Strength & Weakness Quantitative Technique

SWOT analysis assesses a project's strengths, weaknesses, opportunities and threats to identify the factors that impact its outcome. Techniques for quantifying strengths and weaknesses include listing all the positive and negative aspects (including scope) that can impact achieving the desired end. Use SWOT analysis to ensure your company's strategy is sound.

History

Albert Humphrey, a management consultant who specialized in organizational management, devised the SWOT analysis technique at Stanford Research Institute in the 1960s. Today, not only large corporations but also nonprofit and government agencies employ SWOT analysis. An enhanced method, known as the Six Forces Model, further helps to quantify competition, buyers and suppliers.

Function

Identify strengths and weaknesses to assess whether the desired end state is possible. If it is not, revise your objective to reflect an attainable goal. Use SWOT analysis in strategic planning, crisis management and feasibility studies. Apply SWOT analysis techniques in academic environments for developmental studies. Use SWOT analysis to figure out how to exploit each strong point and minimize each disadvantage.

Benefits

SWOT analysis techniques facilitate decision making by classifying and categorizing factors that influence the outcome of activities. Identifying the strengths or weaknesses of your product, price, place of sale and promotion strategy in concert with listing economic, technological and legal factors help you identify your competitive position. Quantitative data help you to justify how important each activity is to your company.

Types

SWOT analysis is typically identified as one of two types: planning or marketing. Corporate planning involves setting objectives, assessing abilities, analyzing current strategies, developing new strategies or preparing for different scenarios that might require intervention. This type of SWOT analysis is typically conducted by project-management teams. Marketing analysis, on the hand, involves conducting research to gather opinions, for example, through surveys. These are usually completed by customers or potential clients. The quantifiable results can reveal trends or validate hypotheses you have about how to market your product.

Considerations

Form a cross-functional team to conduct your planning SWOT analysis. Diverse viewpoints produce the best results and prevent closed thinking. Resist the temptation to abandon your objectives as unattainable without close scrutiny. Think creatively to use the data your analysis produces. Match strengths to opportunities when conducting a marketing SWOT analysis. Find innovative ways to convert threats and weaknesses into strengths. Use SWOT analysis to find new markets while avoiding markets for which your company is ill-suited.

References

• Fundamentals for Founders: The Practical Guide to Kick-Starting Your Business; Dan Hou and Peter Burchhardt; 2009
• SWOT Analysis I: Looking Outside for Threats and Opportunities; Harvard Business School Press; 2009
• Strategic Management and Business Analysis; David Williamson, Peter Cooke, Wyn Jenkins, and Keith Michael Moreton; 2003