SWOT Analysis

A SWOT analysis is depicted as a 2×2 matrix where one dimension aims at identifying internal vs. external factors and the other dimension classifies these factors as either supportive or harmful for the organization:

The 4 Areas of a SWOT Analysis

A SWOT analysis is a strategic planning technique that helps you assess the Strengths, Weaknesses, Opportunities, and Threats (hence the acronym) for almost any aspect of your business as shown here.

For Product Managers, the tool comes in handy specifically when defining the Product Strategy because it forces them to consider all relevant forces and ensure an alignment regarding that worldview inside the leadership team:

Strengths

Which internal characteristics of the business or product give it an advantage over others?

Think about:

What are you doing well?
What did customers praise you for?
When do you outperform competitors?
What is unique about your product offering?
What assets or intellectual property do you own that give you an advantage?

Weaknesses

Contrary to Strengths, which internal characteristics turn out to be a disadvantage relative to others?

Consider:

What are your customers dissatisfied with?
Where are you acting not in the interest of customers or inefficiently?
When is your product falling short compared to competitors?
Where do you see organizational deficiencies?
Where do we lack expertise or skills?

Opportunities

Which external factors or trends can the business or product exploit to its advantage?

Explore:

Which technology or market trends can you take advantage of?
Which adjacent markets are worth exploring?
Are there geographies that give you a competitive advantage?

Threads

Finally, which external factors pose risks for the business or product?

Watch out for:

What market trends are we not prepared for?
Which technology trends might take us out of business?
What economic or political issues might impact our product or business?

Note that as Product Managers, you should not limit the SWOT analysis to the core product only but also consider adjacent factors, like domain expertise, pricing, or local presence in certain markets. In fact, the SWOT analysis should consider all 4Ps of the Marketing Mix.

SWOT Analysis

The 4 Areas of a SWOT Analysis

Strengths

Weaknesses

Opportunities

Threads

Further Reading

SWOT Analysis

How to Do a SWOT Analysis