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SWOT Analysis: What It Is & How to Do It [Examples + Template]

Jun 23, 202316 min read
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What Is a SWOT Analysis?

A SWOT analysis is a framework that evaluates a business’ strengths, weaknesses, opportunities, and threats. The acronym "SWOT" stands for these four factors. Performing a SWOT analysis can help you make better business decisions.
The analysis typically involves creating a matrix with the four categories:
What’s working for your business (strengths)
What’s not working (weaknesses)
The external factors your business could capitalize on (opportunities)
The external factors that could harm your business (threats)
In this post, you’ll learn how to do a SWOT analysis. We’ll include examples and also give you a .
Let’s get to it.

Why Is a SWOT Analysis Important?

A SWOT analysis is a valuable framework that can help you evaluate your business from different angles. And discover new ways to grow and improve.
By doing a SWOT analysis, you can:
Use your strengths to stand out from your competitors
Address your weaknesses before they hurt you
Find and seize new opportunities
Prepare for and avoid potential threats
Which means:
A SWOT analysis can help you make smarter decisions, plan better, and reach your goals faster.
Tip: Use to benchmark yourself against your competitors by comparing traffic acquisition, market share, and audience data.
Gain Insight Into Your Industry
with the Market Explorer Tool
ADS illustration

What Are the Components of a SWOT Analysis?

A SWOT analysis evaluates a business or project based on four key factors that can be divided into two categories: internal and external.
Here’s how you might think about filling out a SWOT chart based on these two categories:
Questions you'd ask in a SWOT analysis
Let’s take a look at each component.

Internal Factors

Internal factors are the aspects of your business within your control. They include resources, capabilities, skills, assets, and competitive advantages.
And they can be divided further into two categories: strengths and weaknesses.

Strengths

Strengths are the positive attributes that give you an advantage over competitors. They’re the things that you do well, you’re proud of, and help you stand out.
Some examples of strengths are:
A loyal customer base
A strong brand reputation
A unique product or service
A skilled and motivated team
A high-quality website

Weaknesses

Weaknesses are your business’s negative attributes that limit your performance or hinder your growth. They’re the things you need to improve, fix, or avoid.
Some examples of weaknesses are:
A lack of financial resources
A high turnover rate
A weak online presence
A low customer satisfaction rate
A low-quality product or service

External Factors

External factors are the aspects of your business that are outside of your control. These can include trends, events, economic changes, and the competitive landscape.
And they can also be divided into two categories: opportunities and threats.

Opportunities

Opportunities are favorable situations or conditions you can leverage to achieve your business goals. In other words, things you can use to your advantage or benefit from.
Some SWOT analysis opportunities examples are:
A growing demand for your product or service
A new market segment or niche
A new technology that automates routine tasks
A new partnership or collaboration

Threats

Threats are unfavorable situations or conditions that can harm your business. They’re risks or challenges you need to recognize.
Some examples of threats are:
A declining demand for your product or service
A new competitor or alternative
A new technology that makes one of your services obsolete
A negative publicity campaign
A change in regulation or policy
Now that you know about the different components, let’s take a look at exactly how to do a SWOT analysis.

Free SWOT Analysis Template

Here’s a you can use to follow along.
Why put your results into a SWOT analysis template like this one?
Because it’s easy to read and keeps things organized.

How to Do a SWOT Analysis (6 Simple Steps)

A SWOT analysis is an assessment of your business’s strengths, weaknesses, opportunities, and threats.
But it’s more than that. It’s also a tool to strategically advance your business.
And that means going beyond a simple list of facts.
Here’s how to do a SWOT analysis the right way:
The six steps of a SWOT analysis

1. Establish Your Goal

Having a goal will help you choose what’s most relevant for your analysis. Otherwise, you might end up with a ton of basic information and no idea of how to apply it to your business.
So, set a goal.
It could be any major decision or change for your business:
Decide whether you should expand your business
Assess the feasibility of new products or services
Understand the risks and benefits of changing HR processes
What if you can’t think of a goal?
Here’s a handy formula:
(Fill in the blanks.)
My business needs __________. We might meet that need by doing these things:
__________
__________
__________
You can pick more than one goal from that list. Or just the most important one. It’s up to you.
Let’s look at an example:
My business needs more capital to continue operating. We might be able to meet that need by doing these things:
Raising prices
Investing more in our sales team
Seeking new investors
Let’s say you choose the first item—raising prices.
The goal of your SWOT analysis could be something like this:
To find out whether raising prices will result in enough working capital for the business to continue operating.
Again, this is just one example.
Whatever your goal is, keep it top of mind while you complete your SWOT analysis.

