ABSTRACT
Strengths, weaknesses, opportunities and threats (SWOT) Analysis emanated from the Stanford Research Institute in the mid-1960s. SWOT Analysis necessitates an understanding both of the organisation’s environment and of its resource capabilities. SWOT is purely a ‘snap shot’ in time of the status quo. Some critics have argued that SWOT is not really an analytical tool and that it is purely a framework to structure facts and data concerning the current situation. SWOT Analysis is normally used in conjunction with a range of other analytical tools as part of an overall strategic decision-making process. It is often used to evaluate competitors; however, it can also be used for self-development purposes. Helps to highlight potential threats from competitors or the external environment early, so as to avoid or reduce their effect.
