swot analysis case study

3 Great SWOT Analysis Examples with Real Companies

Whether you want to assess the current position of your business, expand to new markets, or simply develop a new strategy, a SWOT analysis is probably one of the first steps that you will probably make in that direction. And, if it wasn’t on your radar, it should be! Today, we will see some of the best SWOT analysis examples to get you inspired, and help you understand how to do use it effectively for optimum results.

If you are not familiar with the concept, a SWOT analysis is a key technique for assessing some of the most important aspects of your business. In fact, its name comes from the abbreviation of these aspects:

Strengths – internal

These are the strengths of your company compared to other industry competitors. For example, what is it that you do particularly well that others don’t? What is your unique selling proposition , or that service or aspect of your business that differentiates you from the rest?

Do you have a particular competitive advantage over your biggest competitors? This could be technology, an easy access to primary resources, more product personalization, and so on.

Assessing your strengths will help you identify your current position on the market. But also, give you insights on those aspects that represent a clear advantage for your business, so you can leverage them even more.

Weaknesses – internal

Weaknesses, as you might have guessed, are the exact opposite of your organization’s strength. In other words, what do your competitors do better than you ? In what aspect do they have a clear advantage over you?

Is it something that you offer but can improve, or is it a service or an aspect that you lack altogether? For example, your customer service might be unsatisfactory. Or maybe, a competitor has a particular technological feature that your product don’t offer at all.

We will see more of this with practical cases in our section of SWOT Analysis examples.

Opportunities – external

The next aspect of the SWOT analysis is evaluating the positive trends that can open a new opportunity for your business. They usually arise from the outside of your organization , such as industry changes, important movements on the competitors’ landscape, or even a change in the laws applicable to your industry.

Analyzing other factors, such as VUCA – the leadership theory on volatility, uncertainty, complexity and ambiguity, can also reveal new opportunities for your business. To identify them, you will have to look around you from an external perspective.

Can you spot any current trends that could represent an opportunity for your business? For example, the COVID-19 pandemic made companies like Nike and Adidas sell protective masks on their website as a part of their product portfolio. And many new businesses opened to profit from the changes.

Threats – external

Threats are another aspect that is external to your business, but can impact you negatively if you aren’t paying attention. Some examples include supply chain problems, shift in market requirements, changes to current laws and regulations, and so on.

Of course, threats are not always easy to identify. You will have to be proactively looking for them – if they are obvious, it is probably too late. What is the competition doing? How is the current technology evolving?

Are you noticing a change in user behavior regarding the consumption of your particular product? All these questions can help you get a better understanding of the market , and what could potentially be harmful to you.

And now, let’s get right to our SWOT analysis examples!

Disclaimer: These examples are merely my own analysis and interpretation of the information that is publicly available online for these companies. I don´t work at any of these companies, and I do not pretend that I actually know what is going on behind the scenes for any of them. It is just a practical exercise with real companies with the purpose of giving you a clear idea of how to perform a SWOT analysis.

1. The Coca Cola Company

First on our list of SWOT analysis examples is this one from The Coca Cola Company.

swot analysis examples - the coca cola company

SWOT Analysis examples #1: The Coca Cola Company

Let’s discuss it in detail.

Variety of products – one of the biggest strengths that The Coca Cola Company has is their incredible variety of products across different categories. In fact, there are over 500 brands across 200 companies owned by Coca Cola. This not only gives them a higher control on the market, but also more diversified expertise, and less overall competition.
Market share – with a market share of 43% in the soft drink industry, they have a very solid positioning compared to many other competitors. Which also means that it would be extremely difficult to compete with Coca Cola and its almost unlimited resources.
Brand recognition – Coca Cola is one of the most recognized brands in the world, which gives them a huge advantage in front of their competitors. It also means that any new product or brand they invest in will gain visibility almost immediately.
Secret recipes – and last but not least, the company prides itself in having a secret recipe for its flagship product – the Coca Cola. This means that this product will be difficult to replicate by competitors.

Health trends – one of the biggest weaknesses that the company has is its unability to adapt to current health trends. As people are becoming more and more conscious about the unhealthy food and the amount of sugar they are consuming, soft and sugary drinks are slowly getting substituted by healthier options.
Sugar substitute – another health-related weakness for the company involves the difficulty of improving their quality of their product without affecting its famous taste. Coca Cola has been actively looking for healthy sugar substitutes for years with no success.
Current positioning – the current positioning of Coca Cola and its soft drinks is both a blessing and a curse. A blessing, because everyone knows the brand and the product it offers. This kind of brand recognition is something that every company dreams of.

However, this weakness comes with the fact that Coca Cola already has a certain reputation established for itself that is difficult to change. And, considering its sugary drinks with mysterious and secret ingredients, it is certainly not the most positive one.

Opportunities

Health trends – if The Coca Cola Company closely monitors and responds adequately to current health trends, they have a huge opportunitiy to increase their market share. And get an even bigger chunk of the soft drink industry. Especially if they manage to find a healthy substitute for sugar.
Few major competitors – considering the dominance of the brand and only a few major competitors for these particular types of products, Coca Cola can quickly introduce new products with the right Marketing strategy.
Healthier alternatives – although the company is quite dominant when it comes to soft drinks, a lot of other healthier alternatives are arising on the market. Flavoured waters, smoothies, organic drinks, green juices, and so on, are just some of the alternatives that people are starting to prefer as they get more conscious with their health.
Negative press and media coverage – although The Coca Cola Company is known for its brilliant Marketing strategies and its incredible brand recognition, it also gets a lot of negative coverage for being unhealthy. In-depth research, Youtube videos, and even articles from reputable sources such as The Telegraph might cause serious harm in the long run.

Now that we have seen the first one, let´s move on to the next on our list of SWOT Analysis examples!

Next on our collection of SWOT analysis examples is Airbus, the world’s largest airliner manufacturer, and the one who took the most orders in 2019. So, let’s see what are the strengths, weaknesses, opportunities and threats for Airbus:

SWOT Analysis examples #2: Airbus

Market share – with an estimated market share of almost 63% , Airbus is the largest aircraft manufacturer in the world, which gives the company a very strong and powerful position in the industry.
Global network & international presence – with business operations located in Europe, the Americas, Africa & The Middle East, and Asia, Airbus has an incredible international network and presence.
Innovation & technology – additionally, Airbus is putting a huge focus on investing in technology, innovation, and next generation manufacturing, more than any other competitor in the industry.
Eco-efficiency – and last but not least, another strength that Airbus counts with is eco-efficiency. The company has been recognized is a leader in proposing and developing solutions for sustainable aviation.
Delay in delivery – in 2019, Airbus took more orders for aircraft delivery than any other competitor, including its biggest rival Boeing. However, this caused a delay in the delivery of the orders, causing the company to accumulate a lot of backlogs.
Operational inefficiencies – compared to rivals such as Boeing, Airbus has gained a reputation of being somewhat inconsistent when it comes to executing operations. The company is often delaying launches of its new models – for example, the launch of Airbus A380 was delayed by more than one year. This weaknesses is definitely something that Airbus could work on.
High production costs – another key weakness of the company is the fact that it has higher production costs than its main rival Boeing, which leaves them with lower profit margins.

Boom in Travelling – as the travelling industry is booming due to the growing percentage of the middle class, and the lower costs for airplane tickets compared to a decade ago, aircraft manufacturers are receiving more orders than ever. In fact, even in the next few years, the air traffic is anticipated to grow by 4.3% annually. According to Airbus , this alone will require “ 39,200 new passenger and dedicated freighter aircraft over the next 20 years.”
Technological advances – over the last few years, the industry has gone through a lot of innovation processes and technological improvements. This has allowed Airbus to improve its weaknesses and offer better and faster performance. Also, the fact that aircrafts are becoming more and more secure with the new technologies make people want to travel even more.
Competition – the competition in the aerospace industry is practically considered a duopoly. The reason why is because Boeing and Airbus have a combined share of 91% for the whole commercial aircraft market globally. This means that they will not have to fight off small competitors, but also that the competition between both companies is extremely fierce. Which can be a significant threat for Airbus.
Global pandemic – in 2020, the whole world suffered from the COVID-19 pandemic. This alone had a severe impact on the growth of the commercial aircraft market, as people suddenly had to stop travelling. And although this was a temporary decrease that is slowly starting to recover, aircraft manufacturers like Airbus will be affected at least for the next one year.
Potential competitors in key markets – of course, the fact that Airbus and Boeing are currently dominating the global market does not mean that this will last forever. Currently, important markets like China and Russia are also planning to develop their own commercial aircraft. If that happens, it will most probably shrink the market share for Airbus.

Next on our list of SWOT Analysis examples is Zara, one of the biggest clothing companies in the world. Zara is a brand owned by Inditex , among with several others such as Bershka, Stradivarius, and Oysho.

SWOT Analysis examples #3: Zara

Efficient manufacturing & delivery – Zara is one of the most efficient clothing companies in the world when it comes to all operational processes – manufacturing, delivery, supply chain and logistics. Reportedly, the company needs just 1 week to develop a new product and get it to all 2,259 stores it has worldwide, compared to an industry average of 6 months. This gives Zara a huge advantage when it comes to delivering new designs in record time.
Competitive pricing – additionally, the company also offers a very competitive pricing for the variety and amount of products it offers. Its clothing is targeted to a middle class audience, although it´s also true that the pricing is adapted to the characteristics of each market. For example, the prices for Zara in South Korea are 96% higher than the prices in Spain, taking into account the exchange rate of the study.
Strong global presence – As we already mentioned, Zara has over 2,200 stores across 96 countries, positioning itself as a strong international brand with a solid support (Inditex, with over 7,000 stores ).
Fast reaction to new trends – the company is known for imitating high-fashion trends, and it is extremely fast when it comes to spotting and replicating them for its own products.

The company´s strengths is what makes it one of my favourite SWOT analysis examples on this list. They are very well defined, and definitely makes Zara stand out from competitors. However, this does not mean that there are no weaknesses:

Zero policy advertising – the company is famous for its zero policy advertising. This means that, instead of investing in Marketing and Communication actions, they use the money for opening new stores. Although this policy has some awesome benefits, I think that it´s also a very big weakness. The heavy digital advertising done by competitors can completely overshadow Zara in the long run.
Limited product stock – because Zara delivers fashion pieces in record time, they don´t produce as much stock as other companies would. Which is not great news for customers who often love a piece, and it is already out of stock – or simply not in the size they need.
Controversies – additionally, the company is also involved in multiple controversies revolving child labour and paying under minimum wage. As people are getting more and more conscious about these topics, these controversies is doing a lot of harm to the company´s reputation.
High fashion imitation – as we already mentioned, Zara is known to imitate fashion trends. Which means that they are not a trend setter, and they do not offer a lot of unique and creative pieces designed exclusively by them.

Growing demand for high fashion – currently, there is a growing demand for clothing that looks high fashion, but don´t cost thousands of dollars for a single piece. This is a great opportunity for Zara, which does precisely what people want – selling high fashion style for affordable prices.
Fast fashion – as customer behavior is changing, people get bored with everything faster than ever. And this is true for fashion as well – clothes that people would wear for months and years now get substituted with new pieces much more often. Which is another excellent opportunity for Zara as the so-called “fast fashion is on the rise”.
Market growth – according to Statista , the growth of the apparel market is steadily increasing by 5-6% every year, which is great news for clothing companies like Zara.

And now, let´s take a look at the external changes that are imposing a threat for this one of our SWOT analysis examples:

Growing competition – the increasing demand for fashion and apparel also means that competition is growing as well. With huge online providers taking over the Internet such as ASOS, Fashion Nova, Shein and others, Zara´s popularity is becoming threatened by other companies. Especially considering the fact that these providers actually offer products from multiple brands at the same place.
Increasing costs – another tendency that could impose a significant threat for Zara are the increasing costs for production and raw material. Which, as a consequence, will probably reduce its revenue and profit margins. Especially considering the fact the prices are already relatively low! For now, Zara has managed to develop a well integrated and efficient supply chain that keeps the cost of raw materials low. But this might not last forever, especially if the prices keep rising.
Regulatory threats – the business industry is gradually getting more and more regulated. On a global scale, governments and legal agencies are regulating all kind of sectors and businesses, and the fashion market is not an exception. This includes labour, quality, customer services, and many other aspects of the industry. All of these regulations might eventually have a negative impact on Zara.

Do you want to learn more about SWOT analysis? You might want to check these articles:

9 Effective Ways to Identify Opportunities in SWOT Analysis
10 Common SWOT Analysis Mistakes in 2022 & How to Fix Them

Need more SWOT analysis examples? Check out our article on Coca Cola SWOT analysis.

Made with Easelly, free infographic maker

How do you write a good SWOT analysis?

The first step for writing a good SWOT analysis is to determine your objective - what company and strategy are you going to analyze? Next, take a piece of paper and draw a grid with 4 squares, labeling each one of them as it follows - Strengths, Weaknesses, Opportunities and Threats. The key to a good SWOT analysis is getting as specific as possible with each section in order to get more tangible and clear points of action.

What is a SWOT analysis tool?

SWOT analysis is a technique for strategic planning that allows you to assess and identify the strengths and weaknesses of your company (internal factors), as well as the opportunities and threats that may come from the outside, including market trends and competition (external factors).

Why is SWOT analysis important?

SWOT analysis is important for businesses because it provides them with a simple, but powerful framework to assess their own ability to compete on the market, identifying strengths to highlight and weaknesses to work on improving. It also gives them a quick glance at the market from an outside perspective, allowing them to spot current opportunities and identify potential threats that should be addressed as early as possible.

What is the most difficult part of the SWOT analysis?

While the answer may vary between companies and industries, the most difficult part of the SWOT analysis tends to be Opportunities. The main reason why is because the answer may sometimes require a comprehensive and detailed market research to reveal certain opportunities.

And that was all from me, folks! I hope you liked my in-depth SWOT analysis examples. I think the best way to learn a concept is to see how it is applied in practice. For this reason, I wanted to focus this article from a practical rather than a theoretical perspective. However, if you have any questions, do not hesitate to send me an email at [email protected], or just let me know in the comments below!

Thank you for taking the time to read my article 3 Great SWOT Analysis Examples with Real Companies, and I hope to see you in the next one!

animitevabg

Hello, and welcome to my blog! Let me present myself.

My name is Ani and I am a trilingual Digital Marketing & Analytics Specialist with 10 years of experience across multiple sectors including Cloud-based services, SaaS, Digital payments, Mobile apps, and Executive Education, among others.

My expertise covers areas such as Google Ads, Google Analytics, Search Engine Optimization, Content Marketing, and Social Media.

Join the discussion Cancel reply

The Future of Property Listings: How Tech is Changing the Game

VPN Protocols: A Comprehensive Analysis

8 Reasons To Hire A Design Agency

How Can A Startup Get Its Own Office Space In New Zealand

The Vital Importance of AI in Marketing and Business

Follow my LinkedIn page for the latest updates!

SWOT Analysis Case Studies

The SWOT analysis method is the situation analysis method. It was proposed by Weirik, a professor of management at the University of San Francisco in the early 1980s. It is often used in enterprise strategy formulation, competitor analysis and other occasions including analysis of S trengths, W eaknesses, O pportunities, and T hreats. Therefore, the SWOT analysis is a method that comprehensively summarizes the various aspects of the internal and external conditions of the enterprise, and then analyzes the strengths and weaknesses of the organization, opportunities, and threats faced.

Through SWOT analysis, you can help companies to pool resources and actions in their strengths and where there are the most opportunities; and to make their strategy clearer.

Edit this Diagram

What is a SWOT model

The analysis of strengths and weaknesses focuses on the strength of the company itself and its comparison with competitors, while the opportunity and threat analysis focus on changes in the external environment and possible impact on the company. In the analysis, all internal factors (i.e., strengths and weaknesses) should be grouped together and then evaluated by external forces (opportunities and threats).

Internal Factors (Strengths and weaknesses)

The analysis of strengths and weaknesses (S-W) of internal conditions is an internal method of assessment. The main purpose is to confirm the relationship between expertise and ability of the organization’s internal conditions. The strengths and weaknesses of its internal conditions are internal factors that the organization can control, including financial resources, technical resources, research and development, organizational culture, human resources, product characteristics, and marketing resources.

External Factors (opportunities and threats)

With the rapid development of economy, science and technology and many other aspects, especially the acceleration of globalization and integration of the world economy, the establishment of global information networks and the diversification of consumer demand, the environment in which companies are located are more open and volatile. This change has had a profound effect on almost all businesses. Because of this, environmental analysis has become an increasingly important corporate function.

The Opportunity and Threat (O-T) analysis is a method of evaluating the external environment. The main purpose is to confirm the relationship between the competitions of the industrial environment outside the organization. The opportunities and threats of the external environment are external factors that cannot be controlled by the organization, including factors such as competition, politics, economy, law, society, culture, science and technology, and demographic environment.

What is a Competitive Advantage?

