SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis has applications to both personal and organizational situations. It is extremely useful for strategic decision-making, if properly and thoughtfully applied, with or without “flipcharts” (Goetsch & Davis, 2021, p. 47).
SWOT analysis requires an individual or company to take stock of their internal strengths and weaknesses while observing the environment for both opportunities and threats. In a personal context, it allows one to identify leadership and organizational strengths as well as observing a relative lack of those strengths among one’s peers. This then is an opportunity for advancement.
In a different (non-competitive) situation, an individual may create a position to fulfill a need that no one even knew existed!
In a corporate context, SWOT analysis not only requires knowledge of the company’s strengths and weaknesses, but also the strengths and weaknesses of competitors. (Why oh why don’t managers maintain their employees’ resumes on hand?)
The gap between the strengths of one’s own company and a competitor’s strengths can be translated into a business opportunity. The best opportunity is when your own strengths fill in the weaknesses of the competitor. Of course, one’s own company’s weaknesses is a vulnerability that competitors will use to the utmost, if they are worthy competitors!
Something that is often overlooked about SWOT analysis, that Swart (2022) notes, is that it is an iterative process is that strengths, when acted upon, create new opportunities. This holds for both individuals and corporations. This idea is echoed in a quote attributed to Sun Tzu: “opportunities multiply as they are seized” (Sun Tzu, n/d). Taking initiative and actively pursuing possibilities are crucial for success in both personal and professional contexts.
References
Goetsch, D. L. & Davis, S. B. (2021). Quality management for organizational excellence: Introduction to total quality (9th ed.). Pearson.
Sun Tzu. (approx.. 5th century BC). The Art of War. https://gutenberg.org/cache/epub/66706/pg66706.txt
Swart, J. (2022, December 26). The Personal SWOT Analysis as a Coaching Tool. https://doi.org/10.13140/RG.2.2.26485.04322
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