Business Analysis Frameworks: SWOT, PESTLE, Five Forces

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis highlights internal factors (strengths and weaknesses) and external factors (opportunities and threats) and how they are likely to impact a company, a product or an industry. SWOT analyses are available for individual companies as well as entire industries (or sectors).

Strengths are competitive advantages that allow a company to outperform competitors.

• Examples of strengths: financial resources, up to date technology, qualified talent, good reputation, customer service and more.

Weaknesses are competitive disadvantages that often lead to underperformance compared to industry leaders.

• Examples of weaknesses: high operating costs, high turnover and disengaged employees, bad reputation, resistance to change, location, lack of partnerships and more.

Opportunities are favorable external conditions.

• Examples of opportunities: growing economy, technological advances, regulations and legal changes, political stability, cost of materials and more.

Threats are unfavorable external conditions.

• Examples of threats: change in competition including new competitors, economic and social instability, natural disasters, technological change and more.

For a list of additional examples for each section, please see 170 Examples for a Business SWOT from Simplicable (January 2023).