Identifying attractive opportunities in the environment is one thing, and having the necessary competency to succeed in an opportunity is another matter. Each company must regularly check its strengths and weaknesses. When two companies are in the same market or they all can provide products and services to the same customer group, if one of them has higher profitability or profit potential, then we think that the company has a higher competitive advantage than the other. In other words, the so-called competitive advantage refers to a company’s ability to surpass its competitors, and this ability helps to achieve the company’s main goal – profitability. However, it is worth noting that competitive advantage is not necessarily fully reflected in higher profitability, because sometimes companies prefer to increase market share or employees.

Competitive advantage can refer to any superiority in the eyes of a consumer or its product in comparison with its competitors. It can be the breadth of the product line, the size, quality, reliability, suitability, style, and image of the product and services. Although a competitive advantage refers to a company that has a stronger overall advantage than its competitors, it is more meaningful to specify in which area the company has an advantage, because only in this way can we foster strengths and avoid weaknesses, or we can defeat the weakness.

Since the enterprise is a whole and the sources of competitive strengths are very extensive, it is necessary to make a detailed comparison between the company and its competitors from the aspects of the entire value chain when analyzing the strengths and weaknesses. Such as whether the product is novel, whether the manufacturing process is complicated, whether the sales channel is unimpeded, and whether the price is competitive. If an enterprise’s advantage in one aspect or several aspects is the key success factor that a company in the industry should have, then the enterprise’s comprehensive competitive advantage may be stronger. It should be pointed out that to measure whether a company and its products have a competitive advantage can only stand on the perspective of existing potential users, rather than stand on the perspective of the company.

In the process of maintaining a competitive advantage, enterprises must profoundly understand their resources and capabilities and take appropriate measures. Because once a company has a competitive advantage in one aspect, it is bound to attract the attention of competitors. Generally speaking, after a period of hard work, the company establishes a certain competitive advantage; then it is in a situation to maintain this competitive advantage, and competitors start to respond gradually; and if the competitors directly attack the advantage of the company, or Taking other more powerful strategies will weaken this advantage.

The main factors affecting the duration of a company’s competitive strengths are:

How long does it take to establish this advantage?
What are the advantages to be obtained?
How long does it take for a competitor to make a strong reaction?

If the company analyzes these three factors clearly, it will identify itself in establishing and maintaining its competitive advantage.

The company should not correct all its weaknesses, nor should it make use of all its strengths. The main question is whether the company should be limited to the opportunities it already has, or whether it should acquire and develop some strengths to find better opportunities.

SWOT Analysis Strategies

In the process of adaptability analysis, enterprise top management should be based on the determination of internal and external variables, using leverage, inhibitory, vulnerability, and problematic four basic concepts to analyze this model.

Leverage (S + O). Leverage effects arise when internal and external opportunities are consistent and adaptive to one another. In this situation, companies can use their internal strengths to pick up external opportunities and fully integrate opportunities and strengths. However, opportunities are often fleeting, so companies must sharply capture opportunities and seize the opportunity to seek greater development.
Inhibitory (W + O). Inhibiting means impeding, preventing, influencing and controlling. When the opportunities provided by the environment are not suited to the internal resource advantages of the company, or cannot be overlapped with each other, the strengths of the enterprise will no longer be realized. In this situation, companies need to provide and add certain resources to promote the transformation of internal resources and weaknesses into strengths to cater to or adapt to external opportunities.
Vulnerability (S + T). Vulnerability means the decrease or decrease in the degree or intensity of strengths. When environmental conditions pose a threat to the company’s strengths, the strengths cannot be fully exerted and ending up with a fragile situation. In this situation, companies must overcome the threats to take advantage of them.
Problematic (W + T). When the company’s internal weaknesses and corporate external threats meet, companies face severe challenges. If they are not properly handled, they may directly threaten the survival of the company.

Steps for Conducting SWOT Analysis

What is the current strategy?
Confirm the changes in the external environment of the company (Porter 5 force or PEST)
According to the company’s resource mix, confirm the company’s key capabilities and key constraints.
Construct the SWOT Matrix by placing each one of already identified factors. This is an excellent graphic presentation of what is good and what is bad in your company, and what you can expect as an opportunity or threat.
Define SWOT Strategies
Choose what strategy to be adopted and determine the future direction and improvement actions to be taken

Case Study 1: Amazon SWOT Analysis

Amazon Detailed SWOT Analysis

Brand Identity: Amazon is synonymous with online sales services, and Amazon focuses on improving customer satisfaction during the business process.
Pioneer advantage: Amazon is undoubtedly the leader in the online retail industry.
Cost structure: Amazon effectively uses its cost advantage, operates on thin profits, and is still profitable in trading.
Business Development: Amazon continuously improves its service level and provides diversified services.
Low-profit margins: Amazon has a very thin profit margin to maintain its cost-leading strategy. But low-profit margins make companies vulnerable to external shocks and crises, as well as other market changes.
Seasonality: There is a seasonal difference between Amazon’s revenue and business scope, with sales and revenue peaking in the fourth quarter of each year.

Opportunity

Today’s diversification of e-commerce business
Continues to increase awareness of its own branded products and services.
Amazon develops more local websites to participate in the international market. With the international expansion of Amazon, some local businesses have the opportunity to enter the international market.
Promoting the strategic cooperation between Amazon e-commerce and its related affiliated industries will drive positive development of the industry
Loss of profits due to low-profit margins
Patent infringement and other aspects of Amazon’s litigation
E-commerce industry barriers to entry barriers
Cybersecurity issues

Amazon – Recent Development

What do you need to do next after you understand strengths and weaknesses and identify opportunities and threats? Let us take a look at how Amazon has seized the opportunity to successfully transform itself from an e-commerce company into a global leading technology company! When Amazon realized the limitations of the retail industry, it expanded its business boundaries promptly. In addition to cloud computing and smart voice, Amazon has also contacted third-party platforms such as logistics and suppliers, and even invested in the film and television industry, making its business model more diversify. In 2008, Amazon realized that content can attract and extend users’ time on the platform, and began to provide original content on Prime Instant Video, Amazon’s mainstream media video platform, and as part of the Prime membership service. Amazon’s ecology can be described as a rotating flywheel. This flywheel is centered on Prime’s membership system, and new interests have been added to it, gradually creating an all-encompassing ecology. While continuing to attract new users, it has promoted the development of Amazon’s e-commerce and other new businesses, and it will continue to do so.

Case Study 2: Starbucks SWOT Analysis

Strengths – The Starbucks Group has strong profitability, with 2004 revenue exceeding $600 million.
Weaknesses – Starbucks is known for its continuous improvement and innovation. (Translator’s Note: It can be understood as the instability of the product line)
Opportunity – The launch of new products and services, such as the sale of coffee at the show.
Threats – rising costs of coffee and dairy products.

Starbucks Detailed SWOT Analysis

Starbucks Corporation is a very profitable organization, earning more than $600 million in 2004. The company generated revenue of more than $5000 million in the same year.
It is a global coffee brand built a reputation for fine products and services. It has almost 9000 cafe shop in almost 40 countries.
Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.
The organization has strong ethical values and an ethical mission statement as follows, ‘Starbucks is committed to a role of environmental leadership in all facets of our business.’
Starbucks has a reputation for new product development and creativity. However, they can vulnerable to the possibility that their innovation may falter over time.
The organization has a strong presence in the United States of America with more than three-quarters of its cafe shop located in the home market. Some people think they need to invest in different countries (national portfolios) to spread business risks.
The organization is dependent on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

Opportunities

Starbucks is very good at taking advantage of opportunities. E.g. In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers created their music CD.
New products and services that can be retailed in their cafe shop, such as low price products.
The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge.
Co-branding with other manufacturers of food and drink and brand franchising to manufacturers of other goods and services both have potential.
Who knows if the market for coffee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future?
Starbucks is exposed to rises in the cost of coffee and dairy products.
Since its conception in Pike Place Market, Seattle in 1971, Starbucks’ success has to lead to the market entry of many competitors and copycat brands that pose potential threats.

Case Studies 3: Coca-Cola SWOT Analysis Example

Coca-Cola Detailed SWOT Analysis

Most sponsored corporate partners.
Spread across the world in 650 languages and regions.
The market territory spans nearly 200 countries on five continents.
To develop new products, the Coca-Cola Company not only sells cola but also other types of beverages.
Coca-Cola has a long history, so it has a certain status in the market.
There is no certain integration and the common goal of strategic management.
The failure to develop new tastes.
The gradual transfer of customer loyalty.
Loss of market development opportunities.
Sponsor the Olympic Games, use this opportunity to replace their brands, products, and make advertisements, especially The Olympic Games is a worldwide movement that allows the world’s population to recognize this product, expand its market reach, and raise awareness of its products.
Participate in the World Cup, take this world-wide activity to pave the way for your products and gain popularity.
Enter the Chinese rural market.
Enter the American film market.
Pepsi is Coca-Cola’s biggest competitor
The products produced by the company may not be favored by young people today.
Coca-Cola is not considered to be good for health by many people

Formulating Actions for SWOT Analysis

Having completed a SWOT Analysis, so what’s next? Is this enough to conduct the SWOT analysis? You need to know when you are analyzing that at the end of the process you need to expect future directions for next actions. Here is an example of formulating actions for a SWOT analysis:

Disclaimer : This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only.

Terms of Service
Privacy Policy
Security Overview

SWOT Analysis: How To Do One [With Template & Examples]

Published: October 05, 2023

As your business grows, you need a roadmap to help navigate the obstacles, challenges, opportunities, and projects that come your way. Enter: the SWOT analysis.

man conducting swot analysis for his business

This framework can help you develop a plan to determine your priorities, maximize opportunities, and minimize roadblocks as you scale your organization. Below, let’s go over exactly what a SWOT analysis is, a few SWOT analysis examples, and how to conduct one for your business.

When you’re done reading, you’ll have all the inspiration and tactical advice you need to tackle a SWOT analysis for your business.

What is a SWOT analysis? Importance of a SWOT Analysis How to Write a Good SWOT Analysis SWOT Analysis Examples How to Act on a SWOT Analysis

What is a SWOT analysis?

A SWOT analysis is a strategic planning technique that puts your business in perspective using the following lenses: Strengths, Weaknesses, Opportunities, and Threats. Using a SWOT analysis helps you identify ways your business can improve and maximize opportunities, while simultaneously determining negative factors that might hinder your chances of success.

While it may seem simple on the surface, a SWOT analysis allows you to make unbiased evaluations on:

Your business or brand.
Market positioning.
A new project or initiative.
A specific campaign or channel.

Practically anything that requires strategic planning, internal or external, can have the SWOT framework applied to it, helping you avoid unnecessary errors down the road from lack of insight.

Free SWOT Analysis Template

A free SWOT analysis template, plus other helpful market research resources.

Opportunities

You're all set.

Click this link to access this resource at any time.

Importance of a SWOT Analysis

You’ve noticed by now that SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The framework seems simple enough that you’d be tempted to forgo using it at all, relying instead on your intuition to take these things into account.

But you shouldn’t. Doing a SWOT analysis is important. Here’s why.

SWOT gives you the chance to worry and to dream.

A SWOT analysis is an important step in your strategic process because it gives you the opportunity to explore both the potential risks and the exciting possibilities that lie ahead. You’re giving yourself the space to dream, evaluate, and worry before taking action. Your insights then turn into assets as you create the roadmap for your initiative.

For instance, when you consider the weaknesses and threats that your business may face, you can address any concerns or challenges and strategize on how to mitigate those risks. At the same time, you can identify strengths and opportunities, which can inspire innovative ideas and help you dream big. Both are equally important.

SWOT forces you to define your variables.

Instead of diving head first into planning and execution, you’re taking inventory of all your assets and roadblocks. This process will help you develop strategies that leverage your strengths and opportunities while addressing and mitigating the impact of weaknesses and threats.

As a result, you'll gain a comprehensive understanding of your current situation and create a more specific and effective roadmap. Plus, a SWOT analysis is inherently proactive. That means you'll be better equipped to make informed decisions, allocate resources effectively, and set realistic goals.

SWOT allows you to account for mitigating factors.

As you identify weaknesses and threats, you’re better able to account for them in your roadmap, improving your chances of success.

Moreover, accounting for mitigating factors allows you to allocate your resources wisely and make informed decisions that lead to sustainable growth. With a SWOT analysis as a guide, you can confidently face challenges and seize opportunities.

SWOT helps you keep a written record.

As your organization grows and changes, you’ll be able to strike things off your old SWOTs and make additions. You can look back at where you came from and look ahead at what’s to come.

In other words, SWOT analyses serve as a tangible history of your progress and provide a reference point for future decision-making. With each update, your SWOT analysis becomes a living document that guides your strategic thinking and helps you stay agile and adaptable in an ever-changing business landscape.

By maintaining this written record, you foster a culture of continuous improvement and empower your team to make data-driven decisions and stay aligned with your long-term vision.

Parts of a SWOT Analysis

Conducting a SWOT analysis will help you strategize effectively, unlock valuable insights, and make informed decisions. But what exactly does a SWOT analysis include?

Let’s explore each component: Strengths, Weaknesses, Opportunities, and Threats.

Your strengths are the unique advantages and internal capabilities that give your company a competitive edge in the market. A strong brand reputation, innovative products or services, or exceptional customer service are just a few examples. By identifying and capitalizing on your strengths, you can foster customer loyalty and build a solid foundation for growth.

No business is flawless. Weaknesses are areas where you may face challenges or fall short of your potential. It could be outdated processes, skill gaps within the team, or inadequate resources. By acknowledging these weaknesses, you can establish targeted initiatives for improvement, upskill your team, adopt new technologies, and enhance your overall operational efficiency.

Opportunities are external factors that can contribute to your company's progress. These may include emerging markets, technological advancements, changes in consumer behavior, or gaps in the market that your company can fill. By seizing these opportunities, you can expand your market reach, diversify your product offerings, forge strategic partnerships, or even venture into untapped territories.

Threats are external factors that are beyond your control and pose challenges to your business. Increased competition, economic volatility, evolving regulatory landscapes, or even changing market trends are examples of threats. By proactively assessing and addressing them, you can develop contingency plans, adjust your strategies, and minimize their impact on your operations.

In a SWOT analysis, you’ll have to take both internal and external factors into account. We’ll cover those next.

Free Market Research Kit

5 Research and Planning Templates + a Free Guide on How to Use Them in Your Market Research

SWOT Analysis Template
Survey Template
Focus Group Template

SWOT Analysis Internal and External Factors

A SWOT analysis typically has internal (i.e., within your organization) and external (i.e., outside your organization) factors at play. Here's a breakdown of each.

Internal Factors

Internal factors refer to the characteristics and resources within your organization that directly influence its operations and performance. These factors are completely within your organization's control, so they can be modified, improved, or capitalized upon.

In a SWOT analysis, strengths and weaknesses are categorized as internal factors. Let’s look at a few examples.

Brand reputation
Unique expertise
Loyal customer base
Talented workforce
Efficient processes
Proprietary technology
Outdated technology
Inadequate resources
Poor financial health
Inefficient processes
Skill gaps within the team

External Factors

External factors are elements outside the organization's control that have an impact on its operations, market position, and success. These factors arise from the industry climate and the broader business environment. You typically have no control over external factors, but you can respond to them.

In a SWOT analysis, opportunities and threats are categorized as external factors. Let’s look at a few examples.

Emerging markets
Changing consumer trends
Technological advancements
Positive shifts in regulations
New gaps in the market you could fill
Intense competition
Economic downturns
Disruptive technologies
Changing regulations
Negative shifts in consumer behavior

Remember, a well-rounded SWOT analysis empowers you to capitalize on strengths, address weaknesses, seize opportunities, and navigate threats — all while making informed decisions for the future.

Now, let’s take a look at how you can write a good SWOT analysis for yourself or for stakeholders.

How do you write a good SWOT analysis?

There are several steps you’ll want to take when evaluating your business and conducting a strategic SWOT analysis.

1. Download HubSpot's SWOT Analysis Template.

There’s no need to start from scratch for your analysis. Instead, start by downloading a free, editable template from HubSpot. Feel free to use the model yourself, or create your own as it suits your needs.

HubSpot’s free SWOT analysis template explains how to do a SWOT analysis.

3. Identify your objective.

Before you start writing things down, you’ll need to figure out what you’re evaluating with your SWOT analysis.

Be specific about what you want to analyze. Otherwise, your SWOT analysis may end up being too broad, and you’ll get analysis paralysis as you are making your evaluations.

If you’re creating a new social media program, you’ll want to conduct an analysis to inform your content creation strategy. If you’re launching a new product, you’ll want to understand its potential positioning in the space. If you’re considering a brand redesign, you’ll want to consider existing and future brand conceptions.

All of these are examples of good reasons to conduct a SWOT analysis. By identifying your objective, you’ll be able to tailor your evaluation to get more actionable insights.

4. Identify your strengths.

“Strengths” refers to what you are currently doing well. Think about the factors that are going in your favor as well as the things you offer that your competitors just can’t beat.

