3.2 SWOT Analysis

Evaluates both internal Strengths and Weaknesses alongside external Opportunities and Threats. Useful to capitalise on strengths, address weaknesses, exploit emerging opportunities, and mitigate risks. Launch on platform.

What is it?

SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a practical, widely used strategic planning tool. Developed by Albert Humphrey in the 1960s at Stanford Research Institute, SWOT helps leaders and teams systematically evaluate internal capabilities and external environments, enabling clearer decision-making and strategic direction.

Why is it useful?

Applying SWOT analysis practically helps you to:

Clarify internal strengths and weaknesses: Identify clearly where your organisation excels and where it needs improvement. Spot external opportunities and threats: Recognise external factors you can leverage or must manage proactively. Set clear strategic priorities: Align decisions and resources to play to your strengths and mitigate your vulnerabilities. Build awareness and strategic focus: Ensure teams share a common understanding of key internal and external influences affecting success.

How does it work?

1

Strengths

Characteristics: Internal attributes and resources that give your organisation a competitive advantage. Approach: Build, maintain, and leverage these strengths actively in your strategy. Example: Strong brand reputation, skilled workforce, proprietary technologies, efficient operations.

2

Weaknesses

Characteristics: Internal limitations or deficiencies hindering performance or growth. Approach: Identify clearly and invest strategically to minimise, fix, or manage weaknesses. Example: Inefficient processes, outdated technology, skill gaps in teams, financial limitations.

3

Opportunities

Characteristics: External factors or situations your organisation can capitalise on to achieve greater success. Approach: Proactively seize opportunities through targeted investment, innovation, or expansion. Example: Emerging markets, technological advances, changing customer preferences, regulatory changes favorable to your business.

4

Threats

Characteristics: External risks or challenges that could negatively impact your organisation's performance. Approach: Anticipate, prepare for, and manage these threats strategically to reduce potential harm. Example: Competitor innovations, economic downturns, disruptive technologies, regulatory risks.

Turning SWOT into Action

The key to SWOT’s effectiveness is action. After analysis, prioritise and integrate findings into your strategic planning:

• Maximise strengths: Invest more in your competitive advantages.

• Address weaknesses: Improve processes, fill gaps, or adjust strategies.

• Pursue opportunities: Strategically select external opportunities aligned with your strengths.

• Mitigate threats: Develop contingency plans and risk management strategies.