SWOT Matrix

The name is an acronym for the four parameters the technique examines:

S = Strengths : Characteristics of the business or project that give it an advantage over others.

W = Weaknesses : Characteristics that place the business or project at a disadvantage relative to others.

O = Opportunities : Elements in the environment that the business or project could exploit to its advantage.

T = Threats : Elements in the environment that could cause trouble for the business or project.

This technique is designed for use in the preliminary stages of decision-making processes and could be used as a tool for evaluation of the strategic position of organization(s).

Users of SWOT analysis often ask and answer questions to generate meaningful information for each category to make the tool useful and identify their competitive advantage.

SWOT assumes that strengths and weaknesses are frequently internal, while opportunities and threats are more commonly external.

Although SWOT analysis is a part of the planning, it will not provide a strategic plan if used by itself, but a SWOT list can become a series of recommendations.

The SVOR alternative

In project management, the alternative to SWOT is known by the acronym SVOR (Strengths, Vulnerabilities, Opportunities, and Risks) compares the project elements along two axes: internal and external, and positive and negative. It considers the mathematical link that exists between these various elements, also considering the role of infrastructures. The SVOR table provides an intricate understanding of the elements at play in a given project.

Reference: Dag Øivind Madsen, "SWOT Analysis: A Management Fashion Perspective", International Journal of Business Research 16:1:39–56 (2016).