For example, let’s say you want to use a SWOT analysis to evaluate your new social media strategy.

If you’re looking at a new social media program, perhaps you want to evaluate how your brand is perceived by the public. Is it easily recognizable and well-known? Even if it’s not popular with a widespread group, is it well-received by a specific audience?

Next, think about your process: Is it effective or innovative? Is there good communication between marketing and sales?

Finally, evaluate your social media message, and in particular, how it differs from the rest of the industry. I’m willing to bet you can make a lengthy list of some major strengths of your social media strategy over your competitors, so try to dive into your strengths from there.

5. Identify your weaknesses.

In contrast to your strengths, what are the roadblocks hindering you from reaching your goals? What do your competitors offer that continues to be a thorn in your side?

This section isn’t about dwelling on negative aspects. Rather, it’s critical to foresee any potential obstacles that could mitigate your success.

When identifying weaknesses, consider what areas of your business are the least profitable, where you lack certain resources, or what costs you the most time and money. Take input from employees in different departments, as they’ll likely see weaknesses you hadn’t considered.

If you’re examining a new social media strategy, you might start by asking yourself these questions: First, if I were a consumer, what would prevent me from buying this product, or engaging with this business? What would make me click away from the screen?

Second, what do I foresee as the biggest hindrance to my employees’ productivity, or their ability to get the job done efficiently? What derails their social media efforts?

6. Consider your opportunities.

This is your chance to dream big. What are some opportunities for your social media strategy you hope, but don’t necessarily expect, to reach?

For instance, maybe you’re hoping your Facebook ads will attract a new, larger demographic. Maybe you’re hoping your YouTube video gets 10,000 views and increases sales by 10%.

Whatever the case, it’s important to include potential opportunities in your SWOT analysis. Ask yourself these questions:

What technologies do I want my business to use to make it more effective?
What new target audience do I want to reach?
How can the business stand out more in the current industry?
Is there something our customers complain about that we could fix?

The opportunities category goes hand-in-hand with the weaknesses category. Once you’ve made a list of weaknesses, it should be easy to create a list of potential opportunities that could arise if you eliminate your weaknesses.

7. Contemplate your threats.

It’s likely, especially if you’re prone to worry, you already have a good list of threats in your head.

If not, gather your employees and brainstorm. Start with these questions:

What obstacles might prevent us from reaching our goals?
What’s going on in the industry, or with our competitors, that might mitigate our success?
Is there new technology out there that could conflict with our product?

Writing down your threats helps you evaluate them objectively.

For instance, maybe you list your threats in terms of least and most likely to occur and divide and conquer each. If one of your biggest threats is your competitor’s popular Instagram account, you could work with your marketing department to create content that showcases your product’s unique features.

SWOT Analysis Chart

Download a free SWOT analysis chart included in HubSpot’s free market research kit .

A SWOT analysis doesn’t have to be fancy. Our SWOT analysis chart provides a clear and structured framework for capturing and organizing your internal strengths and weaknesses, and external opportunities and threats. It's the perfect visual aid to make sense of the wealth of information gathered during your analysis.

(Plus, you can always customize and paste it into a document you plan to share with stakeholders.)

But remember: Filling out the SWOT chart is just one step in the process. Combine it with our entire market research kit , and you'll have all the tools necessary to help your organization navigate new opportunities and threats.

SWOT Analysis Examples

The template above helps get you started on your own SWOT analysis.

But, if you’re anything like me, it’s not enough to see a template. To fully understand a concept, you need to see how it plays out in the real world.

These SWOT examples are not exhaustive. However, they are a great starting point to inspire you as you do your own SWOT analysis.

Apple’s SWOT analysis

Here’s how we’d conduct a SWOT analysis on Apple.

First off, strengths. While Apple has many strengths, let’s identify the top three:

Brand recognition.
Innovative products.
Ease of use.

Apple’s brand is undeniably strong, and its business is considered the most valuable in the world . Since it’s easily recognized, Apple can produce new products and almost ensure a certain degree of success by virtue of the brand name itself.

Apple’s highly innovative products are often at the forefront of the industry. One thing that sets Apple apart from the competition is its product inter-connectivity.

For instance, an Apple user can easily sync their iPhone and iPad together. They can access all of their photos, contacts, apps, and more no matter which device they are using.

Lastly, customers enjoy how easy it is to use Apple’s products. With a sleek and simple design, each product is developed so that most people can quickly learn how to use them.

Next, let’s look at three of Apple’s weaknesses.

High prices
Closed ecosystem
Lack of experimentation

While the high prices don’t deter Apple’s middle- and upper-class customer base, they do hinder Apple’s ability to reach a lower-class demographic.

Apple also suffers from its own exclusivity. Apple controls all its services and products in-house, and while many customers become loyal brand advocates for this reason, it means all burdens fall on Apple employees.

Ultimately, Apple’s tight control over who distributes its products limits its market reach.

Lastly, Apple is held to a high standard when it comes to creating and distributing products. Apple’s brand carries a high level of prestige. That level of recognition inhibits Apple from taking risks and experimenting freely with new products that could fail.

Now, let’s take a look at opportunities for Apple.

It’s easy to recognize opportunities for improvement, once you consider Apple’s weaknesses. Here’s a list of three we came up with:

Expand distribution options.
Create new product lines.
Technological advancement.

One of Apple’s biggest weaknesses is its distribution network, which, in the name of exclusivity, remains relatively small. If Apple expanded its network and enabled third-party businesses to sell its products, it could reach more people globally, while alleviating some of the stress currently put on in-house employees.

There are also plenty of opportunities for Apple to create new products. Apple could consider creating more affordable products to reach a larger demographic, or spreading out into new industries — Apple self-driving cars, perhaps?

Finally, Apple could continue advancing its products’ technology. Apple can take existing products and refine them, ensuring each product offers as many unique features as possible.

Finally, let’s look at threats to Apple.

Believe it or not, they do exist.

Here are three of Apple’s biggest threats:

Tough competition.
International issues.

Apple isn’t the only innovative tech company out there, and it continues to face tough competition from Samsung, Google, and other major forces. In fact, Samsung sold more smartphones than Apple did in Q1 of 2022 , shipping 17 million more units than Apple and holding 24% of the market share.

Many of Apple’s weaknesses hinder Apple’s ability to compete with the tech corporations that have more freedom to experiment, or that don’t operate in a closed ecosystem.

A second threat to Apple is lawsuits. Apple has faced plenty of lawsuits, particularly between Apple and Samsung . These lawsuits interfere with Apple’s reputable image and could steer some customers to purchase elsewhere.

Finally, Apple needs to improve its reach internationally. The company isn’t number one in China and doesn’t have a very positive relationship with the Chinese government. In India, which has one of the largest consumer markets in the world, Apple’s market share is low , and the company has trouble bringing stores to India’s market.

If Apple can’t compete globally the way Samsung or Google can, it risks falling behind in the industry.

Starbucks SWOT Analysis

Now that we’ve explored the nuances involved with a SWOT analysis, let’s fill out a SWOT template using Starbucks as an example.

Here’s how we’d fill out a SWOT template if we were Starbucks:

Download this Template for Free

Restaurant Small Business SWOT Analysis

Some small business marketers may have difficulty relating to the SWOTs of big brands like Apple and Starbucks. Here’s an example of how a dine-in Thai restaurant might visualize each element.

A SWOT analysis example for a restaurant small business.

Small restaurants can lean into their culinary expertise and service skills to find opportunities for growth and brand awareness. A SWOT analysis can also help identify weaknesses that can be improved, such as menu variation and pricing.

While a restaurant might not be as worried about high-level lawsuits, a small business might be more concerned about competitors or disruptors that might enter the playing field.

Local Boutique SWOT Analysis

In another small business example, let’s take a look at a SWOT analysis for a local boutique.

A SWOT analysis example for a local boutique.

This shop might be well known in its neighborhood, but it also might take time to build an online presence or get its products in an online store.

Because of this, some of its strengths and opportunities might relate to physical factors while weaknesses and threats might relate to online situations.

How to Act on a SWOT Analysis

After conducting a SWOT analysis, you may be asking yourself: What’s next?

Putting together a SWOT analysis is only one step. Executing the findings identified by the analysis is just as important — if not more.

Put your insights into action using the following steps.

Take advantage of your strengths.

Use your strengths to pursue opportunities from your analysis.

For example, if we look at the local boutique example above, the strength of having affordable prices can be a value proposition. You can emphasize your affordable prices on social media or launch an online store.

Address your weaknesses.

Back to the boutique example, one of its weaknesses is having a poor social media presence. To mitigate this, the boutique could hire a social media consultant to improve its strategy. They may even tap into the expertise of a social-savvy employee.

Make note of the threats.

Threats are often external factors that can’t be controlled, so it’s best to monitor the threats outlined in your SWOT analysis to be aware of their impacts on your business.

When to Use a SWOT Analysis

While the examples above focus on business strategy in general, you can also use a SWOT analysis to evaluate and predict how a singular product will play out in the market.

Ultimately, a SWOT analysis can measure and tackle both big and small challenges, from deciding whether or not to launch a new product to refining your social media strategy.

Editor's note: This post was originally published in May 2018 and has been updated for comprehensiveness.

Don't forget to share this post!

25 Tools & Resources for Conducting Market Research

What is a Competitive Analysis — and How Do You Conduct One?

Market Research: A How-To Guide and Template

TAM SAM SOM: What Do They Mean & How Do You Calculate Them?

How to Run a Competitor Analysis [Free Guide]

5 Challenges Marketers Face in Understanding Audiences [New Data + Market Researcher Tips]

Causal Research: The Complete Guide

Total Addressable Market (TAM): What It Is & How You Can Calculate It

What Is Market Share & How Do You Calculate It?

3 Ways Data Privacy Changes Benefit Marketers [New Data]

Download a free SWOT analysis template in our free market research kit.

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

.css-s5s6ko{margin-right:42px;color:#F5F4F3;}@media (max-width: 1120px){.css-s5s6ko{margin-right:12px;}} AI that works. Coming June 5, Asana redefines work management—again. .css-1ixh9fn{display:inline-block;}@media (max-width: 480px){.css-1ixh9fn{display:block;margin-top:12px;}} .css-1uaoevr-heading-6{font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-1uaoevr-heading-6:hover{color:#F5F4F3;} .css-ora5nu-heading-6{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:start;-ms-flex-pack:start;-webkit-justify-content:flex-start;justify-content:flex-start;color:#0D0E10;-webkit-transition:all 0.3s;transition:all 0.3s;position:relative;font-size:16px;line-height:28px;padding:0;font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-ora5nu-heading-6:hover{border-bottom:0;color:#CD4848;}.css-ora5nu-heading-6:hover path{fill:#CD4848;}.css-ora5nu-heading-6:hover div{border-color:#CD4848;}.css-ora5nu-heading-6:hover div:before{border-left-color:#CD4848;}.css-ora5nu-heading-6:active{border-bottom:0;background-color:#EBE8E8;color:#0D0E10;}.css-ora5nu-heading-6:active path{fill:#0D0E10;}.css-ora5nu-heading-6:active div{border-color:#0D0E10;}.css-ora5nu-heading-6:active div:before{border-left-color:#0D0E10;}.css-ora5nu-heading-6:hover{color:#F5F4F3;} Get early access .css-1k6cidy{width:11px;height:11px;margin-left:8px;}.css-1k6cidy path{fill:currentColor;}

Product overview
All features
App integrations

CAPABILITIES

project icon Project management
Project views
Custom fields
Status updates
goal icon Goals and reporting
Reporting dashboards
workflow icon Workflows and automation
portfolio icon Resource management
Time tracking
my-task icon Admin and security
Admin console
asana-intelligence icon Asana Intelligence
list icon Personal
premium icon Starter
briefcase icon Advanced
Goal management
Organizational planning
Campaign management
Creative production
Marketing strategic planning
Request tracking
Resource planning
Project intake
View all uses arrow-right icon
Project plans
Team goals & objectives
Team continuity
Meeting agenda
View all templates arrow-right icon
Work management resources Discover best practices, watch webinars, get insights
What's new Learn about the latest and greatest from Asana
Customer stories See how the world's best organizations drive work innovation with Asana
Help Center Get lots of tips, tricks, and advice to get the most from Asana
Asana Academy Sign up for interactive courses and webinars to learn Asana
Developers Learn more about building apps on the Asana platform
Community programs Connect with and learn from Asana customers around the world
Events Find out about upcoming events near you
Partners Learn more about our partner programs
Support Need help? Contact the Asana support team
Asana for nonprofits Get more information on our nonprofit discount program, and apply.

SWOT analysis: Examples and templates

A SWOT analysis helps you identify strengths, weaknesses, opportunities, and threats for a specific project or your overall business plan. It’s used for strategic planning and to stay ahead of market trends. Below, we describe each part of the SWOT framework and show you how to conduct your own.

Whether you’re looking for external opportunities or internal strengths, we’ll walk you through how to perform your own SWOT analysis, with helpful examples along the way.

What is a SWOT analysis?

A SWOT analysis is a technique used to identify strengths, weaknesses, opportunities, and threats for your business or even a specific project. It’s most widely used by organizations—from small businesses and non-profits to large enterprises—but a SWOT analysis can be used for personal purposes as well.

While simple, a SWOT analysis is a powerful tool for helping you identify competitive opportunities for improvement. It helps you improve your team and business while staying ahead of market trends.

What does SWOT stand for?

SWOT is an acronym that stands for:

Opportunities

When analyzed together, the SWOT framework can paint a larger picture of where you are and how to get to the next step. Let’s dive a little deeper into each of these terms and how they can help identify areas of improvement.

Strengths in SWOT refer to internal initiatives that are performing well. Examining these areas helps you understand what’s already working. You can then use the techniques that you know work—your strengths—in other areas that might need additional support, like improving your team’s efficiency .

When looking into the strengths of your organization, ask yourself the following questions:

What do we do well? Or, even better: What do we do best?

What’s unique about our organization?

What does our target audience like about our organization?

Which categories or features beat out our competitors?

Example SWOT strength:

Customer service: Our world-class customer service has an NPS score of 90 as compared to our competitors, who average an NPS score of 70.

Weaknesses in SWOT refer to internal initiatives that are underperforming. It’s a good idea to analyze your strengths before your weaknesses in order to create a baseline for success and failure. Identifying internal weaknesses provides a starting point for improving those projects.

Identify the company’s weaknesses by asking:

Which initiatives are underperforming and why?

What can be improved?

What resources could improve our performance?

How do we rank against our competitors?

Example SWOT weakness:

E-commerce visibility: Our website visibility is low because of a lack of marketing budget , leading to a decrease in mobile app transactions.

Opportunities in SWOT result from your existing strengths and weaknesses, along with any external initiatives that will put you in a stronger competitive position. These could be anything from weaknesses that you’d like to improve or areas that weren’t identified in the first two phases of your analysis.

Since there are multiple ways to come up with opportunities, it’s helpful to consider these questions before getting started:

What resources can we use to improve weaknesses?

Are there market gaps in our services?

What are our business goals for the year?

What do your competitors offer?

Example SWOT opportunities:

Marketing campaign: To improve brand visibility, we’ll run ad campaigns on YouTube, Facebook, and Instagram.

Threats in SWOT are areas with the potential to cause problems. Different from weaknesses, threats are external and ‌out of your control. This can include anything from a global pandemic to a change in the competitive landscape.

Here are a few questions to ask yourself to identify external threats:

What changes in the industry are cause for concern?

What new market trends are on the horizon?

Where are our competitors outperforming us?

Example SWOT threats:

New competitor: With a new e-commerce competitor set to launch within the next month, we could see a decline in customers.

SWOT analysis example

One of the most popular ways to create a SWOT analysis is through a SWOT matrix—a visual representation of strengths, weaknesses, opportunities, and threats. The matrix comprises four separate squares that create one larger square.

A SWOT matrix is great for collecting information and documenting the questions and decision-making process . Not only will it be handy to reference later on, but it’s also great for visualizing any patterns that arise.

Check out the SWOT matrix below for a simple example. As you can see, each of the quadrants lists out the company's strengths, weaknesses, opportunities, and threats.

[Inline illustration] SWOT analysis (Example)

When used correctly and effectively, your matrix can be a great toolkit for evaluating your organization’s strengths and weaknesses.

How to do a SWOT analysis, with examples

A SWOT analysis can be conducted in a variety of ways. Some teams like to meet and throw ideas on a whiteboard, while others prefer the structure of a SWOT matrix. However you choose to make your SWOT analysis, getting creative with your planning process allows new ideas to flow and results in more unique solutions.

There are a few ways to ensure that your SWOT analysis is thorough and done correctly. Let’s take a closer look at some tips to help you get started.

Tip 1: Consider internal factors

Often, strengths and weaknesses stem from internal processes. These tend to be easier to solve since you have more control over the outcome. When you come across internal factors, you can start implementing improvements in a couple of different ways.

Meet with department stakeholders to form a business plan around how to improve your current situation.