2. Assess Strengths

For the next four steps, we’ll walk through how to do each part of the SWOT analysis itself.
The “S” in SWOT stands for strengths. In this step, you’ll list your business’s strengths.
Get started by asking some questions:
Five questions that uncover strengths
What should you include?
At this stage, every idea is a good one. So don’t leave anything out.
We’ll cover how to narrow down your list in the last step.
Remember:
Strengths are internal factors. That means you have control over them. And you can build on them.
Here are some examples of strengths you might list in a SWOT analysis:
More organic web traffic than your competitors
Cutting-edge features or products that your competitors don’t have
Recent investments or a large amount of working capital
If you need help thinking of strengths, use a competitive intelligence toolkit like .
It’ll help you see how you stack up against your competitors in terms of traffic, audience demographics, market share, and much more.
For example, you could use and see that organic traffic is way up compared to similar sites.
Or that your bounce rate is way lower than others. Either way, it can reveal lots of things.
Just enter up to five competitor domains and choose your market country or region.
enter up to five competitor domains in Traffic Analytics tool
Then, compare the results to your own traffic data.
Traffic Analytics lets you compare your organic traffic and other data with your competitors
Analyze Any Company’s Online Performance
with the Traffic Analytics Tool
ADS illustration

3. Uncover Weaknesses

Your business has weaknesses. And that’s OK—your goal is to make improvements.
Start by writing down your weaknesses. Be honest with yourself. And be thorough.
Here are some questions that can help:
Four questions that uncover weaknesses
Listing your weaknesses can be a bummer. But there’s good news:
Like strengths, weaknesses are internal factors. That means you have control over them and can use them to improve.
Here are some examples of weaknesses you might include in a SWOT analysis:
High operating expenses relative to revenue
Long customer support response times
SEO content creation efforts failing to increase organic reach
Just as can help you find strengths, it can also help find weaknesses.
report from Traffic Analytics
Use these tools wisely as you conduct your .

4. Consider Opportunities

Opportunities are the “O” in SWOT.
Here are some questions you can think through to uncover opportunities:
Five questions that uncover opportunities
It’s easy to confuse “opportunities” with “strengths.”
To avoid that, keep this in mind:
Strengths are internal factors. They exist inside your business.
Opportunities are external factors. They happen outside of your business.
You build on strengths. You use opportunities to your advantage.
It’s a subtle but important distinction.
Here are some examples of opportunities you might list in a SWOT analysis:
Market shifts increasing demand for a product your business could sell
Your ideal customers flocking to a new social media platform you can use to reach them
A competitor ceasing operations in a region where you don’t currently operate
Tip: A great way to find opportunities is to use the tool. It’ll help find keywords your competitors are ranking for, but you aren’t. Each of those keywords is an opportunity for you to bring in more traffic.
"Top Opportunities" section in Keyword Gap tool
Find Keyword Opportunities
with the Keyword Gap Tool
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5. Identify Threats

Threats are the “T” in SWOT. And they’re the opposite of opportunities.
They’re external factors that could put your business at risk.
Here are some questions that will help you identify threats:
four questions that uncover threats
Threats evolve over time based on factors outside of your control. But you can plan for them.
If you’re paying close attention to your industry, you probably know the major threats you face. Write them down in .
Here are some examples of threats you might list in a SWOT analysis:
An emerging competitor
A legal change that could affect your business
Economic conditions that negatively impact your customers’ buying power
You can use in the .Trends toolkit to spot emerging competitors and trends.
Enter your domain to find competitors in your market.
choose "Find Competitors" option in Market Explorer tool
Then scroll down to the growth quadrant to see which domains are rising in your industry. You can view competitors by behavior, traffic, and growth metrics.
the growth quadrant in Market Explorer shows which domains are rising in your industry
Learn About Emerging Competitors
with the Market Explorer Tool
ADS illustration

6. Narrow Your Lists

At this point, you should have a decent number of items in each of your four SWOT categories. Now, you have to narrow them down.
There’s no set maximum number of items for each category. But keep this in mind:
You don’t want to overwhelm yourself.
Stick to the most important items. Stay focused so you can make impactful changes.
Struggling to narrow your lists? Try the impact effort matrix.
It’s a tool to help you decide which actions could have the greatest impact with the least effort.
And it looks like this:
The four quadrants of the impact matrix
Here’s how to do it:
Compile all of the items from your SWOT analysis
Draw a four-quadrant diagram. On the vertical axis, you’re measuring the impact of an item on your business. On the horizontal axis, you’re measuring the effort required to implement or address that item.
Place each strength, weakness, opportunity, and threat into its appropriate quadrant based on required effort and potential impact
The items in the top left quadrant are likely to be your best options. Because they’ll have the most impact for the least effort.

When Should You Do a SWOT Analysis?

There’s rarely a wrong time to do a SWOT analysis.
Bottom line:
If you’re looking for clarity on a business move you’re considering, that’s a great time to do one.
Here are some other perfect times to do a SWOT analysis:
When your business is undergoing significant internal changes
When external conditions are changing
Before strategic planning
On a regular basis
Generate a SWOT Analysis in Seconds
with AI Strategic Market Insights
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3 Real-World SWOT Examples

Now that we've covered how to perform a SWOT analysis, let's put those steps to the test with some examples.

