in our 1.10pm post. 

The attache accused by the Home Office of being an undeclared military intelligence officer spying for the Kremlin is Colonel Maxim Elovik. 

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