Research and implement new tools, such as a project management tool , that can help streamline these processes for you.

Take immediate action on anything that can be changed in 24 hours or less. If you don’t have the capacity, consider delegating these items to others with deadlines.

The way you go about solving internal factors will depend on the type of problem. If it’s more complex, you might need to use a combination of the above or a more thorough problem management process.

Tip 2: Evaluate external factors

External factors stem from processes outside of your control. This includes competitors, market trends, and anything else that’s affecting your organization from the outside in.

External factors are trickier to solve, as you can’t directly control the outcome. What you can do is pivot your own processes in a way that mitigates negative external factors.

You can work to solve these issues by:

Competing with market trends

Forecasting market trends before they happen

Improving adaptability to improve your reaction time

Track competitors using reporting tools that automatically update you as soon as changes occur

While you won’t be able to control an external environment, you can control how your organization reacts to it.

Let’s say, for instance, that you’re looking to compete with a market trend. For example, a competitor introduced a new product to the market that’s outperforming your own. While you can’t take that product away, you can work to launch an even better product or marketing campaign to mitigate any decline in sales.

Tip 3: Hold a brainstorming session

Brainstorming new and innovative ideas can help to spur creativity and inspire action. To host a high impact brainstorming session, you’ll want to:

Invite team members from various departments. That way, ideas from each part of the company are represented.

Be intentional about the number of team members you invite, since too many participants could lead to a lack of focus or participation. The sweet spot for a productive brainstorming session is around 10 teammates.

Use different brainstorming techniques that appeal to different work types.

Set a clear intention for the session.

Tip 4: Get creative

In order to generate creative ideas, you have to first invite them. That means creating fun ways to come up with opportunities. Try randomly selecting anonymous ideas, talking through obviously bad examples, or playing team building games to psych up the team.

Tip 5: Prioritize opportunities

Now, rank the opportunities. This can be done as a team or with a smaller group of leaders. Talk through each idea and rank it on a scale of one through 10. Once you’ve agreed on your top ideas based on team capabilities, competencies, and overall impact, it’s easier to implement them.

Tip 6: Take action

It’s all too easy to feel finished at this stage —but the actual work is just beginning. After your SWOT analysis, you’ll have a list of prioritized opportunities. Now is the time to turn them into strengths. Use a structured system such as a business case , project plan, or implementation plan to outline what needs to get done—and how you plan to do it.

SWOT analysis template

A SWOT analysis template is often presented in a grid format, divided into four quadrants. Each quadrant represents one of the four elements.

Use this free SWOT analysis template to jump-start your team’s strategic planning.

Identify the strengths that contribute to achieving your objectives. These are internal characteristics that give you an advantage. Some examples could be a strong brand reputation, an innovative culture, or an experienced management team.

Next, focus on weaknesses. These are internal factors that could serve as obstacles to achieving your objectives. Common examples might include a lack of financial resources, high operational costs, or outdated technology.

Move on to the opportunities. These are external conditions that could be helpful in achieving your goals. For example, you might be looking at emerging markets, increased demand, or favorable shifts in regulations.

Lastly, let's address threats. These are external conditions that could negatively impact your objectives. Examples include increased competition or potential economic downturns.

Why is a SWOT analysis important?

A SWOT analysis can help you improve processes and plan for growth. While similar to a competitive analysis , it differs because it evaluates both internal and external factors. Analyzing key areas around these opportunities and threats will equip you with the insights needed to set your team up for success.

A SWOT analysis isn’t only useful for organizations. With a personal SWOT analysis, you can examine areas of your life that could benefit from improvement, from your leadership style to your communication skills. These are the benefits of using a SWOT analysis in any scenario.

1. Identifies areas of opportunity

One of the biggest benefits of conducting an analysis is to determine opportunities for growth. It’s a great starting point for startups and teams that know they want to improve but aren’t exactly sure how to get started.

Opportunities can come from many different avenues, like external factors such as diversifying your products for competitive advantage or internal factors like improving your team’s workflow . Either way, capitalizing on opportunities is an excellent way to grow as a team.

2. Identifies areas that could be improved

Identifying weaknesses and threats during a SWOT analysis can pave the way for a better business strategy.

Ultimately, learning from your mistakes is the best way to excel. Once you find areas to streamline, you can work with team members to brainstorm an action plan . This will let you use what you already know works and build on your company’s strengths.

3. Identifies areas that could be at risk

Whether you have a risk register in place or not, it’s always crucial to identify risks before they become a cause for concern. A SWOT analysis can help you stay on top of actionable items that may play a part in your risk decision-making process.

It may be beneficial to pair your SWOT analysis with a PEST analysis, which examines external solutions such as political, economic, social, and technological factors—all of which can help you identify and plan for project risks .

When should you use a SWOT analysis?

You won’t always need an in-depth SWOT analysis. It’s most useful for large, general overviews of situations, scenarios, or your business.

A SWOT analysis is most helpful:

Before you implement a large change—including as part of a larger change management plan

When you launch a new company initiative

If you’d like to identify opportunities for growth and improvement

Any time you want a full overview of your business performance

If you need to identify business performance from different perspectives

SWOT analyses are general for a reason—so they can be applied to almost any scenario, project, or business.

SWOT analysis: Pros and cons

Although SWOT is a useful strategic planning tool for businesses and individuals alike, it does have limitations. Here’s what you can expect.

The simplicity of SWOT analysis makes it a go-to tool for many. Because it is simple, it takes the mystery out of strategic planning and lets people think critically about their situations without feeling overwhelmed.

For instance, a small bakery looking to expand its operations can use SWOT analysis to easily understand its current standing. Identifying strengths like a loyal customer base, weaknesses such as limited seating space, opportunities like a rising trend in artisanal baked goods, and threats from larger chain bakeries nearby can all be accomplished without any specialized knowledge or technical expertise.

Versatility

Its versatile nature allows SWOT analysis to be used across various domains. Whether it’s a business strategizing for the future or an individual planning their career path, SWOT analysis lends itself well.

For example, a tech start-up in the competitive Silicon Valley landscape could employ SWOT to navigate its pathway to profitability. Strengths might include a highly skilled development team; weaknesses could be a lack of brand recognition; opportunities might lie in emerging markets; and threats could include established tech giants.

Meaningful analysis

SWOT excels in identifying external factors that could impact performance. It nudges organizations to look beyond the present and anticipate potential future scenarios.

A retail company, for example, could use SWOT analysis to identify opportunities in e-commerce and threats from changing consumer behavior or new competitors entering the market. By doing so, the company can strategize on how to leverage online platforms to boost sales and counteract threats by enhancing the customer experience or adopting new technologies.

Subjectivity and bias

The subjective nature of SWOT analysis may lead to biases. It relies heavily on individual perceptions, which can sometimes overlook crucial data or misinterpret information, leading to skewed conclusions.

For example, a manufacturing company might undervalue the threat of new entrants in the market due to an overconfidence bias among the management. This subjectivity might lead to a lack of preparation for competitive pricing strategies, ultimately affecting the company's market share.

Lack of prioritization

SWOT analysis lays out issues but falls short on prioritizing them. Organizations might struggle to identify which elements deserve immediate attention and resources.

For instance, a healthcare provider identifying numerous opportunities for expansion into new services may become overwhelmed with the choices. Without a clear way to rank these opportunities, resources could be spread too thinly or given to projects that do not have as much of an impact, leading to less-than-ideal outcomes.

Static analysis

Since SWOT analysis captures a snapshot at a particular moment, it may miss the evolving nature of challenges and opportunities, possibly leading to outdated strategies. An example could be a traditional retail business that performs a SWOT analysis and decides to focus on expanding physical stores, overlooking the growing trend of e-commerce. As online shopping continues to evolve and gain popularity, the static analysis might lead to investment in areas with diminishing returns while missing out on the booming e-commerce market trend.

SWOT analysis FAQ

What are the five elements of swot analysis.

Traditionally, SWOT stands for its four main elements: strengths, weaknesses, opportunities, and threats. However, a fifth essential element often overlooked is "actionable strategies." Originally developed by Albert Humphrey, SWOT is more than just a list—it's a planning tool designed to generate actionable strategies for making informed business decisions. This fifth element serves to tie the other four together, enabling departments like human resources and marketing to turn analysis into actionable plans.

What should a SWOT analysis include?

A comprehensive SWOT analysis should focus on the internal and external factors that affect your organization. Internally, consider your strong brand and product line as your strengths, and maybe your supply chain weaknesses. Externally, you'll want to look at market share, partnerships, and new technologies that could either pose opportunities or threats. You should also account for demographics, as it helps in market targeting and segmentation.

How do you write a good SWOT analysis?

Writing an effective SWOT analysis begins with research. Start by identifying your strengths, like a strong brand, and your weaknesses, like a small human resources department. Following that, look outward to find opportunities, possibly in technological advancement, and threats, like fluctuations in market share. Many businesses find it helpful to use a free SWOT analysis template to structure this information. A good SWOT analysis doesn't just list these elements; it integrates them to provide a clear roadmap for making business decisions.

What are four examples of threats in SWOT analysis?

New technologies: Rapid technological advancement can make your product or service obsolete.

Supply chain disruptions: Whether due to natural disasters or geopolitical tensions, an unstable supply chain can seriously jeopardize your operations.

Emerging competitors: New players entering the market can erode your market share and offer alternative solutions to your customer base.

Regulatory changes: New laws or regulations can add costs and complexity to your business, affecting your competitiveness.

How do you use a SWOT analysis?

Once you've completed a SWOT analysis, use the results as a decision-making aid. It can help prioritize actions, develop strategic plans that play to your strengths, improve weaknesses, seize opportunities, and counteract threats. It’s a useful tool for setting objectives and creating a roadmap for achieving them.

Plan for growth with a SWOT analysis

A SWOT analysis can be an effective technique for identifying key strengths, weaknesses, opportunities, and threats. Understanding where you are now can be the most impactful way to determine where you want to go next.

Don’t forget, a bit of creativity and collaboration can go a long way. Encourage your team to think outside of the box with 100+ team motivational quotes .

Related resources

How to choose project management software for your team

7 steps to complete a social media audit (with template)

3 visual project management layouts (and how to use them)

Grant management: A nonprofit’s guide

About / Contact
Privacy Policy
Alphabetical List of Companies
Business Analysis Topics

Walmart SWOT Analysis & Recommendations

Walmart SWOT analysis, strengths, weaknesses, opportunities, threats, external internal factors, forces, e-commerce business case study

This SWOT analysis of Walmart Inc. presents the company’s strengths and weaknesses, as well as the business opportunities and threats relevant to the condition of the retail industry. As a leading retailer, the company has competitive advantages linked to its market position and organizational size. However, to fulfill Walmart’s mission statement and vision statement in the long term, the business needs to match its strategic decisions to the issues arising from the SWOT factors. For instance, the company must account for opportunities and threats that represent external forces in the retail market. Walmart optimizes its operations based on a variety of internal and external factors, including the ones examined in this SWOT analysis.

This SWOT analysis includes an internal analysis of Walmart’s strengths and weaknesses (internal strategic factors) and an external analysis of business opportunities and threats (external strategic factors). These strengths, weaknesses, opportunities, and threats provide a picture of the strategic planning options available to the retail corporation. The SWOT variables enumerated below affect the company, as well as its customers, business partners, suppliers, and competitors in the retail industry.

Strengths (Internal Strategic Factors)

Walmart’s strengths are business characteristics that enable growth, expansion, and profitability. In this part of the SWOT analysis, such characteristics strengthen the business against external forces, such as the threat of competition. The following internal factors are Walmart’s strengths:

Dominant brick-and-mortar retail presence
High-efficiency logistics and global supply chain
Strong bargaining power against suppliers and manufacturers

Walmart’s industry position comes with a dominant brick-and-mortar retail presence, which is a business strength in this SWOT analysis. This strength enables the company to maintain a stable market share, despite aggressive competitors, like Amazon and Target. The large brick-and-mortar presence, along with the operations of the subsidiary, Sam’s Club, helps protect Walmart from competition, which includes Amazon’s relatively small brick-and-mortar operations. In addition, the high-efficiency logistics and global supply chain are a strength that this SWOT analysis links to the retail company’s growth potential. This internal strategic factor facilitates the ability to offer low prices, in support of Walmart’s generic competitive strategy and intensive growth strategies . This SWOT analysis also points to the retail company’s bargaining power as a strength for influencing suppliers and manufacturers. Based on the company’s large organizational size, this internal factor strengthens the business in imposing low prices on goods sold at its stores. This pricing strategy affects suppliers and manufacturers, while ensuring low selling prices at the company’s stores and e-commerce website. To support high efficiencies and large-scale operations, Walmart’s operations management involves advanced business information systems and related technologies. These technological applications help minimize costs, errors, and delays in retail business processes. Walmart’s inventory management is also a foundation that supports the strengths mentioned in this part of the SWOT analysis.

Walmart’s Weaknesses (Internal Strategic Factors)

Walmart’s weaknesses impose challenges in withstanding external forces, such as the threats identified in this SWOT analysis. Business weaknesses are internal factors related to the retail company’s ability for further business development, additional competencies, and higher profits. The following are Walmart’s weaknesses:

Limited e-commerce operations
Absent or insignificant operations in international shipping
Competitive disadvantage relative to specialty sellers’ product quality

Despite its efforts to grow in the online retail space, Walmart’s e-commerce operations are small compared to Amazon’s. In this SWOT analysis, such a limitation is an internal strategic factor that weakens Walmart’s ability to capture a larger share of the retail market. Also, absent or insignificant operations in international shipping constrain potential growth based on international purchases. This weakness is in contrast to Amazon’s integrated international shipping options. Considering such a weakness, this SWOT analysis accounts for the trend of growing international online sales in more markets and market segments worldwide, among other trends described in the PESTEL/PESTLE analysis of Walmart Inc . Furthermore, because of its emphasis on low costs and low prices, the company is at a competitive disadvantage relative to specialty retailers’ product quality. Specialty retailers offer differentiated goods and services, such as high-quality customer service and high-end groceries. This competitive disadvantage is a weakness in this SWOT analysis of Walmart because it reduces the business ability to attract customers who prefer high-end shopping experiences.

Opportunities for Walmart (External Strategic Factors)

Walmart’s opportunities are options for growing the business, based on external forces or conditions in the retail industry environment. This part of the SWOT analysis shows the external factors that the company can pursue to improve its business performance, especially in e-commerce and international operations. The following are Walmart’s opportunities:

Global expansion of e-commerce operations
Establishment of international shipping
Expansion of brick-and-mortar operations to more countries

The opportunity for global e-commerce expansion addresses the weakness of Walmart’s limited e-commerce operations. As mentioned earlier in this SWOT analysis, such a weakness limits the company’s share of the retail market. Thus, global e-commerce operations can boost the company’s international market share. In relation, the company can establish international shipping operations that support global e-commerce. In this SWOT analysis of Walmart, international shipping is an opportunity for the company’s multinational success. Moreover, considering its primary dependence on sales in the United States, the company has opportunities for establishing brick-and-mortar stores in more countries in order to increase profits. Walmart’s marketing mix or 4Ps can support marketing campaigns to exploit these opportunities. For instance, promotional tactics can facilitate the success of new stores in new markets. Also, appropriate modifications to Walmart’s organizational structure or corporate structure , such as new managerial teams for new business processes, can facilitate multinational operations to grow the company based on the opportunities shown in this part of the SWOT analysis.

Threats (External Strategic Factors)

The threats to Walmart’s business are linked to the retail market condition, human resource availability, and international relations. This part of the SWOT analysis shows how external forces in the industry environment can hamper the retail company’s improvement. The following external factors are threats to Walmart:

Competitive threat from online and brick-and-mortar firms
Supply chain disruptions due to political, economic, and health factors
Labor market disruptions

Competition presents a major threat in the retail industry, as shown in the Five Forces analysis of Walmart Inc . For example, the company competes against Amazon ’s brick-and-mortar stores, marketplace, and e-commerce services; and eBay’s marketplace. Also, Walmart experiences competitive pressure from Target, Home Depot , Costco , and Best Buy, as well as Kroger, Lowe’s, Rakuten, and 7-Eleven. In this SWOT analysis, such a diversity of competitors creates a strong external force in the retail industry.

On the other hand, supply chain disruptions also threaten Walmart’s business. These disruptions are external strategic factors connected to the political and economic aspects of international relations, as well as health concerns, such as pandemics. In this SWOT analysis, these disruptions are a threat to the stability of supply chains and, consequently, the stability of Walmart’s operations, which depend on importing low-cost goods.

Labor market disruptions are linked to social trends that affect the availability and willingness of people to work for companies, like Walmart. This external factor is a threat that affects the retail company’s human resources. In this SWOT analysis, such labor market issues directly relate to the company’s capacity to provide its online and brick-and-mortar services to customers. This external strategic factor emphasizes the importance of Walmart’s human resource management in maintaining an adequate workforce to support business operations. Also, Walmart’s organizational culture or corporate culture can provide support for maintaining an attractive workplace, in order to minimize turnover. Support from the organizational culture can improve job satisfaction and, in turn, stabilize the company’s human resources. Furthermore, Walmart’s corporate social responsibility strategy is significant in this part of the SWOT analysis. Corporate citizenship and stakeholder management efforts can enhance the company’s corporate image and workers’ perception about the business.