1. Marketing Agency SWOT Analysis Example

Imagine you’re running a marketing agency that does
, social media, and content marketing.
You’re thinking about investing a lot of time and resources into your website’s blog. You know that great, search engine-optimized blog content could earn you more inbound leads over time.
But you’re not sure whether it’s the right move.
So, you do a SWOT analysis to help you decide. The goal is to answer this question:
Should we invest more time and resources into our website content to increase our inbound leads?
Start with your strengths. Here are the fictional marketing agency’s strengths:
Your all-remote team saves money on office space and enables you to hire the best talent, regardless of their geographic location
Many members of your existing team have content creation skills
You consistently outperform your competition by getting better SEO results for your clients
Add your weaknesses:
Your team struggles to get deliverables to clients on time each month
You have published very little on your blog in the past, so your current search engine rankings are minimal to nonexistent
Your team has no codified processes for content creation, such as style guides or publishing standard operating procedures (SOPs)
Next up is opportunities:
Few of your local competitors have invested heavily in their own blog content
People enter related to your services into Google many times per month
Recent market research suggests that your ideal clients are more likely to trust agencies with active blogs
Finally, list the threats your agency faces:
Search engines are becoming more selective about what they will display in search results, leaning more heavily on long-established blogs
The economy is showing early signs of a downturn that could reduce investment in marketing, meaning your investment in content is less likely to yield ROI
New agencies with strong content and SEO strategies are popping up in droves as more people leave their jobs to start their own businesses
Table 37
Column 1
Column 2
Strengths
Weaknesses
Remote team saves money and attracts talent
Employees have content creation experience
Clients get great SEO results
Team struggles to deliver on time as it is
Current search rankings are nonexistent
No SOPs for content creation
Opportunities
Threats
Local competitors haven’t invested in their own content
Strong search demand related to your services
Ideal clients more likely to trust agencies with active blogs
Search engines are becoming more selective
An economic downturn may be on the horizon
New agencies with strong SEO strategies are entering the market
There are no rows in this table
That’s it. Of course, now you actually have to do something with this information.
More specifically:
You need to see how your website content is actually performing.
You can use Google Search Console to measure that.
Go to “Search results” and check the box for “Average position.”
“Average position” box highlighted in Google Search Console
Scroll down to see your organic keyword rankings or positions:
Google Search Console shows your organic keyword rankings or positions
These tell you where the website currently stands in Google search results for particular keywords.
In our fictional agency SWOT analysis example, your baseline organic keyword rankings would give you an idea of your starting point.
And in Semrush’s tool, you can find organic competitors. This tells you about the competition you’d face if you invested more in your website content.
Screenshot of the domain overview tool with "yoursite.com" in the search bar
Scroll down until you see your top organic keywords:
Domain Overview tool shows your top organic keywords and their metrics
There’s also a competitive positioning map. Which puts your website’s search engine performance in visual context with your competitors:
The main organic competitors and competitive map sections of the same report
Check Any Competitor’s Site Performance
with the Domain Overview Tool
ADS illustration

2. Local Service Business SWOT Analysis Example

Now, let’s look at an example SWOT analysis for a local service business.
Our example will be about a criminal defense law firm. But many of the principles we’ll explore could apply to other local services businesses:
HVAC contractors
Plumbers
Electricians
Home remodelers
Accountants
Florists
Caterers
Let’s dive in:
Your fictional criminal defense law firm operates primarily in the Manhattan area of New York City. You focus on white collar criminal defense but offer other types of criminal defense.
You’re considering an expansion. You want to open a new office on Long Island, New York, and offer your services there.
But you’re not sure whether the expansion will be profitable. To find out, you do a SWOT analysis:
It’s always the same process. Begin with strengths:
You get many Manhattan clients through referrals from past clients and word of mouth
You have a highly successful track record with your clients
You have room in the budget to hire new attorneys and open a second office
Time for your firm’s weaknesses:
Your team is inexperienced with cases outside of white collar crimes
Your attorneys are familiar with New York City courthouses and judges, but they’re not experienced with those on Long Island
Your firm’s digital marketing and advertising efforts have been largely ineffective
On to opportunities:
Few Long Island law firms offer white collar criminal defense (your area of specialty)
Economic development and business expansion on Long Island may increase the local need for white collar criminal defense services
Statewide law enforcement crackdowns may increase demand for criminal defense across the state of New York
Finish it off with the threats your firm faces:
Your competitors are also considering expanding to Long Island
Real estate taxes are rising rapidly on Long Island with no signs of slowing down
Competing law firms have hundreds of positive online reviews
Table 38
Column 1
Column 2
Strengths
Weaknesses
Clients come to you through referrals and your reputation
You have demonstrated success
You have the money to expand
You’re not familiar with all types of criminal defense work
Your attorneys don’t know the Long Island legal market well
You’ve struggled to raise awareness of your firm through marketing and advertising
Opportunities
Threats
Long Island may have unmet demand for your area of specialty
More business activity in the area may increase demand for white collar criminal defense
Increased law enforcement activity may increase the need for criminal defense services
Competitors may also enter the Long Island market
Real estate taxes are rising rapidly on Long Island
Competitors have a much stronger digital presence than your firm
There are no rows in this table
With the SWOT analysis complete, it’s time to take action. To further explore your local market, you could use .
This tool offers a Benchmarking report that shows side-by-side comparisons of main players in your local market.
Go into the tool and click “Find Competitors.”
Market explorer tool with the "find competitors" button highlighted
Then, under “Location,” select your country or region. Enter your domain. And click “Research a market.
Like this:
Market explorer tool with the united states selected as the location and "yoursite.com" under the your domain label
You get a detailed market summary:
Screenshot of the market summary report
Here, you’ll find out:
Who the key players in your market are
How much business consolidation has occurred in your market
How much total traffic is available in your market
Total addressable market (TAM) and serviceable available market (SAM)
You’ll also get a look at a Growth Quadrant for your market.
The Growth Quadrant shows where your business’s website falls among your competitors.
Are you a leader, established player, niche player, or game changer? And where are your competitors on that scale?
The Growth Quadrant shows where your business’s website falls among your competitors
The Growth Quadrant places your website and your competitors within one of those quadrants.
That helps you identify your own positioning and where you could go.
Going back to our law firm thinking about expanding:
The Growth Quadrant could help them understand who the established players are on Long Island. And whether there’s room to break into the market.
Further reading:

