SWOT analysis is also called as SWOT matrix which is a structured method of planning to find out the strengths and weaknesses, threats and opportunities in projects. This SWOT analysis or SWOT matrix is also used in business ventures. SWOT analysis is applied on products, places, industries and persons, which means that this analysis can be applied on anything and anyone. The objective and the factors- both internal and external are to be specifies in the analysis. These objectives and factors are considered in business ventures or in project. Internal factors and external factors are those which affect the objectives in both positive and negative ways. Objectives are set after performing the SWOT analysis or SWOT matrix. Doing so will help the industry or person to achieve their goals and targets easily.
Let’s define the following terms used in SWOT analysis:
- Strength: the strengths are the objectives of the project that are advantageous over other similar and existing projects. The characteristics are defined as strengths.
- Weaknesses: weaknesses are the disadvantages that the project has over the existing and similar projects. These are also the characteristics of the business.
- Opportunity: opportunities are the factors that could be exploited by the project to convert them into advantages.
- Threats: threats are the factors that will create troubles and problems in the business or projects.
Doing SWOT analysis before designing will ensure that the project has successfully established the objectives that need to be satisfied. After considering the SWOT factors, the decision makers should confirm whether the objectives are attainable or not. When you find the objective defined is not attainable, you should remove it and should consider another one. This process will be repeated until all objectives are verified. When performing SWOT analysis, users will question themselves so that they can get some meaningful information for each SWOT category.
SWOT analysis can be successfully achieved with the help of matching and converting technique. In matching step you will match the strengths with opportunities and in conversion stage you will convert the weaknesses and threats into strengths and opportunities. If you cannot convert them then try to minimize them.
Internal and external actors are the important factors for SWOT analysis. They are helpful in achieving the goals. The internal and external factors can be defined as following:
- Inter factors: internal factors in a project are the strengths and weaknesses in the business or person.
- External factors: external factors are those that can become opportunities or threats to the system or person.