SWOT Analysis with Strategic Action Items

SWOT Framework:
STRENGTHS (Internal Positives)
- [List 3-5 key advantages]

WEAKNESSES (Internal Negatives) 
- [List 3-5 key limitations]

OPPORTUNITIES (External Positives)
- [List 3-5 market/environmental advantages]

THREATS (External Negatives)
- [List 3-5 market/environmental risks]

STRATEGIC ACTIONS:
- SO: Leverage [Strength] to capitalize on [Opportunity]
- WO: Address [Weakness] to capture [Opportunity] 
- ST: Use [Strength] to mitigate [Threat]
- WT: Minimize [Weakness] and avoid [Threat]

Progress:

• Define scope and context
• Gather internal data (financials, operations, capabilities)
• Research external environment (competitors, market trends, regulations)
• Identify and categorize SWOT factors
• Prioritize factors by impact and urgency
• Develop strategic action matrix
• Create implementation timeline with owners

Step 1: Context Setting

• Business unit/product/project being analyzed
• Time horizon (1 year, 3 years, etc.)
• Key stakeholders and decision makers

Step 2: Internal Analysis

• Financial performance vs competitors
• Operational capabilities and resources
• Brand strength and market position
• Human capital and expertise

Step 3: External Analysis

• Market trends and growth potential
• Competitive landscape changes
• Regulatory/policy shifts
• Technology disruptions

Step 4: Strategic Matching

• SO Strategies: Growth and expansion opportunities
• WO Strategies: Improvement and development needs
• ST Strategies: Defensive and protective measures
• WT Strategies: Damage control and exit strategies

Example 1: SaaS Startup Analysis Input: B2B project management software, 50 employees, Series A funded

Output:

STRENGTHS:
- Intuitive UI with 4.8/5 user rating
- Strong development velocity (2-week sprints)
- $2M ARR with 120% net revenue retention
- Experienced founding team (2 exits)

WEAKNESSES:
- Limited marketing budget vs competitors
- No enterprise security certifications
- Customer concentration (top 5 = 40% revenue)
- Missing mobile app functionality

OPPORTUNITIES:
- Remote work trend driving 25% market growth
- Enterprise buyers seeking Slack alternatives
- European expansion market underserved
- AI integration potential for automation

THREATS:
- Microsoft Teams adding PM features
- Economic downturn reducing software spend
- New data privacy regulations (GDPR expansion)
- Talent acquisition competition driving costs up

STRATEGIC ACTIONS:
Priority 1: SO - Leverage high NRR to expand into European remote-first companies
Priority 2: WO - Address enterprise security gaps to capture larger deals
Priority 3: ST - Use development speed to add AI features before Microsoft
Priority 4: WT - Diversify customer base to reduce concentration risk

Example 2: Manufacturing Company Input: Regional furniture manufacturer, family-owned, 200 employees

Output:

STRENGTHS:
- 40-year reputation for quality craftsmanship
- Flexible custom manufacturing capability
- Local supplier relationships (avg 50-mile radius)
- Debt-free balance sheet with cash reserves

WEAKNESSES:
- Aging workforce (avg age 52)
- Manual processes, limited automation
- No e-commerce or digital marketing presence
- Higher labor costs vs overseas competitors

OPPORTUNITIES:
- "Buy local" trend gaining momentum
- Supply chain disruptions favoring regional suppliers  
- Sustainable materials demand growing
- Commercial real estate boom needing office furniture

THREATS:
- Imported furniture 30-40% cheaper
- Skilled craftspeople retiring faster than hiring
- Rising material costs (lumber up 200%)
- Large retailers demanding volume discounts

STRATEGIC ACTIONS:
Priority 1: SO - Partner with local architects/designers to capture commercial projects
Priority 2: WO - Invest in apprenticeship program and selective automation
Priority 3: ST - Differentiate on sustainability and local sourcing story
Priority 4: WT - Explore niche markets less sensitive to price competition

Data Collection:

• Use quantitative metrics wherever possible
• Interview customers, employees, and industry experts
• Benchmark against 3-5 direct competitors
• Consider 3-5 year historical trends

Factor Selection:

• Limit to 4-6 items per quadrant for clarity
• Focus on factors that significantly impact performance
• Ensure factors are actionable, not just observations
• Validate factors with multiple stakeholders

Action Development:

• Each action should address specific SWOT combinations
• Include resource requirements and timeline estimates
• Assign clear ownership and success metrics
• Prioritize based on impact/effort matrix

Analysis Errors:

• Confusing internal/external factors (putting competitors in weaknesses)
• Listing vague factors ("poor communication") without specifics
• Including too many factors, diluting focus
• Focusing only on current state vs future implications

Action Planning Mistakes:

• Creating generic actions that don't leverage specific SWOT insights
• Ignoring resource constraints and feasibility
• Failing to prioritize actions by strategic importance
• Not linking actions to measurable business outcomes

Process Issues:

• Conducting analysis in isolation without stakeholder input
• Using outdated or inaccurate competitive intelligence
• Not updating analysis as market conditions change
• Treating SWOT as one-time exercise vs ongoing process