The applications of the SWOT analytical framework or SWOT aablysis have been expansive because of its numerous benefits or advantages. Despite its limitations and drawbacks, it has been commonly used to analyze the internal and external situation of an organization, its strategy, products or services, and its processes or activities, among others.
The Benefits of the SWOT Analytical Framework
1. Simplicity is a key benefit of the SWOT analytical framework. It does not require complex or technical skills to design and deploy. Furthermore, due to its simplicity, it provides users a great degree of freedom for modifications or integration with other analytical tools and techniques
2. SWOT analysis also provides a simple guide for stimulating reflective and critical thinking needed to examine the situation of an organization, especially its advantages or competencies, as well as disadvantages or deficiencies.
3. The same simplicity of the SWOT framework means that it is inexpensive to use. There is no need for an organization to hire consultants or third-party advisers to perform a SWOT analysis. In general, there is no need to use expensive analytical tools and techniques.
4. Another benefit of SWOT analysis is its wide application. Apart from investigating the internal and external situation of an entire organization, it can be used to analyze its specific components, particular projects, processes or activities, and its products or services, among others.
The Applications of the SWOT Analytical Framework
1. It is important to stress the fact that one of the main applications of SWOT analysis is to identify the internal and external situation of an organization. It provides a framework for identifying the strengths and weaknesses of an organization, as well as the opportunities it can exploit or the threats it can manage.
2. As a tool for situational analysis, another application of the SWOT analytical framework is in developing and writing business plans, specific strategic management plans, feasibility studies, business proposals, and marketing strategies, among others.
3. SWOT analysis has also been used as a precursor for formulating more specific strategies. The framework can be used to identify the sources of the competitive advantage of an organization, as well as the risks it faces. Through identification, an organization can formulate specific strategies or tactics to exploit its advantages or manage risks.
4. Product development is another application of the SWOT framework. The tool can be performed to analyze the feasibility of proposed products, as well as the current viability of existing ones. As noted above, SWOT analysis has broad applications.