Recommendations based on this SWOT Analysis of Walmart Inc.

This SWOT analysis shows that Walmart has the business strengths to support growth through e-commerce expansion and international operations, which are opportunities in the global retail industry. However, this SWOT analysis also shows that the company needs to implement new strategies to overcome its weaknesses, such as the limited international presence; and the threats to its retail business, like competition and supply chain disruptions. Based on these internal and external strategic factors, an applicable recommendation is for growing Walmart’s e-commerce operations. It is also recommended that the company establish more locations outside its current retail markets. Ultimately, the goal should be to make Walmart a leading retail and e-commerce company that provides its goods and services globally.

Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6 (1), 55-73.
Ismail, R. E., & Jokonya, O. (2023). Factors affecting the adoption of emerging technologies in last-mile delivery in the retail industry. Procedia Computer Science, 219 , 2084-2092.
Risberg, A. (2023). A systematic literature review on e-commerce logistics: Towards an e-commerce and omni-channel decision framework. The International Review of Retail, Distribution and Consumer Research, 33 (1), 67-91.
Taherdoost, H., & Madanchian, M. (2021). Determination of business strategies using SWOT analysis; Planning and managing the organizational resources to enhance growth and profitability. Macro Management & Public Policies, 3 (1), 19-22.
U.S. Department of Commerce – International Trade Administration – Retail Trade Industry .
Walmart Inc. – America at Work .
Walmart Inc. – Form 10-K .
Walmart Inc. – Opportunity .
Copyright by Panmore Institute - All rights reserved.
This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s.
Educators, Researchers, and Students: You are permitted to quote or paraphrase parts of this article (not the entire article) for educational or research purposes, as long as the article is properly cited and referenced together with its URL/link.

How it works

For Business

Join Mind Tools

Article • 17 min read

SWOT Analysis

Understanding your business, informing your strategy.

By the Mind Tools Content Team

Key Takeaways:

SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats.

A "SWOT analysis" involves carefully assessing these four factors in order to make clear and effective plans.

A SWOT analysis can help you to challenge risky assumptions, uncover dangerous blindspots, and reveal important new insights.

The SWOT analysis process is most effective when done collaboratively.

What Is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business.

SWOT Analysis is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future. SWOT can also uncover areas of the business that are holding you back, or that your competitors could exploit if you don't protect yourself.

A SWOT analysis examines both internal and external factors – that is, what's going on inside and outside your organization. So some of these factors will be within your control and some will not. In either case, the wisest action you can take in response will become clearer once you've discovered, recorded and analyzed as many factors as you can.

In this article, video and infographic, we explore how to carry out a SWOT analysis, and how to put your findings into action. We also include a worked example and a template to help you get started on a SWOT analysis in your own workplace.

Why Is SWOT Analysis Important?

SWOT analysis can help you to challenge risky assumptions and to uncover dangerous blindspots about your organization's performance. If you use it carefully and collaboratively, it can deliver new insights on where your business currently is, and help you to develop exactly the right strategy for any situation.

For example, you may be well aware of some of your organization's strengths, but until you record them alongside weaknesses and threats you might not realize how unreliable those strengths actually are.

Equally, you likely have reasonable concerns about some of your business weaknesses but, by going through the analysis systematically, you could find an opportunity, previously overlooked, that could more than compensate.

How to Write a SWOT Analysis

SWOT analysis involves making lists – but so much more, too! When you begin to write one list (say, Strengths), the thought process and research that you'll go through will prompt ideas for the other lists (Weaknesses, Opportunities or Threats). And if you compare these lists side by side, you will likely notice connections and contradictions, which you'll want to highlight and explore.

You'll find yourself moving back and forth between your lists frequently. So, make the task easier and more effective by arranging your four lists together in one view.

A SWOT matrix is a 2x2 grid, with one square for each of the four aspects of SWOT. (Figure 1 shows what it should look like.) Each section is headed by some questions to get your thinking started.

Figure 1. A SWOT Analysis Matrix.

Swot analysis template.

When conducting your SWOT analysis, you can either draw your own matrix, or use our free downloadable template .

How to Do a SWOT Analysis

Avoid relying on your own, partial understanding of your organization. Your assumptions could be wrong. Instead, gather a team of people from a range of functions and levels to build a broad and insightful list of observations.

Then, every time you identify a Strength, Weakness, Opportunity, or Threat, write it down in the relevant part of the SWOT analysis grid for all to see.

Let's look at each area in more detail and consider what fits where, and what questions you could ask as part of your data gathering.

Strengths are things that your organization does particularly well, or in a way that distinguishes you from your competitors. Think about the advantages your organization has over other organizations. These might be the motivation of your staff, access to certain materials, or a strong set of manufacturing processes.

Your strengths are an integral part of your organization, so think about what makes it "tick." What do you do better than anyone else? What values drive your business? What unique or lowest-cost resources can you draw upon that others can't? Identify and analyze your organization's Unique Selling Proposition (USP), and add this to the Strengths section.

Then turn your perspective around and ask yourself what your competitors might see as your strengths. What factors mean that you get the sale ahead of them?

Remember, any aspect of your organization is only a strength if it brings you a clear advantage. For example, if all of your competitors provide high-quality products, then a high-quality production process is not a strength in your market: it's a necessity.

Weaknesses, like strengths, are inherent features of your organization, so focus on your people, resources, systems, and procedures. Think about what you could improve, and the sorts of practices you should avoid.

Once again, imagine (or find out) how other people in your market see you. Do they notice weaknesses that you tend to be blind to? Take time to examine how and why your competitors are doing better than you. What are you lacking?

Be honest! A SWOT analysis will only be valuable if you gather all the information you need. So, it's best to be realistic now, and face any unpleasant truths as soon as possible.

Opportunities

Opportunities are openings or chances for something positive to happen, but you'll need to claim them for yourself!

They usually arise from situations outside your organization, and require an eye to what might happen in the future. They might arise as developments in the market you serve, or in the technology you use. Being able to spot and exploit opportunities can make a huge difference to your organization's ability to compete and take the lead in your market.

Think about good opportunities that you can exploit immediately. These don't need to be game-changers: even small advantages can increase your organization's competitiveness. What interesting market trends are you aware of, large or small, which could have an impact?

You should also watch out for changes in government policy related to your field. And changes in social patterns, population profiles, and lifestyles can all throw up interesting opportunities.

Threats include anything that can negatively affect your business from the outside, such as supply-chain problems, shifts in market requirements, or a shortage of recruits. It's vital to anticipate threats and to take action against them before you become a victim of them and your growth stalls.

Think about the obstacles you face in getting your product to market and selling. You may notice that quality standards or specifications for your products are changing, and that you'll need to change those products if you're to stay in the lead. Evolving technology is an ever-present threat, as well as an opportunity!

Always consider what your competitors are doing, and whether you should be changing your organization's emphasis to meet the challenge. But remember that what they're doing might not be the right thing for you to do. So, avoid copying them without knowing how it will improve your position.

Be sure to explore whether your organization is especially exposed to external challenges. Do you have bad debt or cash-flow problems, for example, that could make you vulnerable to even small changes in your market? This is the kind of threat that can seriously damage your business, so be alert.

Use PEST Analysis to ensure that you don't overlook threatening external factors. And PMESII-PT is an especially helpful check in very unfamiliar or uncertain environments.

A SWOT Analysis Example

Imagine this scenario: a small start-up consultancy wants a clear picture of its current situation, to decide on a future strategy for growth. The team gathers, and draws up the SWOT Analysis shown in Figure 2.

Figure 2. A Completed SWOT Analysis.

As a result of the team's analysis, it's clear that the consultancy's main strengths lie in its agility, technical expertise, and low overheads. These allow it to offer excellent customer service to a relatively small client base.

The company's weaknesses are also to do with its size. It will need to invest in training, to improve the skills base of the small staff. It'll also need to focus on retention, so it doesn't lose key team members.

There are opportunities in offering rapid-response, good-value services to local businesses and to local government organizations. The company can likely be first to market with new products and services, given that its competitors are slow adopters.

The threats require the consultancy to keep up-to-date with changes in technology. It also needs to keep a close eye on its largest competitors, given its vulnerability to large-scale changes in its market. To counteract this, the business needs to focus its marketing on selected industry websites, to get the greatest possible market presence on a small advertising budget.

Frequently Asked Questions About SWOT Analysis

1. who invented swot analysis.

Many people attribute SWOT Analysis to Albert S. Humphrey. However, there has been some debate on the originator of the tool, as discussed in the International Journal of Business Research .

2. What Does SWOT Analysis Stand For?

SWOT Analysis stands for Strengths, Weaknesses, Opportunities and Threats.

3. What Can a SWOT Analysis Be Used For?

SWOT analysis is a useful tool to help you determine your organization's position in the market. You can then use this information to create an informed strategy suited to your needs and capabilities.

4. How Do I Write a SWOT Analysis?

To conduct a SWOT analysis, you first need to create a 2x2 matrix grid. Each square is then assigned to one of the four aspects of SWOT. You can either draw this grid yourself or use our downloadable template to get started.

5. How Do SWOT Analysis and the TOWS Matrix compare?

While SWOT analysis puts the emphasis on the internal environment (your strengths and weaknesses), TOWS forces you to look at your external environment first (your threats and opportunities). In most cases, you'll do a SWOT Analysis first, and follow up with a TOWS Matrix to offer a broader context.

6. What Are the Biggest SWOT Analysis Mistakes?

Making your lists too long. Ask yourself if your ideas are feasible as you go along.
Being vague. Be specific to provide more focus for later discussions.
Not seeing weaknesses. Be sure to ask customers and colleagues what they experience in real life.
Not thinking ahead. It's easy to come up with nice ideas without taking them through to their logical conclusion. Always consider their practical impact.
Being unrealistic. Don't plan in detail for opportunities that don't exist yet. For example, that export market you've been eyeing may be available at some point, but the trade negotiations to open it up could take years.
Relying on SWOT Analysis alone. SWOT Analysis is valuable. But when you use it alongside other planning tools (SOAR, TOWS or PEST), the results will be more vigorous.

How to Use a SWOT Analysis

Use a SWOT Analysis to assess your organization's current position before you decide on any new strategy. Find out what's working well, and what's not so good. Ask yourself where you want to go, how you might get there – and what might get in your way.

Once you've examined all four aspects of SWOT, you'll want to build on your strengths, boost your weaker areas, head off any threats, and exploit every opportunity. In fact, you'll likely be faced with a long list of potential actions.

But before you go ahead, be sure to develop your ideas further. Look for potential connections between the quadrants of your matrix. For example, could you use some of your strengths to open up further opportunities? And, would even more opportunities become available by eliminating some of your weaknesses?

Finally, it's time to ruthlessly prune and prioritize your ideas, so that you can focus time and money on the most significant and impactful ones. Refine each point to make your comparisons clearer. For example, only accept precise, verifiable statements such as, "Cost advantage of $30/ton in sourcing raw material x," rather than, "Better value for money."

Remember to apply your learnings at the right level in your organization. For example, at a product or product-line level, rather than at the much vaguer whole-company level. And use your SWOT analysis alongside other strategy tools (for example, Core Competencies Analysis ), so that you get a comprehensive picture of the situation you're dealing with.

SWOT Analysis Tips

Here are four tips for getting more out of a SWOT analysis:

Be specific. The more focused and accurate you are about the points you write down, the more useful your SWOT analysis will be.
Work backwards. Experiment with filling in the four sections of your SWOT analysis in a different order, to stimulate new ways of thinking. Working backwards, in particular, from threats to strengths, may cast new light on the situation.
Get together. Highlight the most useful people to contribute to your SWOT analysis, then gather information and ideas from them all.
SWOT your competition ! To stay ahead of your competitors, carry out a regular SWOT analysis on them . Use everything you know about them to evaluate their situation, and use SWOT analysis to plan your competitive strategies accordingly.

It's also possible to carry out a Personal SWOT Analysis . This can be useful for developing your career in ways that take best advantage of your talents, abilities and opportunities.

SWOT Analysis Infographic

See SWOT Analysis represented in our infographic :

SWOT Analysis helps you to identify your organization's Strengths, Weaknesses, Opportunities, and Threats.

It guides you to build on what you do well, address what you're lacking, seize new openings, and minimize risks.

Apply a SWOT Analysis to assess your organization's position before you decide on any new strategy.

Use a SWOT matrix to prompt your research and to record your ideas. Avoid making huge lists of suggestions. Be as specific as you can, and be honest about your weaknesses.

Be realistic and rigorous. Prune and prioritize your ideas, to focus time and money on the most significant and impactful actions and solutions. Complement your use of SWOT with other tools.

Collaborate with a team of people from across the business. This will help to uncover a more accurate and honest picture.

Find out what's working well, and what's not so good. Ask yourself where you want to go, how you might get there – and what might get in your way.

Download Template Worksheet

You've accessed 1 of your 2 free resources.

Get unlimited access

Discover more content

Personal swot analysis.

Seeing Strengths, Weaknesses, Opportunities, and Threats

Add comment

Comments (1)

SWOT is useless. When you try it and you find Weaknesses box bulging, but Strengths & Opportunities completely empty, what can that possibly achieve?

Get 30% off your first year of Mind Tools

Great teams begin with empowered leaders. Our tools and resources offer the support to let you flourish into leadership. Join today!

Sign-up to our newsletter

Subscribing to the Mind Tools newsletter will keep you up-to-date with our latest updates and newest resources.

Subscribe now

Business Skills

Personal Development

Leadership and Management

Member Extras

Discover something new today

Pain points podcast - starting a new job.

How to Hit the Ground Running!

Ten Dos and Don'ts of Career Conversations

How to talk to team members about their career aspirations.

How Emotionally Intelligent Are You?

Boosting Your People Skills

Self-Assessment

What's Your Leadership Style?

Learn About the Strengths and Weaknesses of the Way You Like to Lead

Recommended for you

The pursuit of perfect.

Tal Ben-Shahar

Expert Interviews

Business Operations and Process Management

Strategy Tools

Customer Service

Business Ethics and Values

Handling Information and Data

Project Management

Knowledge Management

Self-Development and Goal Setting

Time Management

Presentation Skills

Learning Skills

Career Skills

Communication Skills

Negotiation, Persuasion and Influence

Working With Others

Difficult Conversations

Creativity Tools

Self-Management

Work-Life Balance

Stress Management and Wellbeing

Coaching and Mentoring

Change Management

Team Management

Managing Conflict

Delegation and Empowerment

Performance Management

Leadership Skills

Developing Your Team

Talent Management

Problem Solving

Decision Making

Member Podcast

Browse All Articles
Newsletter Sign-Up

SWOTAnalysis →

No results found in working knowledge.

Were any results found in one of the other content buckets on the left?
Try removing some search filters.
Use different search filters.

Media Center

SWOT Analysis

The basic idea, theory, meet practice.

TDL is an applied research consultancy. In our work, we leverage the insights of diverse fields—from psychology and economics to machine learning and behavioral data science—to sculpt targeted solutions to nuanced problems.

The slogan is regurgitated in business schools across the world: Strengths, Weaknesses, Opportunities, and Threats. This acronymic strategy technique is somewhat of a cliché for a reason – it is widely used in a host of decision-making domains from corporate to political spheres.

The tool is typically used to help brainstorming and ideation around management and planning, as well as identifying competitive advantages. It is meant to provide a somewhat holistic assessment of one’s strategic position, with strengths and weaknesses often categorized as internal factors within SWOT, while opportunities and threats typically relate to external or environmental factors.

I believe that the biggest problem that humanity faces is an ego sensitivity to finding out whether one is right or wrong and identifying what one’s strengths and weaknesses are. - Ray Dalio, founder of Bridgewater Associates

SWOT analysis is often traced back to the 1960s and the work of Albert Humphrey, a management consultant who was part of the Stanford Research Institute (SRI). Humphrey’s original acronym was “SOFT” which after being presented in Zurich, was promoted in Britain where it evolved into SWOT. 1 Though the historical narrative of SWOT typically starts with Humphrey, this account is sometimes debated, 2 as the exact origins of the technique are unclear.