3. Ecommerce SWOT Analysis Example

For this next example, let’s imagine you run an ecommerce business. One of your competitors has just offered to buy your brand.
You’re not sure whether you should sell your business or keep it. So, you do a SWOT analysis to get a clearer picture.
You list your strengths:
Your business is consistently profitable
Your website is ranking well in Google search results for some extremely valuable keywords related to your products
You have automated many of your internal processes to reduce labor expenses
Next, you list your weaknesses:
You have poor customer support operations, which has led to some negative online reviews
Few of your products generate a very high profit margin, so you have to sell at high volumes consistently
You rarely have repeat customers, meaning you have to spend more on marketing and advertising to acquire new customers
Opportunities are up next:
One of your key competitors recently decided to dissolve their business. That leaves a gap in the market.
One of your products was recently featured in a popular TV show. That could drive up demand.
You’ve started to receive queries about influencer partnerships and affiliate marketing opportunities
Last but not least, threats:
Your products are not environmentally friendly. Growing environmental awareness could lead to lower public opinion of your products.
Much of your ability to sell your products rests with third parties like Amazon and Shopify. A single change in those third-party platforms could severely harm sales.
Political unrest is making it difficult to ship your products to one of your key buyer markets
Table 39
Column 1
Column 2
Strengths
Weaknesses
Your business is profitable
Your SEO efforts are driving sales
You have automated processes to cut expenses
Your customer support is lacking
Slim profit margins mean you have to sell a lot
You have high customer acquisition costs because you don’t retain many customers
Opportunities
Threats
A key competitor left the market
A TV appearance may drive demand for your product
Affiliate and influencer marketing opportunities could drive more sales
Environmental sentiment could reduce the popularity of your products
Third-party selling platforms could change their rules and wreck your current sales processes
Shipping is becoming unreliable in one of your key markets
There are no rows in this table
Remember: Your next step after actually writing the analysis is to do something.
In this case, you need to make a decision.
If you’ve done your SWOT analysis right, you should have the information you need to make that decision.

Analyze Your Business & Achieve Your Goals

Setting and achieving goals is key to business success. And a SWOT analysis is key to evaluating goals and the ways you can achieve them.
If you haven’t already, grab your .
Take your time. Be thoughtful. And your SWOT analysis will lead to results.

The Sustainability SWOT Analysis - A tool for Strategic Sustainability Management & Innovation

Dec 20, 20183 min read
The is a tool for strategic sustainability analysis and decision-making that can be used in combination with the . Whilst the Sustainable Business Model Canvas is based on the classic Business Model Canvas, the Sustainability SWOT analysis is based on the widely used SWOT analysis, and will therefore be easy to learn and use for most professionals. The Sustainability SWOT retains the original classification into two main categories:
Internal factors (the Strengths and Weaknesses internal to the organisation)
External factors (the Opportunities and Threats external to the organisation)
Whilst the original SWOT analysis could indeed be used in a way that includes ecological and sociocultural aspects, thereby following a triple-bottom-line approach, this is not what is usually happening in practice.
The Sustainability SWOT addresses this problem by “wrapping” the classical SWOT into a triple-bottom-line context: it forces users to first identify environmental and social trends and challenges, and then conduct a triple-bottom-line SWOT analysis to prioritize concluded actions. This way, a classical tool with high recognition value but low apparent sustainability relevance has been “upgraded” to incentivise professionals to consider environmental and sociocultural issues and force them to include these issues when considering relevant actions to take.

