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SWOT analysis
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== Use == SWOT analysis has been used at different [[Level of analysis|levels of analysis]], including [[business]]es, [[non-profit organizations]], [[Government agency|governmental units]], and [[Person|individuals]].<ref name=SWOTlimits/> It is often used alongside other frameworks, such as [[PEST analysis|PEST]], as a basis for the analysis of internal and environmental factors.<ref>{{cite book |last=Armstrong |first=Michael |url=https://archive.org/details/handbookofhumanr0000arms/page/51 |title=A handbook of human resource management practice |date=2001 |publisher=[[Kogan Page]] |isbn=9780749433932 |edition=8th |location=London |page=[https://archive.org/details/handbookofhumanr0000arms/page/51 51] |oclc=59549399 |url-access=registration}}</ref> SWOT analysis may also be used in pre-crisis planning, preventive [[crisis management]], and [[viability study]] recommendation construction.<ref>{{cite journal |last=Welch |first=James Stewart Jr. |title=Visioning strategy through the "Johari window": discovering critical "unknowns" in a rapidly evolving context |journal=Strategy and Leadership |date=July 2023 |doi=10.1108/SL-05-2023-0056 |url=https://doi.org/10.1108/SL-05-2023-0056|url-access=subscription }}</ref> === Strategic planning === SWOT analysis can be used to build organizational or personal strategy. Steps necessary to execute strategy-oriented analysis involve identifying internal and external factors, selecting and evaluating the most important factors, and identifying relationships between internal and external features.<ref name=Pickton1998>{{cite journal |last1=Pickton |first1=David W. |last2=Wright |first2=Sheila |date=March 1998 |title=What's swot in strategic analysis? |journal=Strategic Change |volume=7 |issue=2 |pages=101–109 |doi=10.1002/(SICI)1099-1697(199803/04)7:2<101::AID-JSC332>3.0.CO;2-6}}</ref> For instance, strong relations between strengths and opportunities can suggest good conditions in the company and allow using an {{em|aggressive}} strategy. On the other hand, strong interactions between weaknesses and threats could be analyzed as a warning to use a {{em|defensive}} strategy.<ref>{{cite journal |last1=Osita |first1=Christian |last2=Onyebuchi |first2=Idoko |last3=Justina |first3=Nzekwe |date=31 January 2014 |title=Organization's stability and productivity: the role of SWOT analysis |url=http://journalijiar.com/uploads/2014-10-02_231409_710.pdf |journal=International Journal of Innovative and Applied Research |volume=2 |issue=9 |pages=23–32 |access-date=17 March 2016}}</ref> One form of SWOT analysis combines each of the four components with another to examine four distinct strategies:<ref name="Weihrich1982" /> * WT strategy (mini–mini): Faced with external threats and internal weaknesses, how to minimize both weaknesses and threats? * WO strategy (mini–maxi): Faced with external opportunities and internal weaknesses, how to minimize weaknesses and maximize opportunities? * ST strategy (maxi–mini): Faced with internal strengths and external threats, how to maximize strengths and minimize threats? * SO strategy (maxi–maxi): Faced with external opportunities and internal strengths, how to maximize both opportunities and strengths? ==== Matching and converting ==== A SWOT analysis can be used to generate matching and converting strategies.<ref name=Piercy1989>{{cite journal |last1=Piercy |first1=Nigel |last2=Giles |first2=William |date=May 1989 |title=Making SWOT analysis work |journal=Marketing Intelligence & Planning |volume=7 |issue=5/6 |pages=5–7 |doi=10.1108/EUM0000000001042}}</ref> Matching refers to seeking [[competitive advantage]] by matching strengths to opportunities. This strategy ensures that an organization leverages its core competencies, resources, and capabilities to capitalize on favorable market conditions, emerging trends, or unmet customer needs. Conversion refers to converting weaknesses or threats into strengths or opportunities. An example of a conversion strategy is to buy off a threat through collaboration or merger.<ref name=Piercy1989 /> === Marketing === {{Main|Marketing management}} {{See also|Marketing mix}} In [[competitor analysis]], marketers can use SWOT analysis to detail and profile the competitive strengths and weaknesses of each competitor in the market. This process may involve analysing competitors' cost structures, sources of profits, resources and competencies, competitive positioning, [[product differentiation]], degree of [[vertical integration]], historical responses to industry developments, among other factors. Relevant [[marketing research]] methods may include: * [[Qualitative marketing research]] such as focus groups * [[Quantitative marketing research]] such as statistical surveys * Experimental techniques such as test markets * Observational techniques such as ethnographic (on-site) observation Marketing managers may also design and oversee various [[Market environment|environmental scanning]] and [[competitive intelligence]] processes to help identify trends and inform the company's marketing analysis. {| class="wikitable" |+SWOT analysis of the market position of a small management consultancy with a specialism in human resource management<ref name="Armstrong1990">{{cite book |last=Armstrong |first=Michael |url=https://archive.org/details/managementproces0000arms |title=Management processes and functions |date=1990 |publisher=Institute of Personnel Management |isbn=0-85292-438-0 |series=Management studies series |location=London |oclc=21301791 |url-access=registration}}</ref> |- ! Strengths ! width=25% | Weaknesses ! width=25% | Opportunities ! width=25% | Threats |- valign=top | Reputation in marketplace | Shortage of consultants at operating level rather than partner level | Well established position with a well-defined market niche | Large consultancies operating at a minor level |- valign=top | Expertise at partner level in HRM consultancy | Unable to deal with multidisciplinary assignments because of size or lack of ability | Identified market for consultancy in areas other than HRM | Other small consultancies looking to invade the marketplace |- valign=top |} === In community organizations === [[File:SWOT Analysis ssw 1.png|thumb|An example of a SWOT template that includes cells for strategies, not only assessments]] [[File:SWOT Analysis ssw 2.png|thumb|A simple SWOT template]] Although the SWOT analysis was originally designed for business and industries, it has been used in [[Non-governmental organization|non-governmental organisations]] as a tool for identifying external and internal support to combat internal and external opposition for successful implementation of [[social services]] and [[social change]] efforts.<ref name="CTB" /> Understanding particular communities can come from public forums, listening campaigns, and informational interviews and other data collection.<ref name="CTB" /> SWOT analysis provides direction to the next stages of the [[Change management|change process]].<ref name="Birkenmaier2001">{{cite book |last1=Birkenmaier |first1=Julie |title=The practice of generalist social work |last2=Berg-Weger |first2=Marla |date=2017 |publisher=[[Routledge]] |isbn=9781138057852 |edition=4th |location=New York |pages=552–577 |chapter=Organizational engagement, assessment, and planning |oclc=971892636}}</ref> It has been used by community organizers and community members to further social justice in the context of social work practice,<ref name="Birkenmaier2001" /> and can be applied directly to communities served by a specific nonprofit or community organization.<ref name="social work">{{cite journal |last1=Westhues |first1=Anne |last2=Lafrance |first2=Jean |last3=Schmidt |first3=Glen |date=February 2001 |title=A SWOT analysis of social work education in Canada |journal=Social Work Education: The International Journal |volume=20 |issue=1 |pages=35–56|doi=10.1080/02615470020028364 |s2cid=143892190 |url=https://www.researchgate.net/publication/248994170}}</ref>
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