What is SWOT Analysis

What is SWOT Analysis?

Learn about SWOT with Jumanji
Jumanji- 2017

Movie Case Study

The scene shows four teenagers (Spencer, Martha, Fridge & Bethany) who are sucked into a video game. All of them are in adult bodies. Soon, each character discovers that they have different strengths and weaknesses. They also have different skills. In this blog, Learning Perspectives will explore the meaning of SWOT analysis.

What is SWOT analysis?

SWOT is an acronym for strengths, weaknesses, opportunities, and threats. This analysis is generally done to evaluate a company’s competitive position. Similar to how each character in the movie shows its strength and weakness, companies too have their own strengths and weaknesses.

SWOT analysis is a strategic tool that helps the business to understand its competition, risk, performance, and potential. It takes into account both internal as well as external factors. Strengths and weaknesses are internal factors while opportunities and threats are external factors.

SWOT analysis can be performed by individuals, entrepreneurs, businesses, governments, and NGOs.

Components of SWOT Analysis

As discussed earlier, there are four components of this analysis, let’s discuss each in detail.


Strength means something you do naturally and is extremely good at. The same is true for organizations. Organizations can have a strong infrastructure, sound financials, or new technology. Each company has some strength, and recognizing it is crucial. This helps the company to present itself to potential investors boldly.


Each company might suffer from certain weaknesses. This could be low capital or infrastructure. It could also mean high debt. It could also mean an uneven supply chain or a negative brand image.


Opportunities can be searched for and created in the market. A company should realize the opportunities present and tap into them. Collaborating with a big brand or opportunity to increase revenue are great opportunities.


Threats mean something that can cause harm to the organization. External factors such as fire, drought, and even pandemics can also be considered threats. COVID served as an opportunity for many companies such as Zoom, Microsoft Teams, etc. Knowing your company’s specific threats helps in better understanding so that precautionary steps can be taken.

How to conduct a SWOT analysis

SWOT analysis is a holistic approach. This helps companies to identify their internal & external factors. Let’s take the example of Coca-Cola.

what is SWOT analysis?

Strengths for Coca-Cola are that it has a strong brand identity and supply chain. They have some strategic acquisitions that are strengths of Coca-Cola. It has one of the greatest customer loyalty.

There have been some health concerns related to Coca-Cola. They have been facing some lawsuits too. These are some weaknesses that Coca-Cola has.

Opportunities and threats are external factors. Coca-Cola has many opportunities such as increasing its market presence in other countries. They have an opportunity to expand through acquisitions. Threats can include much competition that now Coca-Cola has because people are now becoming health conscious.

Leave a Reply