How to use the Sustainability SWOT analysis

The Sustainability SWOT analysis “canvas” is structured into three main sections, this way incentivising a sequential completion by the user.
Step 1: Environmental and Social Challenges and Big Trends
As a first step, the user starts with a broad assessment of “big” environmental and sociocultural challenges and trends. As part of this first step, the user should ask the questions: what do I and others see changing in the world, and which related challenges do arise? This consideration could e.g. include challenges such as increasing water scarcity, climate change induced temperature extremes, an increase in mental illness related to stress and job insecurity or plastic pollution of the oceans. Part of this consideration are also “big trends”, such as demographic shifts (e.g. an aging population, particularly in Germany or Japan) or shifts related to globalisation (e.g. increasing unemployment due to loss of manufacturing jobs in western nations).
This first step makes sure that external environmental and sociocultural challenges and trends are at least considered when making decisions, and increases the likelihood that they actually affect those decisions. This is important, because the often lamented lack of consideration for externalities by businesses is in part a consequence of a lack of awareness of employees. Awareness-raising therefore can have a significant impact on corporate decision-making, in addition to its educational impact, as it may make any misalignment between a companies proclaimed values and its actions obvious. This awareness of values misalignment can indeed have a profound positive impact, as .
Step 2: SWOT Analysis with a triple-bottom-line focus
Following step one, the classical part of the SWOT analysis can be performed. However, the user is prompted to not only consider the challenges and trends defined in the first section, but also to evaluate Strengths, Opportunities, Weaknesses and Threats with particular regard to environmental and sociocultural aspects, and innovative ways to address them (e.g. via cooperations with value chain partners on supply chain transparency). This way, the Sustainability SWOT analysis can also initiate innovation and business transformation.
Step 3: Prioritisation and Action
In the final part, the user of the Sustainability SWOT Analysis should prioritise gained insights and, in case the exercise is intended to influence senior management in a cooperation, identify strong messages and their links to the company values. Finally, a sensible strategy for taking short-, mid- and long-term action can be derived.
Conclusion
Due to the fact that the Sustainability SWOT Analysis is based on the familiar classical SWOT, it’s implementation into the processes of a traditional company is straightforward. The Sustainability SWOT enables both strategic analysis and decision-making and may initiate innovation, due to its emphasis on identifying potentially disruptive “big trends”. The Sustainability SWOT is useful to work across internal departments as well as with suppliers, customers and other stakeholders to create long-term sustainable business value. In combination with the and the , the represents a for sustainable innovation and management.

Information on SWOT analysis, particularly in the context of sustainability, can be found in the following sources:

"All slides in class sessions + case studies?.pdf"
Pages 29-32: These pages introduce the traditional SWOT analysis framework (Strengths, Weaknesses, Opportunities, Threats) and provide guiding questions for each element.
Pages 30-32: These pages specifically detail how to conduct a Sustainability SWOT analysis. It explains how to adapt the traditional SWOT to include environmental and social considerations, and how to identify internal and external factors relevant to sustainability.
Page 41: This page explains that a sustainability SWOT analysis for stakeholders can help to adjust an organisation's mission and vision.
Page 154-157: These pages provide questions to guide a Sustainability SWOT analysis, including how to identify strengths, weaknesses, opportunities, and threats related to environmental and social challenges, and how to use the analysis to develop a strategy.
"My organizational management lectures and notes.pdf"
Pages 152-154: These pages present a traditional SWOT analysis, including guiding questions for identifying internal strengths and weaknesses, as well as external opportunities and threats.
Pages 154-157: These pages provide questions to guide a Sustainability SWOT analysis, including how to identify strengths, weaknesses, opportunities, and threats related to environmental and social challenges, and how to use the analysis to develop a strategy.
Key Concepts of SWOT Analysis and Sustainability SWOT Analysis:
SWOT Analysis:
A strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of an organisation or project.
Strengths and Weaknesses are internal factors, while Opportunities and Threats are external factors.
The analysis helps in understanding the current position of an organisation and planning future strategies.
Traditional SWOT analysis focuses primarily on business and market factors.
Sustainability SWOT Analysis:
An adaptation of the traditional SWOT framework that specifically incorporates environmental and social dimensions.
Aims to identify how an organisation's strengths can address environmental challenges, what weaknesses make them vulnerable to environmental risks, what opportunities arise from sustainability trends, and what threats exist to their future business value.
Involves extending the list of an organisation's strengths to include partners in the value chain.
Includes considering core and transferable strengths, such as R&D or engineering.
When assessing Weaknesses, the analysis focuses on risks resulting from environmental challenges, such as impacts on operations, regulations, and commodity prices, also including partners.
When assessing Opportunities, it focuses on how to address threats that are currently not being addressed and on business value that can be created by new products, services and business practices.
When assessing Threats, it considers direct threats and those to partners in the value chain, focusing on the entire chain, upstream and downstream.
The analysis helps in creating short, mid and long-term strategies.
Integration with Strategy:
A Sustainability SWOT analysis can help an organisation to adjust its mission and vision to account for the current situation.
The findings of a Sustainability SWOT analysis can help in developing and prioritising strategies that will align with the company’s vision.
The analysis is also used to identify key messages for senior management.
Purpose:
To help organisations identify the environmental and social challenges and trends they face.
To assist organisations in identifying where and when they can act to implement sustainable practices.
To help organisations understand how sustainability can be integrated into strategic planning.
These sources emphasise that both traditional and sustainability-focused SWOT analyses are valuable for strategic planning. By incorporating environmental and social dimensions, the Sustainability SWOT helps organisations to address modern challenges, identify areas for improvement, and develop more sustainable and resilient business strategies, as well as adapt its mission and vision.