An alternative account goes back earlier than the ‘60s, suggesting SWOT analysis originated from case study analyses at the Harvard Business School in the early ‘50s, where Professors George Albert Smith Jr and C. Roland Christensen were exploring organizational strategies in relation to their environment. 3 By the early 1960s, business school classrooms were focusing on strengths and weaknesses in relation to the opportunities and threats within a business’ environment, and in 1963, during a business policy conference held at Harvard, SWOT analysis was widely discussed where it was seen as a major advancement in strategic thinking. 3

Widespread popularization of the SWOT analysis emerged in the 1980s after the technique garnered considerable attention from Harvard’s Michael Porter and McGill University’s Henry Mintzberg in their business texts. Although Porter was more of a proponent of the SWOT than Mintzberg, both bear some responsibility in the broad recognition of the SWOT within the world of strategic planning. 4

Albert Humphrey

The American business and management consultant is often credited for the development of the SWOT analysis. During the ‘60s and ‘70s, Humphrey and his colleagues at the SRI created a “SOFT” analysis, where S stood for what’s satisfactory, O for opportunities, F for faults at present, and T for threats. The satisfactory and fault components eventually turned into strengths and weaknesses to create SWOT. 1

Michael Porter

An American business school professor at Harvard University, Porter’s Competitive Strategy: Techniques for Analyzing Industries and Competitors was voted the ninth most influential management book of the 20th century, 5 the highest ranking among books published after 1970. Porter’s seminal text alongside his endorsement of the SWOT analysis contributed to the popularization of the technique.

Consequences

Now described as the “tried-and-true tool of strategic analysis,” 6 the SWOT has become somewhat of a staple in professional planning contexts. Although it was first applied to business strategy, the tool is now used in a number of settings such as within nonprofits and individual level decision-making. Although the SWOT is unlikely to provide some silver bullet in an organization’s current state of affairs, it can act as a scaffolding to lay out the facts in a way that covers both the helpful and harmful; the internal and the external.

This method can be particularly useful in decision-making domains such as financial markets, where investors can be prone to confirmation bias, 7 by only seeking information that confirms an existing belief. The SWOT provides a quick, fairly holistic perspective on a company, such as this analysis by Value Line for Coca-Cola, that can account for conflicting views. These analyses can be sought after in the market research industry, with services such as Research and Markets and DataMonitor selling reports containing SWOT analyses for various corporations. 4

In terms of strategy development within an organization, SWOT factors are typically done by stakeholders and led by managers and consultants. 4 This approach has been used by a number of organizations around the world, many who the tool regularly, such as Eric Prough, Chief Product Officer of PactSafe, a SaaS company in the e-signature space. Prough claims his team conducts some form of SWOT analysis on a quarterly basis as a way to develop the product’s roadmap and position itself against competitors. 8

Controversies

In 1997, Terry Hill and Roy Westbrook of the London Business School published SWOT analysis: It’s time for a product recall . 9 The paper has been cited by over a thousand other works, offering a vocal critique of the SWOT analysis, describing the technique as a “significant waste of time.” Hill and Westbrook reviewed British 50 companies, over 20 of which used a SWOT, finding that these organization’s application of the tool exhibited similar characteristics, such as overly long lists, generalized and meaningless descriptions, failures in prioritization, and no attempt to verify any points. The most troubling common thread the researchers found, however, was that nobody used the outputs of the SWOT analysis in subsequent strategic processes.

Hill and Westbrook aren’t the only ones to challenge the SWOT analysis from an academic perspective. As Kwamena Nyarku and Gloria Agyapong write in their review of SWOT analysis: “Some existing literature on SWOT makes the technique look too simple by just identifying favorable and unfavorable internal and external variables. It fails to share light on how the variables are to be identified or classified correctly.” The question marks around how to identify SWOT factors is powerful criticism. From the perspective of behavioral science, the ubiquity of the optimism bias in human predictions of the future 10 challenges the idea that we can adequately identify our weaknesses and threats in the same light as our strengths and opportunities.

A 2019 article from Harvard Business School professor, Adam Brandenburger, 11 asks readers to rethink the SWOT analysis. Brandenburger claims that an organization’s strengths can sometimes pose a threat, while weaknesses can translate to opportunities. He cites the taxi business as one whose strength rested in their market monopoly in most cities, which led the industry to neglect customer service, giving rise to ride-hailing services such as Uber. On the other side, SpaceX’s initial lack of financial resources resulted in a competitive advantage down the road through innovative production. “The downside of traditional SWOT is that it doesn’t account for the more dynamic forces at work in business,” Brandenburger writes, also mentioning how threats and opportunities can come from within, rather than just relating to external factors, as a typical SWOT analysis often does.

Related resources

Beating Bias: Debiasing Strategies for Everyday Decisions

Just as the SWOT analysis can be used to combat biases such as the confirmation bias, there are other ways to leverage behavioral science and tackle the mental errors that arise in strategic decision-making. This piece outlines some of those additional biases and how to address them.

Why You Might Not be Sticking to Your Plans

While a perfect SWOT analysis may set you up for a lovely strategic plan, you still have to follow through with the plan, which creates a host of additional challenges, such as the planning fallacy. This piece explains the behavioral science behind the concept.

Nyarku, K., & Agyapong, G. (2011). Rediscovering SWOT analysis: The extended version. Academic Leadership: The Online Journal , 9 (2), 28.
Teoli, D., & An, J. (2019). SWOT analysis . StatPearls.
Panagiotou, G. (2003). Bringing SWOT into focus. Business Strategy Review , 14 , 8-10.
Leigh, D. (2009). SWOT analysis. Handbook of Improving Performance in the Workplace: Volumes 1‐3 , 115-140.
Bedeian, A.G., & Wren, D. A. (2001). Most influential management books of the 20th century. Organizational Dynamics , 29 (3), 221-221.
Dess, G. (2018). Strategic Management . United States: McGraw-Hill. p. 73.
Park, J., Konana, P., Gu, B., Kumar, A., & Raghunathan, R. (2010). Confirmation bias, overconfidence, and investment performance: Evidence from stock message boards. McCombs Research Paper Series No. IROM-07-10 .
Lisak Golding, J. (2018, September). These tech companies used swot analysis to come out on top of competitors . Sapphire Strategy. Retrieved from https://sapphirestrategy.com/these-tech-companies-used-swot-analysis-to-come-out-on-top-of-competitors/
Hill, T., & Westbrook, R. (1997). SWOT analysis: it’s time for a product recall. Long range planning , 30 (1), 46-52.
Sharot, T. (2011). The optimism bias. Current biology , 21 (23), R941-R945.
Brandenburger, A. (2019, August). Are Your Company’s Strengths Really Weaknesses? Harvard Business Review . Retrieved from https://hbr.org/2019/08/are-your-companys-strengths-really-weaknesses

Mental Models

Human-Computer Interaction

Gestalt principles.

Machiavellianism

Eager to learn about how behavioral science can help your organization?

Get new behavioral science insights in your inbox every month..

SWOT Analysis Examples: From Small Businesses to Startups and Large Corporations

Jennifer Cameron - Guest Contributor

Lindsay Page

Header image for the blog article "5 Top-Rated Financial Reporting Software for Small Businesses"

Discover how a SWOT analysis is crucial to decision-making for businesses of all sizes.

Knowing where you stand in today’s business landscape is crucial for sustained growth and competitiveness. A SWOT analysis is a strategic tool for businesses to gain insights into their internal and external environments. The acronym stands for:

/ What does SWOT stand for?

S: Strengths

W: Weaknesses

O: Opportunities

What is a SWOT analysis?

A SWOT analysis is a strategic evaluation [ 1 ] used by organizations to review their internal Strengths and Weaknesses alongside their external Opportunities and Threats. This analysis is pivotal for businesses of all sizes as it helps inform decision-making and strategy formulation, ensuring businesses build or maintain a competitive stance.

What are the benefits of a SWOT analysis?

A SWOT analysis isn’t merely a theoretical exercise [ 2 ] —it’s a practical tool with tangible benefits.

Some key advantages of conducting a SWOT analysis include:

Improved decision-making

By delineating strengths, weaknesses, opportunities, and threats, businesses can make well-informed decisions that align with the organization’s objectives. This direct address of internal and external factors significantly reduces risks associated with ill- or misinformed decision-making.

Resource optimization

Identifying strengths and weaknesses helps businesses more efficiently allocate resources, whether those resources are human, financial, or technological, directly addressing the common business challenge of wasted resources.

Improved risk management

Recognizing external threats and internal weaknesses can help companies develop and implement robust risk management strategies and minimize potential adversities.

Enhanced strategic planning

SWOT analysis provides a deeper understanding of the business environment, which is instrumental in developing sound strategic plans. Enhanced planning skills help businesses directly address the challenges of navigating a competitive marketplace.

Increased competitive advantage

Enhanced planning capabilities and an increased competitive advantage can capitalize on strengths and opportunities identified in the analysis, build a stronger position, and become more distinctly competitive.

How to write a SWOT analysis: A 4-step guide with real-world SWOT analysis examples

Running a SWOT analysis is a strategic move for any business that wants a more comprehensive understanding of its internal and external environments. But, how do you perform a SWOT analysis without an example of a SWOT analysis? What real-world aspects of your business should you review? SWOT analysis helps businesses fortify their strategies by leveraging strengths and opportunities while addressing weak spots and mitigating potential threats.

The steps below are followed by real-world SWOT analysis examples using various industries at varying stages of business growth. All of these SWOT analysis examples illustrate a real-world aspect of a business that management should review at that step.

Step 1. Identify your strengths

Evaluate the internal assets and advantages your business holds.

SWOT analysis examples:

A startup SaaS provider has a highly skilled development team, and is working on establishing a reputation for delivering on-time, reliable software solutions.

A small-to-midsize eCommerce business that sells discount products has a dedicated staff and a steady stream of regular customers.

A large manufacturing company employs the brightest engineers and holds patents for several manufacturing tools and machines.

Step 2. Pinpoint your weak spots

Assess the internal limitations and areas that require improvement.

The B2B startup's customer support could be better. But with so few staff members, response time is lagging, leading to a degree of client dissatisfaction.

The midsize B2C eCommerce business experienced a huge growth spurt requiring additional warehouse space and employees, but the growth signals weren't identified in time, which led to dissatisfaction amongst loyal customers.

The corporate manufacturer experienced a series of setbacks, including safety issues that led to injuries and the loss of several major clients.

Step 3: Know how to spot opportunities

Examine the external environment for potential growth prospects.

The market continues trending towards cloud-based options, presenting an opportunity for the SaaS startup to capitalize on the trend and expand to include cloud-based solutions.

Because the initial growth spurt wasn't recognized, it hurt the B2C eCommerce business slightly, giving competitors some market share. Management has decided to rollback growth plans for now, focus on current customer satisfaction, and plan a more executable growth strategy for the future.

The large manufacturer, while having taken a severe blow, spots a current trend that no one else seems to have noticed and begins planning how to capitalize on it and begin recapturing lost contracts and building new relationships.

Step 4: Identify potential external threats

Look into external challenges that might hinder your business's success.

New competitors are emerging with similar tools, aggressive pricing strategies, and more robust customer service, posing a significant threat to the SaaS provider’s market share.

The eCommerce business notices sales are slumping during what's normally its busiest quarter. Established competitors and eCommerce startups could force ownership to close the doors if unique and timely strategies aren't arranged soon.

With the loss of many of its major contracts and a lead funnel that's slowed to a trickle, other large scale corporations are trying to entice the manufacturing company's top engineers to come work at their businesses.

This brief step-by-step guide with SWOT analysis examples offers a structured framework for any business to conduct a thorough SWOT analysis, paving the way for informed strategic planning.

What kind of business should consider performing a SWOT analysis?

A SWOT analysis is a useful tool that’s relevant for businesses regardless of size or industry. Whether a startup, a small to midsize business (SMB), or a large corporation, the insights gathered from a SWOT analysis are invaluable. Here’s a closer look at how a SWOT analysis applies across different business sectors:

Regardless of size or industry, a SWOT analysis can offer a well-rounded understanding of the business environment. It’s particularly beneficial for technology-driven sectors, where success is driven by trends.

Prepare your business for a SWOT analysis

A well-executed SWOT analysis can unveil insightful data, aiding in informed decision-making. Here are some tips an SMB should consider to prepare for and execute a SWOT analysis:

Gather a diverse team with various perspectives.

Collect appropriate data for an accurate appraisal.

Be objective, open to criticisms, and allow diverse opinions.

Use technological tools to collect data, perform analysis, and collaborate.

Stay up to date on market trends.

It’s important to thoroughly prepare before carrying out a SWOT analysis so your insights are more accurate and, therefore, useful. The results of your analysis can inform future strategies and overall planning.

Use SWOT analysis to align your organization with your business goals

A SWOT analysis is a powerful tool for a business eager to carve its niche in a competitive market.

For a closer look at strategic business analysis, consider the following resources:

Sales Trailblazer Shares Her Secrets for Driving Business Growth Through Inclusive Sales

How To Improve Manager Effectiveness

CX Influencer Shares Tips for How To Build Customer Loyalty Today

The path to success is paved with decisions— good decisions . Supplement your SWOT analysis with these insightful resources.

SWOT Analysis Applications: An Integrative Literature Review , Journal of Global Business Insights

SWOT Analysis: A Theoretical Review , DSpace

The Origins of SWOT Analysis , ScienceDirect

Was this article helpful?

About the author s.

Jennifer Cameron is a writer/editor and business process analyst specializing in sales, marketing, and eCommerce topics for B2B and B2C clients. Her work has helped small and midsize business owners on sites such as Capterra and various Fortune 1000 technology vendors.

Lindsay Page is an editor at Capterra. She specializes in editing data-driven research and tech trends reports for small to midsize businesses. She has more than a decade of experience writing and editing for a variety of industries, with particular expertise in cybersecurity, corporate and securities regulation, and finance.

When not editing, Lindsay can be found reading a mystery novel, spending time with her family, and playing competitive tennis. Lots and lots of tennis.

McDonald’s SWOT Analysis

Before we deep dive into the SWOT analysis, let’s get the business overview of McDonald’s. McDonald’s is a fast-food chain founded in 1940 by Richard and Maurice McDonald in San Bernardino, California. Today, it is one of the world’s largest and most well-known fast-food chains, with over 38,000 restaurants in more than 100 countries.

The menu at McDonald’s includes a variety of items such as hamburgers, cheeseburgers, chicken sandwiches, french fries, milkshakes, and soft drinks. In addition to its standard menu, McDonald’s offers limited-time promotional and seasonal items.

McDonald’s has become known for its efficiency and consistency in delivering quick and affordable meals to its customers. It has also faced criticism for the nutritional value and environmental impact of its food and packaging, as well as for the treatment of its workers. In recent years, McDonald’s has made efforts to improve its sustainability practices and introduce healthier menu options.

How does McDonald’s make money from the franchise business model?

Here is the SWOT analysis for McDonald’s

A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture’s success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT Analysis of McDonald’s.

By the way, here is a course that will help you stand out in the world of strategy. The Strategic Thinking program for CxO by Cambridge Judge Business School maps your competitive advantage and teaches advanced techniques to formulate, evaluate, and execute winning strategies. Generate winning strategies and learn how to renew them in times of crisis for a competitive advantage.

SWOT Analysis: Meaning, Importance, and Examples

McDonald’s is a highly successful and iconic company with several strengths, some of which include the following:

Brand Recognition : McDonald’s is one of the most recognizable brands in the world, with its distinctive golden arches logo and well-known slogan, “I’m Lovin’ It.” The company’s branding and marketing efforts have been highly effective in creating a strong and positive image for the brand. Marketing Strategy of McDonald’s that makes you “loving it”
Global Presence : McDonald’s has a vast global footprint with over 38,000 locations in more than 100 countries, allowing the company to reach a broad customer base and take advantage of economies of scale.
Strong Franchise System : McDonald’s operates using a franchise model, allowing it to expand rapidly while minimizing the risks and costs associated with owning and operating its own restaurants. The company’s well-established and highly effective franchise system has helped it maintain consistency and quality across its locations.
Efficient Operations : McDonald’s is known for its highly efficient operations, with streamlined processes and systems that enable the company to serve customers quickly and consistently. This helps to minimize wait times and enhance the customer experience.
Innovation : McDonald’s has been innovative in introducing new products and services to its menus, such as its famous McCafé line of coffee drinks and all-day breakfast. The company has also invested in digital technology and mobile ordering to enhance customer convenience.

Overall, McDonald’s strengths have helped the company become a global leader in the fast-food industry and maintain its position as a brand for many consumers.

While McDonald’s is a highly successful and iconic company, it also has some weaknesses, including:

Health Concerns : McDonald’s has faced criticism for its food’s nutritional value and contribution to health problems such as obesity and diabetes. In recent years, the company has made efforts to introduce healthier menu options and reduce the amount of sodium and saturated fat in its food. Still, these efforts have not entirely resolved the issue.
Negative Public Perception : McDonald’s has also faced criticism for its labor practices, including low wages and poor working conditions for its employees. This has led to a negative public perception of the company and calls for boycotts and protests in some regions. In 2021, McDonald’s cooks and cashiers in 16 cities in the US went on strike to demand the burger giant pay every worker across the McDonald’s system a living wage of at least $15 an hour.
Dependence on Franchisees : While McDonald’s franchise system is a strength, it also means that the company is highly dependent on its franchisees for revenue and growth. This can create challenges in ensuring consistency and quality across all locations and managing franchisee relationships.
Limited Menu Appeal: While McDonald’s is known for its signature items, such as Big Macs and french fries, some customers may view its menu as limited or lacking in variety compared to other fast-food chains.
Environmental Impact : The company has also faced criticism for its environmental impact, including its use of single-use plastics and its contribution to deforestation by sourcing beef and palm oil.

