SWOT analysis is a basic tool for a business analyst that allows for a structured identification of the internal strengths and weaknesses of a company, as well as external opportunities and threats. The essence of the approach is to create four lists:
The results of the SWOT analysis are used to choose directions for development, assess competitive advantages, and identify potential risks. In business analytics, it is applied for strategic planning of processes, forming requirements, and making management decisions.
Key features:
Can you limit yourself to internal analysis (Strengths and Weaknesses) to speed up the work?
No, SWOT without external assessment (Opportunities and Threats) loses strategic value and does not reflect the real picture of the competitive field.
Is it enough to conduct a SWOT analysis once at the beginning of the project?
No, the analysis requires regular review, especially if the project is long-term and there are changes in the external environment or business model.
Should the results of SWOT be documented at the requirements level?
Yes, the conclusions should be documented as project artifacts. Often, based on SWOT, a backlog of hypotheses and requirements is formed.
Negative Case:
The SWOT analysis was conducted only by the project manager without involving marketing and sales specialists.
Pros: Maximally quick compilation of the analysis.
Cons: Real opportunities and threats were missed, strengths/weaknesses were inaccurately assessed, the strategy is ineffective.
Positive Case:
The SWOT analysis was initiated by a business analyst who invited representatives from various departments and external experts.
Pros: Completeness of information, unexpected opportunities identified, decision-making strategy agreed upon.
Cons: Additional time required for gathering and agreeing on information.