SWOT Analysis: Explanation, How to Perform, Example

This guide is all about SWOT: Explanation, How to do SWOT Analysis, Why it is important, and Examples of SWOT Analysis.

While introducing ourselves, other than name and hobby what else do we include? May be what are we a good way, what we want to do but we are afraid for some reason that might undermine our ability to do it. If given chance, under any circumstance, what we would have wanted to do or maybe something which we are not that good at. Though we don’t want others to know our drawbacks, still it is no harm in knowing- who we are.

What is SWOT Analysis?

To understand who we are on the basis of our potentiality or ability, it is better to make a rough of our strengths and weakness and every other thing. This will not only help in understanding our self but will also help in setting and planning goals for the future for our further development.

Similarly, when we are talking about any organization, the strategic technique or method to understand and identify their strength, weakness, threat, and opportunity. This technical analysis is known as SWOT Analysis.

SWOT Analysis:

SWOT is the abbreviated form of Strength, Weakness, Opportunity, and Threat. Out of these 4 points, Strength and Weakness are a part of the internal environment, and Opportunities and Threats are part of the external environment.


This points out the uniqueness of that respective organization. Why it is more famous than other organizations. Determining the strength of the organization is an important and crucial factor because it gives the company a positive effect and also helps to build the confidence of the business. Strength should be something that the organization is good at and also depending on which the organization can take the required decision.

Example: working condition, location factor, uniqueness, proper and effective management and etc.


This talks about the aspect which the organization is not good at. Basically it includes the factors which undermine its potentiality of the business organization to perform up to their actual capacity. While pointing out the weakness of the business, it should be done with full honesty, as it will help in overcoming them so that in near future these particular points don’t cause any harm to the business. While determining the weaknesses we have to consider where the organization fails to face the competitors, where more improvements can be made.

Example: Dependency, cost of operating the business.


Includes few probable situations which organizations, if takes, then it might turn out to become a competitive advantage for the organization. To recognize a good opportunity, enough knowledge outside the business is required. As opportunities are not created within the internal environment of the organization. Points should be considered on how to change the strengths into opportunities.

Example: adapting to the new changes, effective promotion, and marketing.


Refers to any component or factor which might hurt or destroy or might cause harm to the potentiality of the business. While determining the threats every single cause which might have a negative impact on the organization should be considered. Looking after what the competitors are working, what changes they are incorporating should not be neglected. Every obstacle should be considered and should be worked upon so that this threat is not able to cause any harm.

Example: high price, bad quality product, poor relation with the customer.

How To Do SWOT Analysis?

SWOT analysis is done in a matrix form where a 2×2 grid is considered. Each box formed by the grid represents each element of SWOT. Collectively brainstorming is needed, and when any point about the organization comes up that point shall be written down into their representing box. Every internal and external factor should be considered when making this analysis.

Why is SWOT Analysis Important?

Like any other business approach, SWOT analysis also has an important role to play for better business expansion.

Important points have been discussed below:

  1. Helps in understanding the current position and also future possibilities of the business by critically analyzing every point about the business.
  2. Even minute details about the business go unnoticed and thus, understanding even small problems and coming up with a better solution to it becomes easier.
  3. It helps us by understanding the condition of the existing competitions and how tough the competitors are.
  4. Helps in making proper planning and strategy formation.

Also Read: Brand Image: Explanation, Types, Importance, Example


To have a proper understanding of the SWOT analysis, it is better to relate to reality. For this let us take Samsung as an example.

With its headquarter in Seoul, Samsung is a South Korean based multinational conglomerate. It serves worldwide, especially known for its electronic products, though they have considered diversifying their business into various sectors.

Here, in this example, SWOT analysis of Samsung has been done considering a few points.

SWOT Analysis of Samsung:


Strong manufacturing and marketing facility with a competitive Research and Development facility.


Tough competition with few Chinese smartphone products and continuous controversial comparison with Apple products


Increasing demand for more of its products causing the market to expand.


Samsung uses Google Android Operating System, this is not as popular and wanted as Apple’s IOS.

Sohini Mazumder
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Sohini Mazumder

Sohini Mazumder, from Kolkata, currently doing undergrads in Economics. She is more enthusiastic about learning new things.

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