Overall, McDonald’s weaknesses highlight the need for the company to continue to address issues related to nutrition, labor practices, and sustainability while maintaining its market position and profitability.

By the way, to communicate our strategy effectively within the team, we all need a robust collaboration platform. Miro is the leading visual collaboration platform. Build anything together on Miro. It’s free and as easy to use as a whiteboard , but endlessly more powerful. Do use the Miro platform for strong communication within your team.

Opportunities

McDonald’s has several opportunities for growth and expansion, including:

International Expansion : Although McDonald’s already has a global presence, there are still many untapped markets where the company can expand. This includes emerging markets in Asia and Africa, with increasing demand for fast food.
Health and Wellness Trends : As consumers become more health-conscious, there is an opportunity for McDonald’s to introduce new and healthier menu options. The company can also leverage its existing supply chain management and operations strengths to create more sustainable and environmentally friendly menu options.
Digital Technology : McDonald’s has already invested heavily in digital technology, including mobile ordering and payment, which has enhanced the customer experience and streamlined operations. There is further opportunity for the company to innovate in this area and leverage data and analytics to improve its menu offerings and marketing efforts.
Delivery and Convenience : With the rise of third-party delivery services, there is an opportunity for McDonald’s to expand its delivery offerings and increase convenience for customers. This includes exploring partnerships with popular delivery platforms and investing in its own delivery infrastructure.
Partnership and Collaborations : There is an opportunity for McDonald’s to partner with other companies or brands to create unique and innovative menu offerings. This can include collaborations with popular food brands or local chefs, which can help to differentiate the company and appeal to new customer segments.

Overall, McDonald’s has several opportunities to continue to grow and evolve its business while addressing changing consumer preferences and societal trends.

McDonald’s faces several threats that could impact its business, including:

Intense Competition : The fast-food industry is highly competitive, with several major players vying for market share. McDonald’s faces competition from other fast-food chains and emerging trends such as healthier eating options and plant-based diets.
Changing Consumer Preferences : As consumers become more health conscious and environmentally aware, there is a risk that McDonald’s menu offerings may become less appealing. The company must adapt to changing consumer preferences and continue to introduce new and innovative menu options that align with these trends.
Economic Factors : Economic factors such as inflation, changes in consumer spending, and currency fluctuations can impact McDonald’s business. Economic downturns or instability in key markets can also negatively impact the company’s revenue and profitability.
Supply Chain Disruptions : McDonald’s depends on a complex supply chain to source its ingredients and products. Disruptions such as natural disasters, trade disputes, or supply chain breakdowns can impact the availability and cost of key ingredients, negatively impacting the company’s operations.
Regulatory and Legal Challenges : McDonald’s faces regulatory and legal challenges related to labor practices, food safety, and environmental impact. Regulation changes or legal challenges can impact the company’s operations and profitability.

Overall, McDonald’s faces several threats that can impact its business. The company must continue to adapt to changing consumer preferences and societal trends, invest in innovation and technology, and address potential supply chain and regulatory challenges to remain competitive and profitable in the long term.

Check out the SWOT Analysis of Global Businesses

SWOT Analysis of Digital Marketing

SWOT Analysis of an insurance company

SWOT Analysis of a Supply Chain

SWOT Analysis of a Human Resources (HR) department

SWOT Analysis of the call center industry in the US

Top 5 Software for SWOT Analysis

SWOT Analysis of a Sales Territory

SWOT Analysis of the ESG Framework

Type above and press Enter to search. Press Esc to cancel.

Home » blog » Understand SWOT Analysis With 3 Examples – Netflix, Pepsico & Starbucks

Understand SWOT Analysis With 3 Examples – Netflix, Pepsico & Starbucks

Brand marketing is an ancient art form. Did you know ancient civilizations would stamp their goods for customers to guarantee the quality? That was probably the earliest form of cultivating brand loyalty.

Then came the printing press. With it, we entered the age of pamphlets, posters and paper-centric information.

With mass media, brands made an appearance everywhere. Outside your window on a billboard, next to your favorite newspaper crossword and in between your favorite TV show.

If you follow the trail, brands go where the customers are. When the consumer moved online, all companies followed suit. We are now in the age of digital marketing. It’s an advanced form of the marketing industry that uses sophisticated techniques and technology to reach the target customer. Unlike earlier, you no longer have to shout from the rooftops about your brand. Now you can quietly slip into someone’s email or cleverly catch their attention through social media algorithms. In 2022, five billion people were on the internet. With digital marketing, not only can you effectively reach out to this massive number, but you can also personalize the message to have a significant impact. It also helps to perform a SWOT analysis in marketing as it always helps to understand your company better and enhance productivity.

What Is Digital Marketing?

Digital marketing is a form of online communication that uses different electronic media to promote brands and spread messages. People are constantly on their phones, tablets or computers. Look around, and you’ll see eyeballs glued to phone screens everywhere. That tiny piece of digital space is prime marketing real estate. You can use it to showcase ads, banners, links, direct emails and social media posts that are tailor-made to appeal to the customer. It’s an exciting opportunity to be creative yet precise. You can fine-tune your strategy to appeal to specific consumers. It is a fantastic way to generate interest in your products among potential customers as you create a unique connection.

Share This Event!

How to Become a Certified Digital Marketer in 2024?

Top 10 Benefits of Taking Up a Digital Marketing Course in 2024

Top 10 Digital Marketing Courses In Chennai – Fees, Location, Syllabus etc.

Join our elite club of 50,000 students upskilling in IMS Proschool Right Now

IMS Proschool – Shaping Careers, Building Lives Upskilling Professionals and Enhancing Competencies

IMS Proschool is the market leader in delivering exceptional career-building courses using intensive professional certifications.

Mumbai 9867958900

Thane 9867842800

Sion 9619207323

Navi Mumbai 9867842800

Pune 8454988892

Delhi – Connaught Place 7304957442

Delhi – Pitampura 9136687002

Gurgaon 7738674974

Noida 9136687679

Lucknow 7389180009

Kolkata 8591956474

Hyderabad 9136908879

Bangalore 7892295842

Kochi 9645629999

Chennai 9600137479

Online 9867994700

[email protected]

Monday – Sunday: 10:00 AM – 07:00 PM

Partner with us

Start a Centre
Corporate Training
Skill Yatra
Terms & Conditions
Privacy Policy
Excel Financial Model
Brochures & Ebooks

Join Over 50,000 Students Enjoying IMS Proschool E-Learning Education Now

Join Over 500,000 Students Enjoying IMS Proschool E-Learning Education Now

Join Over 500,000 Students Enjoying IMS Proschool E-Learning Education Now DBM

WhatsApp us

Enquiry Form

The Open University
Explore OpenLearn

Get started
Create a course
Free courses
Collections

My OpenLearn Create Profile

Personalise your OpenLearn profile
Save Your favourite content
Get recognition for your learning

Already Registered?

Text and media area

SWOT Analysis

Support your understanding of the SWOT Analysis to...
1 When to use a SWOT analysis
2 Exploring the environment of a project
3.1 Strengths and weaknesses
3.2 Opportunities and threats
4 Completing the SWOT analysis

5.1 SWOT analysis: a case study

Self Assessment Questions
End of Module Quiz
References and acknowledgements
Return to the DIY Learn home page
SWOT Analysis quiz
DIY Toolkit

Download this course

Download this course for use offline or for other devices.

The materials below are provided for offline use for your convenience and are not tracked. If you wish to save your progress, please go through the online version.

About this course

2 hours study
0 Level 0: Beginner
Course description

Course rewards

Free Statement of Participation on completion of these courses.

Earn a free digital badge if you complete this course, to display and share your achievement.

If you create an account, you can set up a personal learning profile on the site.

Read through the case study and SWOT Analysis Template, then try to complete the activity below.

Case study 1: Syed’s business opportunity

Syed runs his own enterprise in an area on the outskirts of Dhaka, Bangladesh. He manages a collective of people with disabilities who make Bangladeshi puppets in a traditional style, mainly selling to tourists through local shops, and pays them a basic salary as well as a profit share. The puppets are all made to Syed’s own designs, and are quite different to the standard items in most tourist stores. His quirky designs and their popularity with shoppers have come to the attention of Muhammad, who runs a relatively large factory producing puppets and other tourist-friendly wares. Muhammad approaches Syed to suggest that he buy his enterprise, including his designs, and that Syed and his employees all come and work at Muhammad’s factory. He is offering a lot of money, and Syed doesn’t know whether he wants to maintain his independence or go for the security offered by a lump cash sum and guaranteed employment. He uses a SWOT analysis to take a snapshot of his current situation and help him consider the decision:

Diagram of a SWOT analysis tool with 4 boxes with hand written bullet points in each section. Box 1: Strengths, Box 2: Weaknesses (with Internal Factors text in between connecting both boxes), Box 3: Opportunities, Box 4: Threats (with External Factors text in between connecting both boxes).

Looking at the case study above, including Syed’s SWOT analysis, imagine you are helping Syed make his decision. What points would you highlight? Would you recommend him to sell to Muhammad? Make some notes in answer to this question in the text box below.

Syed has provided some interesting information in his SWOT analysis. By taking a realistic look at his business as it is, he can decide what is most likely to make sense for its future. There’s no absolute right or wrong here (there rarely is in this sort of decision-making), but based on the information given I would advise Syed not to sell. These are the key points I would highlight:

Syed has a lot of strengths, mainly based on the very fact that the organisation is small and under his management.
Being dependent on one supplier is always a risk, especially now they are becoming unreliable. However, there’s no reason he couldn’t identify other suppliers and shop around to get a good deal and spread the risk by regularly using two or three.
Syed has said that cash flow is a weakness that stops him from expanding. It sounds like now would be a great time to explore the financial support from the new NGO, as this would enable him to respond to some of the other opportunities (new shops and the potential for export) at his own pace and under his control.
If he expands, perhaps he could take on some new employees part time? If he has, say, four employees who work half time rather than two who work full time, he has spread the risk of his dependency – if someone is ill or leaves, one or more of the others might be able to increase their hours.
If he agrees to Muhammad’s offer, he will lose his independence and have to commute to a different workplace. Will the people he works with be able to commute, or in practical terms will this mean they become unemployed (and how might he feel about that)? More people will see and buy his designs, but will his name or mark be on them?
What if he explores the opportunities for expansion that the SWOT analysis has highlighted, and then considers whether the offer looks tempting?

Finally, I would perhaps suggest that this isn’t a yes or no decision, and there might be a way that Syed could maintain all his strengths but still work in partnership with Muhammad. He could create some designs especially for Muhammad’s factory, and/or draw on some of his resources in exchange for design expertise. At this point, a SWOT analysis of the potential partnership could be a useful decision-making tool.

5 Using the SWOT analysis for decision making

For further information, take a look at our frequently asked questions which may give you the support you need.

Have a question?

If you have any concerns about anything on this site please get in contact with us here.

Report a concern

Home
Student Scholarship
Honors Theses

Case Study of TATA Motors: SWOT Analysis and Strategy Suggestions

Collections

entitlement

Export search results

The export option will allow you to export the current search results of the entered query to a file. Different formats are available for download. To export the items, click on the button corresponding with the preferred download format.

By default, clicking on the export buttons will result in a download of the allowed maximum amount of items.

To select a subset of the search results, click "Selective Export" button and make a selection of the items you want to export. The amount of items that can be exported at once is similarly restricted as the full export.

After making a selection, click one of the export format buttons. The amount of items that will be exported is indicated in the bubble next to export format.

Use Our Resources and Tools to Get Started With Your Preparation!

Swot analysis, the swot analysis is an extremely useful tool to assess a company’s strategic positioning, use a swot analysis to determine whether a company’s key strategies are aligned with its objectives and what obstacles have to be overcome.

Internal positive factors are called S trengths, internal negative factors are called W eaknesses, external positive factors are called O pportunities, and external negative factors are called T hreats. This framework is seldom used in the day-to-day work of MBB consultants because it overlaps between many categories (for example, customers putting pressure on prices can be seen as either an external threat or an internal weakness of the customer base). However, in case interviews , the SWOT analysis can still be used as a tool to segment influences into a 2x2 matrix .

We will now go over each of the four branches in more detail and provide examples.

Strengths (Internal positive factors)

The strengths of a company are its resources and capabilities, for example:

Image/Goodwill
Financial resources
Access to networks, natural resources

Weaknesses (Internal negative factors)

Weaknesses can usually be viewed as the absence of specific strengths or things that are done better by competitors, for example:

Poor reputation
High cost structure
Lack of customer/employee loyalty
Lack of innovative R&D
Lack of access to key distribution channels/resources/trade associations

Opportunities (External positive factors)

Opportunities reveal new options for growth in profits including:

New technologies
Removing barriers to trade
Loosening of regulations
Entry into new markets

Threats (External negative factors)

External changes that will have a negative effect on growth and profit are threats, for example:

A shift in customers’ needs, expectations, and taste away from the core of the companies products
New regulations
Neutral factors like this can also be opportunities if they are beneficial to the company
Especially with external factors like these, it is important to set it into the context of the respective company
New market entrants/low barriers to entry
Emergence of a substitute product (see Porter's Five Forces )

Once you have completed the SWOT analysis, draw insights into the matrix

After lining out the gathered information in a simple 2x2 Matrix , step further by identifying strategies that address the following questions:

How to use strengths to take advantage of the opportunities.
How to take advantage of the strengths to avoid threats.
How to use opportunities to overcome weaknesses.
How to minimize weaknesses and avoid them.

Key takeaways

The SWOT matrix is a simple analysis of internal strengths and weaknesses as well as external opportunities and threats.
Opportunities can be seen as threats and vice versa.
SWOT matrices don’t show the interrelationship between internal and external factors.
The SWOT analysis itself does not allow us to make strategic decisions but can be used for meaningful insights.

SWOT Analysis of IKEA 2023

This is IKEA International Group SWOT analysis. For more information on how to do a SWOT analysis please refer to our article.

Company Overview

You can find more information about the business in its official website or Wikipedia’s article .

IKEA SWOT Analysis

Customer knowledge. One of the key competitive advantages IKEA has is its extensive knowledge about the customers. The company understands the purchasing factors that influence customers to buy and implements the best practices to induce that decision. IKEA offers low prices and a huge range of products. Designers constantly introduce new design products that look stylish in the eyes of customers. All the products are designed so it would be easy to transport and assemble. Moreover, the company offers the widest product range and positive shopping experience. All of these factors are aligned with what customers want and need and which results in higher sales. Without such extensive customer knowledge and best practices to benefit from that knowledge, IKEA would be unable to outcompete its current competitors.
Constantly using innovations to drive costs down. Low prices are the cornerstone of IKEA business idea and the the company always try to do things as efficient and cost-effective as possible. To drive costs down all the time, the company must find new and innovative ways to do that and to incorporate them in its businesses model. The business’ innovations include new materials that contribute more to sustainable environment and are less costly or using newest ways of packaging, handling and transporting materials.
Supply chain integration. IKEA is committed to long lasting relationships with its suppliers. In this way, the company can order large volumes and benefit from lower prices and greater quality while suppliers are assured of guaranteed orders. IKEA sources its materials close to suppliers to reduce transporting costs. The company also uses IWAY approach to closely integrate suppliers with its supply chain. All the efforts of closely integrating supply chain results in lower costs and a competitive advantage.
Brand reputation and market presence. According to Interbrand, IKEA is the most valuable furniture retailer brand in the world, valued at nearly $US 12.8 billion in 2012. The business operates 332 stores in 38 countries and is present in the major world markets. More than 600 million customers visit IKEA stores every year. Worldwide market presence and strong brand reputation ensures that customers will often choose IKEA over its competitors.
Diversified product portfolio. Unlike IKEA’s largest competitors, the company has fairly diversified businesses. In addition to its furniture products, the company operates restaurants, houses and flats. Although, firm’s main business is designing, manufacturing and selling furniture it is not so affected by the changing forces in this market as other furniture retailers.
Negative publicity. The company has been criticized many times for issues like poor treatment of employees, questionable advertising practices or lobbying government authorities. Negative publicity decreases brand reputation and customer loyalty.
Low quality of products and services. IKEA is unable to find compromise between continuous cost reductions while maintaining the same quality of products. According to UK Customer Insights report on IKEA by Verdict, IKEA’s customers are less satisfied with its product and services quality than the average customer in UK buying at other stores. Firm’s cost reductions lead to decreasing product quality, which was followed by higher number of products returned and damaged brand.
Standard products. IKEA’s main competitive advantage derives from low costs, which in part are achieved due to standardized products. Standardized products attract fewer customer segments. Therefore, the business inability to offer better quality more customized products allows its competitors to fill that niche and fortify their position in it.

