SWOT analysis is a tool developed to help identify the key internal and external factors of an organization, to help clarify the competitive situation of a project, product etc.
Who created the SWOT analysis is not perfectly clear, but many auditors credit Albert Humphrey. Humphrey though did not claim the creation of the SWOT.
A SWOT is organized in a 4x4 matrix, the four factors are:
- Strengths: Characterizes the objects that gives a project advantages over other projects.
- Weaknesses: Characterizes what gives a project disadvantages compared to competitors
- Opportunities: Identifies object in the surrounding environment that gives a project an opportunity.
- Threats: Identifies object in the surrounding environment that gives could the project problems.
Strength and weaknesses are internal factors that the project can influence and change, while opportunities and threats are external factors that the project can't change and has to accept.
An alternative to a SWOT analyses could be the SVOR analysis. Here SVOR stand for; strengths, vulnerabilities, opportunities and risks.
SWOT-analysis in risk management in projects: https://www.projectsmart.co.uk/swot-analysis-in-project-management.php
SWOT-analysis - application and limitations: https://www.projectsmart.co.uk/swot-analysis.php
NOTE! SWOT is in general made as a strategy development tool used in business organizations. However, it can also work as a risk management tool.