---
title: "SWOT analysis"
source: "https://systems-analysis.info/eng/SWOT_analysis"
wiki: "systems-analysis.info/eng"
article: "SWOT_analysis"
language: "en"
categories:
  - "Category:Analysis methods"
  - "Category:English"
  - "Category:Science"
  - "Category:Strategic management"
revision_id: 336
wiki_created_at: 2026-09-06T22:22:16Z
wiki_modified_at: 2026-09-06T22:22:16Z
downloaded_at: 2026-09-07T22:22:47Z
---

# SWOT analysis

**SWOT analysis** (also the **SWOT method**) is a strategic planning method that involves identifying and classifying an organization's internal and external environmental factors into four categories: **S**trengths, **W**eaknesses, **O**pportunities, and **T**hreats<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)</sup>. Strengths and weaknesses are **internal factors** that the organization can control, while opportunities and threats are **external factors** that are beyond its direct influence<sup>[\[2\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-statpearls-2)</sup>.

The method provides a structured "snapshot" of the current situation, allowing a company to align its internal resources with market conditions and develop a strategy for growth based on this assessment<sup>[\[2\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-statpearls-2)</sup>. SWOT analysis is one of the most common tools in strategic management due to its simplicity, versatility, and clarity<sup>[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.

## History

The conceptual foundations of SWOT analysis began to form in the 1950s and 1960s. One of its precursors is considered to be the **SOFT** approach (*Satisfactory, Opportunity, Fault, Threat*), developed in the 1960s at the Stanford Research Institute (SRI) under the leadership of management consultant Albert Humphrey<sup>[\[4\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-puyt2023-4)</sup>. The project aimed to identify the reasons for corporate planning failures in Fortune 500 companies. The acronym was later changed to SWOT, where *Satisfactory* was replaced with *Strengths*, and *Fault* was replaced with *Weaknesses*<sup>[\[4\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-puyt2023-4)</sup>.

Meanwhile, in 1963, Harvard Business School professor Kenneth Andrews first publicly introduced the SWOT acronym at a business policy conference<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>. In 1965, a group of Harvard professors (Learned, Christensen, Andrews, and Guth) incorporated this approach into the foundation of corporate strategy development, known as the **LCAG** model<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>. By the 1970s, SWOT analysis had become widely used in strategic planning and was established as one of the standard tools of business analysis<sup>[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.

## Elements of SWOT Analysis

The analysis is based on dividing factors into two main groups: internal (strengths and weaknesses) and external (opportunities and threats).

- **Strengths** — Internal characteristics and resources of the organization that provide it with a competitive advantage. Examples: unique technologies, skilled personnel, a strong brand, a loyal customer base, financial stability<sup>[\[2\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-statpearls-2)</sup>.
- **Weaknesses** — Internal factors that limit the organization or place it at a disadvantage compared to competitors. Examples: outdated equipment, lack of resources, inefficient processes, a weak reputation<sup>[\[2\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-statpearls-2)[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.
- **Opportunities** — Favorable external circumstances that the organization can use for its growth and development. Examples: growth of new markets, technological innovations, favorable legislative changes, new demographic trends<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)</sup>.
- **Threats** — External factors that can negatively impact the organization's activities. Examples: the emergence of strong competitors, an economic crisis, unfavorable regulatory changes, shifts in consumer preferences<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)</sup>.

## SWOT Matrix and Strategy Generation (TOWS Analysis)

The results of the analysis are traditionally presented in a **SWOT matrix**—a 2×2 table where the identified factors are listed in the cells<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)</sup>. However, the matrix itself is merely a descriptive tool. To move from analysis to strategy development, the **TOWS matrix**, proposed by Heinz Weihrich, is used. This approach involves systematically matching internal and external factors to formulate four types of strategies<sup>[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>:

- **SO (Strengths-Opportunities)** or "Maxi-Maxi" — strategies that use strengths to maximize external opportunities. This is the most desirable offensive strategy.
- **ST (Strengths-Threats)** or "Maxi-Mini" — strategies that use strengths to minimize or neutralize external threats.
- **WO (Weaknesses-Opportunities)** or "Mini-Maxi" — strategies aimed at overcoming weaknesses by leveraging external opportunities.
- **WT (Weaknesses-Threats)** or "Mini-Mini" — strategies aimed at minimizing both weaknesses and external threats. This is a defensive strategy often employed in crisis situations.

## Advantages and Disadvantages

### Advantages

- **Simplicity and Clarity**: The method does not require specialized knowledge or complex calculations, and the results are easily visualized in a matrix, which simplifies understanding<sup>[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.
- **Versatility**: SWOT analysis can be applied to a wide range of subjects, from large corporations and government agencies to small businesses, individual projects, and even personal career planning<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)[\[2\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-statpearls-2)</sup>.
- **Structured Approach**: The method helps organize large amounts of information about the internal and external environment, creating a foundation for strategic dialogue<sup>[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.
- **Fosters Teamwork**: Conducting the analysis in a group encourages the exchange of opinions among specialists from different fields and helps form a shared vision of the situation.