Opportunities

Further expansion into developing economies. Retail markets grew by at least 5% on average in emerging markets in the last year, opening huge opportunities for IKEA’s revenue growth. The company currently operates in most of the developed economies but hasn’t firmly stepped into developing economies, except China. There are great opportunities for IKEA to expand into Brazil, Mexico, Indonesia and Malaysia to increase its presence in these markets to sustain future growth.
Growing online sales. Online retail sales account for 17% and 4% of total retail sales in UK and US respectively. Online sales grow constantly and with 870 million visitors to its website IKEA could exploit this opportunity and benefit from increased sales and lower costs.
Expansion to growing grocery market. The current trend of eating healthier food has resulted in higher demand for grocery products in many developed economies. IKEA has an opportunity to expand its grocery business by introducing more grocery stores in its current retail places. The company is already successfully managing its food outlets, so this expansion opportunity would be well aligned with the current operations.
Intensifying competition. Many low cost retailers such as Walmart, ASDA or Tesco are entering homeware specialists market where IKEA operates. These large retailers have similar specifics as IKEA, including low costs, well managed supply chain and huge market presence and can easily gain some market share from IKEA.
Growth of average consumer income. Growth of average consumer income means that people buy less low price and low quality products, which is exactly what IKEA offers in its stores. With the rising income people will be less attracted to IKEA and will turn to retailers that offer higher quality homeware products.
IKEA (2013). About IKEA. Available at: http://www.ikea.com/ms/en_GB/about_ikea/index.html
The Times 100 (2012). Business Case Studies. Ikea case study. Available at: http://businesscasestudies.co.uk/ikea/swot-analysis-and-sustainable-business-planning/strengths.html#axzz2VB9TPpjz
Interbrand (2012). Best Global Brands in 2012. Available at: http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012.aspx
Wikipedia (2013). IKEA. Available at: http://en.wikipedia.org/wiki/IKEA
IKEA Mission Statement
SWOT Analysis of Walt Disney 2023
SWOT Analysis of Blackberry 2023
SWOT analysis of BMW 2023
SWOT Analysis of eBay 2023

Entertainment

How to Watch
My Portfolio
Latest News
Stock Market
Premium News
Biden Economy
EV Deep Dive
Stocks: Most Actives
Stocks: Gainers
Stocks: Losers
Trending Tickers
World Indices
US Treasury Bonds
Top Mutual Funds
Highest Open Interest
Highest Implied Volatility
Stock Comparison
Advanced Charts
Currency Converter
Basic Materials
Communication Services
Consumer Cyclical
Consumer Defensive
Financial Services
Industrials
Real Estate
Mutual Funds
Credit cards
Balance Transfer Cards
Cash-back Cards
Rewards Cards
Travel Cards
Personal Loans
Student Loans
Car Insurance
Morning Brief
Market Domination
Market Domination Overtime
Opening Bid
Stocks in Translation
Lead This Way
Good Buy or Goodbye?
Fantasy football
Pro Pick 'Em
College Pick 'Em
Fantasy baseball
Fantasy hockey
Fantasy basketball
Download the app
Daily fantasy
Scores and schedules
GameChannel
World Baseball Classic
Premier League
CONCACAF League
Champions League
Motorsports
Horse racing
Newsletters

New on Yahoo

Privacy Dashboard

Yahoo Finance

Decoding roblox corp (rblx): a strategic swot insight.

Roblox Corp showcases robust user engagement with significant revenue growth.

Despite revenue increase, operational costs lead to a net loss, highlighting scalability challenges.

Opportunities for expansion in international markets and advertising business.

Threats include reliance on third-party platforms and potential regulatory changes.

Roblox Corp ( NYSE:RBLX ), an innovative force in the online video game industry, filed its 10-Q on May 9, 2024, revealing a mix of financial triumphs and challenges. The company reported a revenue increase to $801.3 million, up from $655.3 million in the previous year, marking a 22% growth. However, the cost of revenue and expenses also rose, leading to a net loss of $271.9 million, slightly higher than the previous year's $269.9 million. This financial overview sets the stage for a deeper SWOT analysis, providing investors with a comprehensive understanding of Roblox Corp's strategic positioning.

Warning! GuruFocus has detected 5 Warning Signs with RBLX.

Engagement and Monetization: Roblox Corp's strength lies in its highly engaged user base and its unique monetization model. The platform's revenue growth is a testament to its ability to attract and retain users, with daily unique paying users increasing from approximately 812,000 to 914,000 year over year. The company's virtual currency, Robux, is a pivotal element of its revenue, demonstrating the effectiveness of its in-game economy. The robust developer exchange program further incentivizes content creation, fostering a vibrant ecosystem where developers can monetize their creations and contribute to the platform's diversity and appeal.

Innovative Platform: The company's proprietary technology, Roblox Studio, empowers users to become creators, driving the platform's content variety and freshness. This not only enhances user engagement but also reduces the company's reliance on in-house game development. Roblox's continuous investment in research and development, amounting to $362.1 million, underscores its commitment to innovation and platform enhancement, ensuring it remains at the forefront of the industry.

Operational Losses: Despite revenue growth, Roblox Corp's operational costs have escalated, resulting in a net loss. The company's total expenses exceeded its revenue, with significant investments in infrastructure, trust & safety, and research & development. This raises concerns about the company's current scalability and profitability model. While these investments are crucial for long-term growth, they strain the company's financials in the short term, necessitating a strategic review of cost management and operational efficiency.

Dependence on Third-Party Platforms: A considerable portion of Roblox Corp's revenue comes from Robux sales through third-party app stores, such as Apple's App Store and Google Play. This dependence exposes the company to the risks associated with policy changes or disputes with these platforms, which could disrupt its operations and revenue streams. The company must navigate these relationships carefully while exploring alternative distribution channels to mitigate this risk.

Opportunities

International Expansion and Advertising: Roblox Corp has significant opportunities to scale its advertising business and expand its international user base. With plans to create new revenue streams and target demographics, the company is well-positioned to capitalize on the global gaming market's growth. Its commitment to providing a safe and civil online environment, especially for children, enhances its appeal in diverse markets and can serve as a unique selling proposition in its international growth strategy.

Platform Enhancements: The company's investment in developing new features and functionality positions it to attract and retain a broader user demographic. By focusing on innovation and the user experience, Roblox Corp can leverage its platform to create additional engagement opportunities, such as virtual events and educational experiences, further differentiating itself from competitors and driving user growth.

Regulatory Changes: Roblox Corp operates in a rapidly evolving regulatory landscape, with potential changes in laws related to virtual currencies, privacy, and online safety posing significant threats. The company must remain vigilant and adaptable to comply with new regulations, which could impact its business model and operations. Proactive engagement with policymakers and investment in compliance infrastructure are essential to mitigate these risks.

Market Competition: The online gaming industry is highly competitive, with numerous players vying for user attention. Roblox Corp must continuously innovate and enhance its platform to maintain its competitive edge. The threat of new entrants and existing competitors, some of whom may have greater resources, requires Roblox to stay ahead of industry trends and user preferences to sustain its market position.

In conclusion, Roblox Corp ( NYSE:RBLX ) presents a compelling case of a company with strong user engagement and innovative technology, yet facing operational losses and external dependencies. Its opportunities for international expansion and platform enhancements are promising, but regulatory challenges and market competition loom as potential threats. Investors should weigh these factors carefully when considering Roblox Corp's prospects for sustainable growth and profitability.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus .

IMAGES

Case Study SWOT Analysis on Amazon’s Competitive Advantage & Its
Utilizing SWOT In A Business Case
SWOT Analysis Chart
A comprehensive guide to creating your personal SWOT Analysis
Free SWOT Analysis Template Ppt Word Excel
How To Do A Swot Analysis On A Case Study

VIDEO

SWOT Analysis
B Ed Practical Examination Record Analysis Case Study & Psychology Record in Tamil
استراتيجية تحليل SWOT ANALYSIS الرباعي
12th Accountancy Chapter 8 (Financial Statements Analysis )Case Study
Analyzing SWOT: Uncovering Strengths, Weaknesses, Opportunities, and Threats
SWOT Analysis, Situational Analysis using SWOT approach, Strategic Management, aktu mba notes

COMMENTS

3 Great SWOT Analysis Examples with Real Companies
Learn how to perform a SWOT analysis with three practical examples from The Coca Cola Company, Nike, and Starbucks. Find out their strengths, weaknesses, opportunities, and threats, and how to use them for your own business strategy.
SWOT Analysis Case Studies
Learn how to use the SWOT analysis method to evaluate the internal and external factors of a company or a project. See examples of SWOT diagrams and strategies for different scenarios and industries.
SWOT Analysis: How To Do One [With Template & Examples]
1. Download HubSpot's SWOT Analysis Template. There's no need to start from scratch for your analysis. Instead, start by downloading a free, editable template from HubSpot. Feel free to use the model yourself, or create your own as it suits your needs. Download a free, editable SWOT analysis template. 2.
SWOT Analysis: Examples and Templates [2024] • Asana
A SWOT analysis is a technique used to identify strengths, weaknesses, opportunities, and threats for your business or even a specific project. ... Use a structured system such as a business case, project plan, or implementation plan to outline what needs to get done—and how you plan to do it. Read: 11 project templates to start your work on ...
What Is A SWOT Analysis? An Explanation With Examples
A SWOT analysis is a high-level strategic planning model that helps organizations identify where they're doing well and where they can improve, both from an internal and an external perspective. SWOT is an acronym for "Strengths, Weaknesses, Opportunities, and Threats.". ‍. SWOT works because it helps you evaluate your business by ...
Walmart SWOT Analysis & Recommendations
In this SWOT analysis, these disruptions are a threat to the stability of supply chains and, consequently, the stability of Walmart's operations, which depend on importing low-cost goods. Labor market disruptions are linked to social trends that affect the availability and willingness of people to work for companies, like Walmart.
SWOT Analysis With SWOT Templates and Examples
Key Takeaways: SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats. A "SWOT analysis" involves carefully assessing these four factors in order to make clear and effective plans. A SWOT analysis can help you to challenge risky assumptions, uncover dangerous blindspots, and reveal important new insights.
SWOT Analysis: Articles, Research, & Case Studies
by Sarah Jane Gilbert. These tools can help managers make informed decisions on market analysis, breakeven analysis, customer lifetime value, profit and pricing, and analyzing the competitive environment. Interview with Tom Steenburgh. Key concepts include: Immense changes in marketing are driving an increasing need for data analysis.
SWOT Analysis
An alternative account goes back earlier than the '60s, suggesting SWOT analysis originated from case study analyses at the Harvard Business School in the early '50s, where Professors George Albert Smith Jr and C. Roland Christensen were exploring organizational strategies in relation to their environment. 3 By the early 1960s, business ...
SWOT Analysis Explained
Use-Case Examples. You can use a SWOT analysis for a number of activities, from deciding whether to invest in a business to helping an individual perform better at a non-profit. The use of SWOT is ...
SWOT Analysis Examples: From Small Businesses to Startups
Step 4: Identify potential external threats. Look into external challenges that might hinder your business's success. SWOT analysis examples: New competitors are emerging with similar tools, aggressive pricing strategies, and more robust customer service, posing a significant threat to the SaaS provider's market share.
Netflix SWOT Analysis
A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture's success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT ...
PDF Strategic Analysis Of Starbucks Corporation
3.2) Starbucks SWOT Analysis: Strengths: Strong Market Position and Global Brand Recognition: Starbucks has a significant geographical presence across the globe and maintain a 36.7% market share in the United States (Appendix 1) and has operations in over 60 countries.
Utilizing SWOT In A Business Case
The SWOT analysis is a simple, structured approach for analyzing businesses. The framework is widely used and applicable in numerous scenarios. It's useful when operating a business, acting as an advisor, or preparing for case interviews. Apply it to your own business situation and let us know how it benefits you!
McDonald's SWOT Analysis
A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture's success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT ...
Applying SWOT Analysis: Case Study
For creating our case study in this lesson, let's take a look at McDonald's, which, it's safe to say, is one of the most popular organizations in the world, and analyze it using a SWOT analysis.
Understanding SWOT Analysis with a Case Study
Learn how to use SWOT analysis to create a digital marketing strategy for your business. See how Netflix, PepsiCo and Starbucks applied SWOT to their online campaigns.
5.1 SWOT analysis: a case study
Read through the case study and SWOT Analysis Template, then try to complete the activity below. Case study 1: Syed's business opportunity. Syed runs his own enterprise in an area on the outskirts of Dhaka, Bangladesh. He manages a collective of people with disabilities who make Bangladeshi puppets in a traditional style, mainly selling to ...
(PDF) CASE STUDY OF COCA COLA'S 4PS, SWOT ANALYSIS ...
reputation by the powerful SWOT (Strengths, W eaknesses, Opportunities, and Threats) analysis in combination with PEST (Political, Economic, Social and Technological). Internal Business Analysis ...
Case Study of TATA Motors: SWOT Analysis and Strategy Suggestions
Abstract. According to the case study, the company, TATA Motors wants to have a multiband approach to competing in the global car industry. Based on the case-study, I analyzed the company as a whole in the global car industry and based on my findings figured out their SWOT (strengths, weaknesses, opportunities and threats).
SWOT Analysis in Case Interviews
The SWOT matrix is a simple analysis of internal strengths and weaknesses as well as external opportunities and threats. Opportunities can be seen as threats and vice versa. SWOT matrices don't show the interrelationship between internal and external factors. The SWOT analysis itself does not allow us to make strategic decisions but can be ...
IKEA SWOT Analysis 2023
Strengths Weaknesses; 1. Customer knowledge 2. Constantly using innovations to drive costs down 3. Supply chain integration 4. Brand reputation and market presence
Decoding Roblox Corp (RBLX): A Strategic SWOT Insight
Roblox Corp ( NYSE:RBLX ), an innovative force in the online video game industry, filed its 10-Q on May 9, 2024, revealing a mix of financial triumphs and challenges. The company reported a ...

3 Great SWOT Analysis Examples with Real Companies

How do you write a good SWOT analysis?

What is a SWOT analysis tool?

Why is SWOT analysis important?

What is the most difficult part of the SWOT analysis?

animitevabg

Join the discussion Cancel reply

The Future of Property Listings: How Tech is Changing the Game

VPN Protocols: A Comprehensive Analysis

8 Reasons To Hire A Design Agency

How Can A Startup Get Its Own Office Space In New Zealand

The Vital Importance of AI in Marketing and Business

Recent Posts

Recent Comments

SWOT Analysis Case Studies

What is a SWOT model

Internal Factors (Strengths and weaknesses)

External Factors (opportunities and threats)

What is a Competitive Advantage?

SWOT Analysis Strategies

Steps for Conducting SWOT Analysis

Case Study 1: Amazon SWOT Analysis

Amazon Detailed SWOT Analysis

Opportunity

Amazon – Recent Development

Case Study 2: Starbucks SWOT Analysis

Starbucks Detailed SWOT Analysis

Opportunities

Case Studies 3: Coca-Cola SWOT Analysis Example

Coca-Cola Detailed SWOT Analysis

Formulating Actions for SWOT Analysis

SWOT Analysis: How To Do One [With Template & Examples]

What is a SWOT analysis?

Free SWOT Analysis Template

Opportunities

Importance of a SWOT Analysis

SWOT gives you the chance to worry and to dream.

SWOT forces you to define your variables.

SWOT allows you to account for mitigating factors.

SWOT helps you keep a written record.

Parts of a SWOT Analysis

Free Market Research Kit

SWOT Analysis Internal and External Factors

Internal Factors

External Factors

How do you write a good SWOT analysis?

1. Download HubSpot's SWOT Analysis Template.

3. Identify your objective.

4. Identify your strengths.

5. Identify your weaknesses.

6. Consider your opportunities.

7. Contemplate your threats.

SWOT Analysis Chart

SWOT Analysis Examples

Apple’s SWOT analysis

Starbucks SWOT Analysis

Restaurant Small Business SWOT Analysis

Local Boutique SWOT Analysis

How to Act on a SWOT Analysis

Take advantage of your strengths.

Address your weaknesses.

Make note of the threats.

When to Use a SWOT Analysis

Don't forget to share this post!

25 Tools & Resources for Conducting Market Research

What is a Competitive Analysis — and How Do You Conduct One?

Market Research: A How-To Guide and Template

TAM SAM SOM: What Do They Mean & How Do You Calculate Them?

How to Run a Competitor Analysis [Free Guide]

5 Challenges Marketers Face in Understanding Audiences [New Data + Market Researcher Tips]

Causal Research: The Complete Guide

Total Addressable Market (TAM): What It Is & How You Can Calculate It

What Is Market Share & How Do You Calculate It?

3 Ways Data Privacy Changes Benefit Marketers [New Data]

CAPABILITIES

Featured Reads

SWOT analysis: Examples and templates

What is a SWOT analysis?

What does SWOT stand for?

Example SWOT strength: