A SWOT analysis summarises an organisation's position by listing its internal strengths and weaknesses and the external opportunities and threats it faces. It works best when it is specific, evidence-based and prioritised, and then turned into strategies using a TOWS matrix.
The four parts of a SWOT
| Part | Internal or external | Questions to ask |
|---|---|---|
| Strengths | Internal | What do we do better than rivals? What resources, brands, skills or assets give us an edge? |
| Weaknesses | Internal | Where do we lag rivals? What resources or skills are we missing? What do customers complain about? |
| Opportunities | External | Which trends, markets, technologies or rule changes could we exploit? |
| Threats | External | What could harm us: competitors, economic change, regulation, technology, substitutes? |
How to do a SWOT analysis, step by step
- Set the purpose. A SWOT for a specific decision (for example 'should we expand overseas?') is far more useful than a general one.
- Gather evidence. Use a PESTEL and five forces for opportunities and threats, and the value chain, financial data and customer feedback for strengths and weaknesses.
- List three to five points in each box. Be specific and use facts and numbers.
- Prioritise. Mark the factors with the biggest impact.
- Turn it into strategy. Use a TOWS matrix to match strengths to opportunities and to tackle weaknesses and threats.
SWOT analysis template
Copy this structure for any SWOT:
| Strengths (internal) | Weaknesses (internal) |
|---|---|
| 1. 2. 3. | 1. 2. 3. |
| Opportunities (external) | Threats (external) |
|---|---|
| 1. 2. 3. | 1. 2. 3. |
SWOT analysis example: a heritage charity
From the March 2025 SBL pre-seen, Historic Places:
| Strengths | Weaknesses |
|---|---|
| 120-year reputation; 350 unique sites; diverse income (donations, membership, admissions, retail); 20,000 volunteers | Dependence on volunteers; ageing sites with high maintenance costs; lower pay than the commercial sector; limited digital offer |
| Opportunities | Threats |
|---|---|
| Virtual tours and digital fundraising; sustainable tourism; corporate partnerships | Recession cutting donations and visits; competition from other charities and leisure; reputational risk; cyber risk; climate damage to sites |
Personal SWOT for your SBL exam
A SWOT works on yourself too. Strengths: topics you know well and your writing speed. Weaknesses: models you mix up and time management. Opportunities: the pre-seen, mock exams and free ACCA resources. Threats: work deadlines and running out of time on the day. Then plan your revision around it.
How SWOT is used in ACCA SBL
SBL rarely rewards a bare SWOT list. Marks come from using the case facts, ranking what matters and turning the analysis into recommendations. That is why TOWS is usually the stronger answer.
Advantages and limitations
Advantages
- Simple, quick and widely understood
- Combines internal and external views
- A good starting point for strategy discussions
Limitations
- Easily becomes a long, unprioritised list
- Subjective; the same fact can be a strength and a weakness
- Does not produce strategies by itself
- Quickly out of date
FAQs
What is a SWOT analysis?
A simple framework that lists an organisation's internal strengths and weaknesses and the external opportunities and threats it faces, to summarise its strategic position.
What is the difference between SWOT and PESTEL?
PESTEL looks only at the external environment. SWOT combines internal factors (strengths and weaknesses) with external ones (opportunities and threats). PESTEL often feeds the O and T of a SWOT.
Is it SWOT or SWAT?
SWOT: strengths, weaknesses, opportunities, threats.
How often should you do a SWOT analysis?
Whenever a major decision is due, and at least once a year as part of strategic planning, because the external environment changes.
Who invented SWOT analysis?
It is often credited to Albert Humphrey and colleagues at the Stanford Research Institute in the 1960s, though its exact origins are disputed.