SWOT Analysis

A SWOT Analysis helps to identify the current state of a company or project to derive strategic measures from it. Both internal and external factors are considered, namely:

• Strengths: Internal characteristics that give the company or project a competitive advantage, e.g. qualified employees or innovative products.
• Weaknesses: Internal characteristics that put the company or project at a competitive disadvantage, e.g. financial straits or a lack of digitalization.
• Opportunities: External factors that bring advantages to the company or project, e.g. new markets or technological developments.
• Threats: External factors that harm the company or project, e.g. new competitors or a complex legal landscape.

The relevant information is collected via user and market research, employee surveys or company reports. Once the four areas have been evaluated, the aim is to define a strategy that builds on the respective opportunities and strengths, and minimizes weaknesses and risks as far as possible.

Nice to know:

A SWOT analysis is flexible in its application, since it works in a wide variety of contexts and for companies of any size and industry. It makes sense to update the analysis at least once a year to ensure it reflects the current state and market conditions. Integrating it in the regular strategic planning process helps in making well-informed decisions throughout.