Editing SWOT analysis (section)

{{short description|Business planning and analysis technique}}
{{Other uses|SWOT (disambiguation){{!}}SWOT}}
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[[File:SWOT en.svg|thumb|The four components of SWOT in a 2&nbsp;×&nbsp;2 matrix]]
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In [[strategic planning]] and [[strategic management]], '''SWOT analysis''' (also known as the '''SWOT matrix''', '''TOWS''', '''WOTS''', '''{{abbr|WOTS-UP|Weaknesses, Opportunities, Threats and Strengths Underlying Planning}}''', and [[Situation analysis|situational analysis]])<ref>{{cite journal |last1=Nutt |first1=Paul C. |last2=Backoff |first2=Robert W. |date=Summer 1993 |title=Transforming public organizations with strategic management and strategic leadership |journal=[[Journal of Management]] |volume=19 |issue=2 |pages=299–347 (316) |doi=10.1016/0149-2063(93)90056-S |quote=The SWOTs perspective is often used to pose questions for strategic management (e.g., Ansoff, 1980). Steiner's (1979) 'WOTS' approach, Rowe, Mason and Dickel's (1982) WOTS-UP, and Delbecq's (1989) 'TOWS' framework identify three of many derivations.}} See also: {{harvnb|Weihrich|1982|p=54}}: "For convenience, the matrix that will be introduced is called TOWS, or situational analysis"; {{harvnb|Sevier|2001|p=46}}.</ref> is a [[decision-making]] technique that identifies the strengths, weaknesses, opportunities, and threats of an [[organization]] or project.

SWOT analysis evaluates the strategic position of organizations and is often used in the preliminary stages of decision-making processes<ref>{{Cite book |last=Silva |first=Carlos Nunes |date=2005 |chapter=SWOT analysis |title=Encyclopedia of the city |editor-last=Caves |editor-first=Roger W. |location=Abingdon; New York |publisher=[[Routledge]] |pages=[https://archive.org/details/encyclopediaofci0000unse_o0h4/page/444 444–445] |isbn=978-0415862875 |oclc=55948158 |doi=10.4324/9780203484234 |chapter-url=https://archive.org/details/encyclopediaofci0000unse_o0h4/page/444 |chapter-url-access=registration}}</ref> to identify internal and external factors that are favorable and unfavorable to achieving goals. Users of a SWOT analysis ask questions to generate answers for each category and identify [[competitive advantage]]s.

SWOT has been described as a "tried-and-true" tool of strategic analysis,<ref>Examples of the "tried-and-true" trope:
*{{cite book |last=Sevier |first=Robert A. |date=2001 |chapter=Not SWOT, but OTSW |title=Thinking outside the box: some (fairly) radical thoughts on how colleges and universities should think, act, and communicate in a very busy marketplace |location=Hiawatha, Iowa |publisher=Strategy Pub. |page=[https://archive.org/details/thinkingoutsideb0000sevi/page/46 46] |isbn=0971059705 |oclc=48165005 |chapter-url=https://archive.org/details/thinkingoutsideb0000sevi/page/46 |chapter-url-access=registration |quote=Few people realize that there is an inherent danger in conducting a situational analysis using the old tried and true SWOT. The danger is this: When you look inside the organization first, you create a set of glasses through which you will look at the world. In doing so, you are highly likely to overlook significant opportunities and threats.}} See also {{harvnb|Minsky|Aron|2021}}.
*{{cite book |last=Staples |first=Lee |date=2004 |title=Roots to power: a manual for grassroots organizing |edition=2nd |location=Westport, Conn. |publisher=[[Praeger Publishing]] |page=136 |isbn=0275969975 |oclc=56085984 |quote=The tried and true SWOT Assessment examines positive and negative factors as does a Force Field Analysis, but a SWOT has a particular focus on the upsides and downsides for the action group itself.}}
*{{cite book |last1=Lambert |first1=Ron |last2=Parker |first2=Tom |date=2006 |title=Is that your hand in my pocket?: the sales professional's guide to negotiating |location=Nashville |publisher=Nelson Business |page=[https://archive.org/details/isthatyourhandin00lamb/page/132 132] |isbn=0785218777 |oclc=63125604 |url=https://archive.org/details/isthatyourhandin00lamb/page/132 |url-access=registration |quote=Before you as a salesperson can develop a strategy, you have to assess the situation. We recommend the tried-and-true SWOT analysis. You start by taking a look at your Strengths and Weaknesses, your Opportunities and any Threats. Then you do exactly the same thing from the perspective of each of your competitors.}}
</ref> but has also been criticized for limitations such as the static nature of the analysis, the influence of personal biases in identifying key factors, and the overemphasis on external factors, leading to reactive strategies. Consequently, alternative approaches to SWOT have been developed over the years.