Matching and Converting

• One method of using SWOT analysis is known as matching and converting. Matching is the process of finding competitive advantages by determining the strengths in your business that fit opportunities. Converting is the process of identifying weaknesses and strengths and making them strengths and opportunities. An example of matching is to locate new market niches for your business, whereas converting can focus on the benefit that decentralizing, or leaving more decisions in the hands of employees, has on business innovation.
  
  

Internal vs. External

• A SWOT analysis is broken down in two ways: internal versus external and positive versus negative. Internal factors come from inside the company, and comprise its strengths and weaknesses. These can be transformed by organizational culture change or mandate. External factors come from other companies, society or technology, and cannot be directly changed. However, threats can be avoided, and opportunities can be taken advantage of.
  
  

Corporate Planning

• SWOT can be combined with corporate planning mechanisms to define a basis for the analysis of a business's internal and external environmental factors. The business must set its objectives, examine its environment, conduct internal examinations, analyze the success of existing strategies, define the issues facing the business, develop new or modified strategies, determine what the most critical requirements for success are, carry out the operations, and monitor the results to continue modification of the strategies.
  
  

SWOT in Marketing

• SWOT is often used in competitor analysis for marketing. Marketers will build detailed portfolios of all their competitors, as well as businesses that bolster their own sales, then analyze the data. Some examples of data examined are cost structure, revenue sources, resources, proficiencies, competitive advantage and historical reactions to changes in the market. From this, a SWOT profile and a business strategy can be created.
  
  

Alternatives to SWOT

• While SWOT is a popular method of business analysis, there are a number of other popular systems. The Six Forces model focuses more on the external factors in more depth (six dimensions instead of four). VRIO examines the value, rarity, imitability and organization of a product. PEST analysis focuses on the political, environmental, social and technological factors that may affect the business or product. Finally, the four corners model breaks up a strategy into motivations (drivers and management assumptions) and actions (strategy and capability).