How to Do a SWOT Analysis
A SWOT analysis is only useful if it leads to a decision. Anyone can fill four boxes; the skill is separating internal from external factors and turning the grid into strategy.
What SWOT is
SWOT maps an organisation’s Strengths, Weaknesses, Opportunities, and Threats. The distinction that trips people up: strengths and weaknesses are internal (things the organisation controls — its people, brand, costs), while opportunities and threats are external (things in the market it doesn’t control — trends, competitors, regulation).
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Internal vs external at a glance
| Helpful | Harmful | |
|---|---|---|
| Internal | Strengths | Weaknesses |
| External | Opportunities | Threats |
How to build one
- Define the objective first — a SWOT for “entering a new market” looks different from one for “cutting costs.”
- Gather evidence, don’t guess: financials, customer feedback, competitor moves, market data.
- List factors that are specific and material. “Good staff” is weak; “specialist engineers competitors can’t easily hire” is a strength.
- Sort each factor honestly into internal (S/W) or external (O/T).
- Prioritise — a few decisive factors beat a long, flat list.
Turn SWOT into strategy (TOWS)
The grid is a starting point, not the answer. Pair the quadrants to generate actions: use strengths to seize opportunities (S-O), use strengths to defend against threats (S-T), shore up weaknesses that block opportunities (W-O), and minimise weaknesses exposed to threats (W-T). This is what moves a SWOT from a description to a recommendation.
The mark-winning move
Most students stop at the four boxes. Adding even one or two TOWS pairings shows you can convert analysis into decisions.
Common mistakes
- Mixing internal and external — e.g. listing “new competitor” as a weakness.
- Vague, unranked lists with no evidence.
- Stopping at the grid without drawing any conclusion.
Quick checklist
- Is every factor correctly internal or external?
- Is each point specific and backed by evidence?
- Have you prioritised the decisive factors?
- Did you translate the grid into at least one strategic action?