Develop a sustainability SWOT analysis for your stakeholder that accounts for the current situation. This could help you to adjust your mission and vision and give your arguments in a later discussion on why your organization is a good riparian • organization.






SWOT
Strengths
Strengths
What are we good at? Which strengths did customers or partners emphasize? In which areas are we superior to our competitors? What is unique to our company or offerings? What are our advantages (i.e., intellectual property, technical facilities)?
Weaknesses
What can we improve? Where are our customer or partners unsatisfied? Where are we inferior to our competitors? Where do we lack resources or knowledge?
Opportunities
From which trends can we profit? Which of our strengths can be valuable for potential partners? Which adjacent markets can be tapped? Are there geographic regions with less competition?
Threats
What plans do our competitors have? How do our weaknesses make us vulnerable? For which market trends are we unprepared? Which economic or political developments can impact our business?
Sustainability SWOT analysis
Environmental&Social challenge &big trend
Challenges
What do you and others see changing? For example:
— Natural resource scarcity — Water availability — Waste & hazard — Global warming
— Climate variability & extremes
Trends
Trends
What are the sustainability relevant big trends? For example:
— Innovation & technology advances — Demographic & social shifts — Global economic dynamics — Political & regulatory requirements
Strengths, Opportunities, Weaknesses & Threats
Strengths
Strengths
How can our strengths address environmental challenges? Start with traditional list of your companies' strengths, extend
the list to the partners in your value chain Consider core and transferable strengths (i.e., R&D, Engineering)
Weaknesses
Weaknesses
Who has similar weaknesses or faces similar risks?
Start with risks resulting from environmental challenges impacting markets (e.g., operations, regulation, commodity prices)
Inclu de partners in lis
Opportunities
Opportunities ​Look at threats that currently are not addressed, and how you
can address these threats Consider the business value that can be created with new
products, services and business practices
Threats
Where are environmental challenges threatening future business value?
Consider both direct threats as well as threats to partners in value chain
Look upstream and downstream and identify opportunities for joint action
Environmental & social challenegs & big trend
Prioritize
Prioritize
Which insights will influence senior company stakeholders most?
Prioritize according to company vision and strategy Identify strong messengers Emphasize findings that would resonate with CEO and senior
management
Internal and External Evaluation Assessing WWF’s internal characteristics as well as their external position with regards to the organization’s opportunities and threats is a crucial step in devising effective and efficient strategies. Through evaluating WWF’s internal and external environment, the strategists will have a very good idea of the things that they can strengthen and improve using the resources that they have. Assessments of these factors are made below using the following strategic tools: Internal Factor Evaluation (IFE), External Factor Evaluation (EFE), and Competitive Profile Matrix (CPM). Internal Factor Evaluation WWF’s key strengths and weaknesses are listed below and evaluated through assigning weights and ratings based on their impact to the organization. WWF’s current and previous operations, organizational structure, financial statements, and other internal aspects are taken into consideration. Key Internal Factors Weigh t Rating Weighte d Score Strengths 9 1 Had an expense of only $0.0985 for each $1 raised making it one of the top non-profit organizations. ($291.49M operating revenue were generated in 2014 from $28.7 M fundraising expense). 0.09 4 0.36 2 77% of revenues were spent in direct support of conservation programs. 0.06 4 0.24 3 World’s largest independent, nonprofit conservation organization with a strong brand name and a long, respected history of successful track records. 0.07 4 0.28 4 Administrative expense and fundraising expenses represent only 4.8% and 10.8% of total expenses respectively. 0.06 4 0.24 5 Has great global presence (operates in 100 countries, 1M members in the US, 5M members globally, 6200 fulltime staff). 0.06 4 0.24 6 Partnership with big organizations such as UNEP, IUCN, Coca Cola, Avon, etc., in achieving WWF's objectives. 0.05 4 0.2 7 The current ratio increased from 2.28 in 2013 to 2.35 in 2014 while the working capital has a ratio of 1.59:1. 0.04 4 0.16 8 Strong organizational code of ethics to remain global, independent, multicultural, and nonparty political. 0.02 3 0.060 9 WWF's 10-year goal to "measurably conserve 15 to 20 of the world's most important eco-regions. 0.02 3 0.06 1 0 WWF's successful past projects including Wildlands and Human Needs initiative on the co-existence of both rural people and wild animals without having negative impact on the natural habitats. 0.02 3 0.06 1 1 In support of global conservation, Bank of America has offered a WWF Visa card since 2009 0.03 3 0.09 1 2 Renewal of partnership with Coca Cola (partner since 2007) until the year 2020. The partnership focuses on reducing the carbon content & sustaining fresh water supplies. 