### Disadvantages and Criticism

- **Subjectivity**: The results of the analysis are highly dependent on the knowledge, experience, and biases of the team conducting it. The assessment of factors is often qualitative rather than quantitative<sup>[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.
- **Static Nature**: SWOT analysis provides a "snapshot" of the situation at a specific point in time and does not reflect dynamic changes. In a rapidly changing environment, its results can quickly become outdated<sup>[\[2\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-statpearls-2)</sup>.
- **Lack of Prioritization**: The classic method does not include a way to rank factors by their importance. Long lists can lead to "analysis paralysis," making it difficult to determine where to focus<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.
- **Superficiality**: Due to its simplicity, the method can lead to superficial conclusions if not supported by more in-depth research and concrete data<sup>[\[1\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-wiki-en-1)</sup>.

## Relationship with Other Tools

SWOT analysis is rarely used in isolation and is often supplemented by other strategic analysis methods to obtain a more complete picture:

- **[PEST(EL) analysis](https://systems-analysis.info/eng/PEST_analysis "PEST analysis")**: Used for a more in-depth examination of the macro-environment (political, economic, social, technological factors), which helps to detail the "Opportunities" and "Threats" sections<sup>[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.
- **Porter's Five Forces Analysis**: Helps to analyze the competitive environment in detail (threats from new entrants, suppliers, buyers, substitute products), which also clarifies the external factors of SWOT<sup>[\[2\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-statpearls-2)</sup>.
- **VRIO Analysis**: Applied for a deeper assessment of a company's internal resources and competencies in terms of their value, rarity, imitability, and organization, allowing for a more objective evaluation of its "Strengths"<sup>[\[3\]](https://systems-analysis.info/eng/SWOT_analysis#cite_note-hse-2017-3)</sup>.

## See also

- [PEST analysis](https://systems-analysis.info/eng/PEST_analysis "PEST analysis")
- [PESTLE analysis](https://systems-analysis.info/eng/PESTLE_analysis "PESTLE analysis")
- [Cost–benefit analysis (CBA)](https://systems-analysis.info/eng/Cost%E2%80%93benefit_analysis_(CBA) "Cost–benefit analysis (CBA)")

## References

1.  <span id="cite_note-wiki-en-1">↑ <sup>[1.0](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-0)</sup> <sup>[1.1](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-1)</sup> <sup>[1.2](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-2)</sup> <sup>[1.3](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-3)</sup> <sup>[1.4](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-4)</sup> <sup>[1.5](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-5)</sup> <sup>[1.6](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-6)</sup> <sup>[1.7](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-7)</sup> <sup>[1.8](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-wiki-en_1-8)</sup> "SWOT analysis - Wikipedia". *en.wikipedia.org*. <a href="https://en.wikipedia.org/wiki/SWOT_analysis" class="external autonumber" rel="nofollow">[1]</a></span>
2.  <span id="cite_note-statpearls-2">↑ <sup>[2.0](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-statpearls_2-0)</sup> <sup>[2.1](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-statpearls_2-1)</sup> <sup>[2.2](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-statpearls_2-2)</sup> <sup>[2.3](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-statpearls_2-3)</sup> <sup>[2.4](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-statpearls_2-4)</sup> <sup>[2.5](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-statpearls_2-5)</sup> <sup>[2.6](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-statpearls_2-6)</sup> "SWOT Analysis - StatPearls - NCBI Bookshelf". *National Center for Biotechnology Information*. <a href="https://www.ncbi.nlm.nih.gov/books/NBK537302/" class="external autonumber" rel="nofollow">[2]</a></span>
3.  <span id="cite_note-hse-2017-3">↑ <sup>[3.00](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-0)</sup> <sup>[3.01](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-1)</sup> <sup>[3.02](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-2)</sup> <sup>[3.03](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-3)</sup> <sup>[3.04](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-4)</sup> <sup>[3.05](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-5)</sup> <sup>[3.06](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-6)</sup> <sup>[3.07](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-7)</sup> <sup>[3.08](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-8)</sup> <sup>[3.09](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-9)</sup> <sup>[3.10](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-10)</sup> <sup>[3.11](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-hse-2017_3-11)</sup> Gürel, E., & Tat, M. (2017). "SWOT Analysis: A Theoretical Review". *Journal of International Social Research*, 10(51). <a href="https://www.researchgate.net/publication/319367788_SWOT_Analysis_A_Theoretical_Review" class="external autonumber" rel="nofollow">[3]</a></span>
4.  <span id="cite_note-puyt2023-4">↑ <sup>[4.0](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-puyt2023_4-0)</sup> <sup>[4.1](https://systems-analysis.info/eng/SWOT_analysis#cite_ref-puyt2023_4-1)</sup> Puyt, R. W., Lie, F. B., & Wilderom, C. P. M. (2023). "The origins of SWOT analysis". *Long Range Planning*, 56(3), 102–115.</span>