Definition of SWOT

Definition of SWOT: What is SWOT? and the purpose of the SWOT analysis

Posted on

Definition of SWOT

What is the understanding of SWOT?

The definition of SWOT is a comprehensive audit and competitive analysis that analyzes the strengths, weaknesses, opportunities, and threats faced by a business.

This SWOT analysis can help businesses to identify something that is done well, so they can choose the right thing to face the competition.

This analysis is usually used to assess four different factors related to any situation.

  • Strengths
  • Weaknesses (Weakness)
  • Opportunities
  • Threats (Threats)

All of the above factors can be a person’s situation, organization or work. It’s just that there are few limitations regarding the application of SWOT.

Some things that can affect the SWOT component can be divided into 2 (two), namely:

swot analysis of a person

1. Internal Factors: Strengths and Weaknesses (Weaknesses)

In the SWOT analysis, strengths and weaknesses are considered as internal factors that can be fully controlled by the organization itself.


Quality human resources owned are Strengths while capital constraints are Weaknesses.

2. External factors: Opportunites (opportunities) and Threats (Threats)

Opportunities and threats in SWOT analysis are considered as external factors that may or may not be controlled by the organization.


When we are able to establish good relationships with suppliers, it will certainly be a good opportunity to obtain products while the emergence of new competitors will be a threat to your business.

SWOT analysis will thoroughly analyze each element then the company must manage and develop strengths and opportunities. While weaknesses and threats should be eliminated as much as possible.

The purpose of the SWOT analysis

The purpose of conducting a SWOT analysis is to help someone to understand the business they have by presenting the company’s operating point of view from a different angle.

In a new business, this analysis is very important to do to help the business planning process. In other words, the SWOT analysis helps new businesses on the right track.

Within the organization, SWOT analysis is a framework that helps analyze all internal and external factors that can affect planning.

This planning can be in the form of new products, projects or strategies that will be carried out by the company.

By using a simple and precise method, SWOT analysis can help companies understand the dynamics that occur with the situation.

This analysis has been adopted by a number of companies over the years and many examples of SWOT analysis have been successfully used as company guidelines.


Based on the results of the SWOT analysis, the company can determine whether a new project can be realized or not.

If the project is realized, the company must prepare additional resources and actions to make the plan successful.

All that is included in this analysis are physical resources, human resources, experience, competitors of market movements, etc.

The key to the success of a SWOT analysis is that this analysis is carried out honestly and unbiased so that you cover your strengths and also do not hide weaknesses.

This analysis is entirely subjective, therefore the SWOT analysis process is usually carried out by the management team in a brainstorming session.

Based on the explanation above, the SWOT analysis has the benefit of analyzing strategies in a company or organization.

This analysis can help to minimize all company weaknesses and threats that may arise in the future.

Such is the explanation of the definition of SWOT: What is SWOT? and Objectives of the SWOT Analysis.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.