0.04 3 0.12 1 4 Recognizing its impact on the environment, Avon - a large producer of brochures and consumer paper products with distribution in over 120 countries, has partnered with WWF 0.04 3 0.12 10 in two key areas. Weaknesses 1 In-kind contribution decreased by 27% from $64.3M in 2013 to $46.96M in 2014 which is not good since funding relies heavily on contribution. 0.07 1 0.07 2 Operating Expense on Public Education Program decreased by 20.83% from $81.74M in 2013 to $64.71M in 2014. 0.05 1 0.05 3 Have a broad focus, mission, and vision which may be difficult to attend to. 0.06 1 0.06 4 Have dual title in their Organizational Structure such as that for President and CEO, and Senior Vice President and General Counsel. 0.04 1 0.04 5 WWF's stand in Cecil the Lion's killing issue when they tolerated hunting for sports. 0.03 1 0.03 6 Individuals contributed 32% while corporations contributed only 4% of total revenue. 0.03 2 0.06 7 Bequests, endowments, and split income gifts decreased by 58.27% from $29.21M in 2013 to $12.19M in 2014. 0.02 2 0.04 8 No distinguishing characteristic from competitors. 0.05 2 0.1 9 Even with WWF's efforts to save Rhinos, still, Rhino poaching has increased by 9,346% from 2007 to 2014. 0.03 2 0.06 10 Total asset turnover decreased from 0.61% in 2013 to 0.59% in 2014. 0.02 2 0.04 Total 1 2.78 WWF’s major strength lies in its efficient funding and utilization of resources and expenses. The name that it has established for decades in an international scale has also given them an edge as well as the experience the organization has garnered during those more than 50 years of existence. These reputation and experiences has led them into establish strong partnerships and connections with different governments and other big organization which gave 11 them better access and resources into achieving its mission and vision. However, becoming very big and globally known also has its drawbacks. WWF’s major weakness would include the decrease in their in-kind contributions which is not good since their operations rely heavily on donations (with them being a non-profit organization). This may be because of the organization being too wide that more eyes are on them giving rise to controversies such as its view on the killing of Cecil the Lion wherein they tolerated trophy hunting. WWF also has very broad mission and vision which may be difficult to address. External Factor Evaluation WWF’s opportunities and threats are listed below and evaluated through assigning weights and ratings based on their impact to the organization. The following factors below are a summary of the information gained from WWF’s external environment. Key External Factors Weigh t Ratin g Weighte d Score Opportunities 1. Expansion of WWF Office to Myanmar after partnering with the government (regarded as rich natural capital; 3 pristine rivers, over 250 mammal species, more than 10000 bird species) 0.06 3 0.18 2. Global awareness for wildlife welfare on many fronts was raised due to the death of Cecil (a lion) by a hunter named Palmer 0.05 3 0.15 3. Increase of 12% contribution from 2013-2014 for non-profit organizations, philanthropy is now becoming more prevalent. 0.04 2 0.08 4. In 2014, HP Canada partnered with WWF to launch Spring Things – which creates a link between employees and environmental conservation through events and campaigns 0.05 3 0.15 12 5. In 2014, WWF worked with the Namibian Ministry of Environment and Tourism to field test an integrated network of technologies. In the second phase, WWF will work with additional governments, including Nepal and Kenya, to implement the project under different field conditions. 0.06 3 0.18 6. A US government legislation was implemented - Wildlife Trafficking Enforcement Act, which increased the penalties associated with wildlife trafficking 0.05 3 0.15 7. Establishment the Bioplastic Feedstock Alliance, where leading global companies have committed to the development of plastics made from plant-based material 0.06 3 0.18 8. 1 billion people rely on fish as an important part of their diet and that more than 520 million livelihoods are supported by fishing and it related activities. 0.06 3 0.18 9. According to National Geographic, 68% of consumers in 18 countries believe that climate changes are due to human actions 0.07 2 0.14 10. According to Fortune, 100 companies report savings of$1.1 billion annually through energy efficiency and renewable energy. 0.05 2 0.1 11. According to New York Times, number of nonprofits has increased 60% in the last decade. 0.03 2 0.06 Threats 1. The Nature Conservancy’s research shows that currently half of the world’s major rivers are seriously polluted and/or depleted and that within 10 years, most people on the planet will face water shortages 0.05 3 0.15 2. Global condition of wildlife and wild areas has steadily declined, especially in the ocean, 60 percent of the world’s ecosystems declined. 0.06 2 0.12 3. World’s population expected to grow to 9 billion by 2050 and the demand for food is expected to double 0.05 2 0.1 13 4. Leading hazards to human health are climate change, stratospheric ozone depletion, changes in ecosystems due to loss of biodiversity, changes in hydrological systems and the supply of freshwater, land degradation, and stresses on food- producing systems. 0.04 3 0.12 5. Only 3.4% of oceans are being protected - they might cover over 70% of our planet’s surface, but even the vast majority of the world’s few marine parks and reserves are protected in name only. 0.03 2 0.06 6. International Panel on Climate Change (IPCC) forecasts a temperature rise of 2.5 degrees 0.04 2 0.08 7. The Brazilian economy contracted 0.2 in quarter 3 of 2014, following a drop in the previous period. This is a threat to conservation efforts especially in the Amazon Rainforest 0.02 2 0.04 8. Globally, the loss of forests at a staggering 48 football fields per minute 0.04 2 0.08 9. Wildlife population of mammals, birds, reptiles, amphibians, and fish have declined by 52% over the last 40 years 0.04 2 0.08 10. According to GEF organization, the land degradation affects 33% of the earth’s land surface, with consequences affecting more than 2.6 billion in more than 100 countries 0.05 3 0.15 Total 1 2.62 Partnering with commercial companies to start joint project initiatives is one of the main opportunities available to WWF. Collective efforts with business establishments and the government distinctly outweigh all the other opportunities. Being with these entities who are into conserving nature, serves as a stepping stone for companies to allocate funds in supporting a sustainable eco-management system. One cannot reverse the negative impact done by several commercial industries anymore. What can be done is to assist them in managing future developments that can reach a sustainable environment where conservation efforts work together with entities that need resources to supply manufacturing and growth. 14 The threats illustrated in the EFE matrix are environmental issues which are critical and if not addressed properly can lead to scarce resources and damaged natural resources. “Global condition of wildlife and wild areas has steadily declined, especially in the ocean, 60 percent of the world’s ecosystems declined.” Increase in the demand for food supply, pollution and the decline in wildlife population pose a threat to countries that have a bigger population to supply and to protect.
SWOT Matrix The strategies created using the SWOT Matrix made use of all available information regarding WWF's internal and external environment. In addition, the modification in the mission and vision statement of the company was also incorporated in the matching of key external and internal factors. Basically, the strategies formulated using the SWOT Matrix aims to capitalize WWF's strengths, exploit all possible opportunities, minimize or completely eliminate weaknesses and mitigate threats. 16 SO Strategies 1. Increase advertising cost to 10% to capture 15% increase in contribution (in-kind and monetary) from private institutions following the trend of philanthropy. (S3, S5,O3) 2. Launch Eyes on the Sea project with the US and other governments that will completely ban illegal fishing (S3,S5,O6,O8) 3. Highlight WWF's efficiency in managing expenses to gain funding from governments seeking to donate. (S1,S2,S4,O3) 4. Use partnership with Avon to commanage Salonga National Park in the Democratic Republic of Congo with the aim of addressing illegal logging, biodiversity loss and to support local livelihoods. (S14, O9) 5. Form a team that would assess Myanmar's natural resources which would include identifying where they are located, what benefits they provide to people and how they might change under different climate change and development scenarios. This assessment may enable better policy decisions for the country as a whole. (S5, O1) 6. Continue partnering with the US government, other governments and TRAFFIC to put increased security on wild land trafficking by launching the project Fight for the Wild (S10, O6) 7. Form a partnership with Durrell Wildlife Conservation Trust and Dreamworks Productions to launch the project, SAVE MAURICE, which aims to increase the protection provided to lemurs and other wildlife in the Madagascar forest. (S9, O11) 8. Provide trainings and immersions to employees to encourage employee commitment. (S5, O4, O9) WO Strategies 1. Increase spending in public education by 10% to encourage increasing awareness of environmental issues (W2, O2, O9) 2. Increase bequests, endowments and split income gifts by 10% by capturing a portion of the increasing trend of philanthropy (advertisements) (W7,O11) 3. Disrupt global tiger trade in Myanmar through Wildlife Crime Law Reinforcement and promotion of new wildlife legislation to improve brand image (W5, O1) 17 ST Strategies 1. Use partnership with Coca-Cola to promote sustainable packaging of commercial products (S12, T4 ) 2. Increase investment in R&D by 10% that would aim to capture the environmental situation which would aid WWF in their efficient planning of conservation efforts and monitoring emerging threats (S5 + S9 + T1 + T2 + T3 + T4 + T5 + T6 + T7 + T8 + T9 + T10) 3. Partner with the local government to enforce more effective policies to communities surrounding the Yangtze river regarding proper disposal of agricultural waste (S10, T2) WT Strategies 1. Rectify taint in brand image by improving current projects on wildlife conservation (W5, T2, T9) 2. Consider partnering with other NPOs on projects regarding climate change (W8, T4,T6)
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