Components of SWOT Matrix

There are four essential key factors to evaluate an organization's performance, which are the components of a SWOT Analysis - Strengths, Weaknesses, Opportunities, and Threats. A deeper understanding of them can help you conduct SWOT Analysis better.

SWOT is short for Strengths, Weaknesses, Opportunities, and Threats. Now Let's have a detail look at their meanings.


There are 4 components in this analytical gauge. They can be grouped in two ways - based on their scope and nature.

On the basis of the scope the four components of SWOT can be classified as:
Internal Factors: The strengths and weaknesses.
External Factors: Opportunities and threats fall under this group.

On the basis of nature, these components can be again divided into two categories:
Positive Factors: Strengths and opportunities are beneficial and thus classified as positive.
Negative Factors: Weaknesses and threats are the negative factors exerting bad influence.


Now let's take a look at each component individually.

1. Strengths

Another term for this is advantage. It is about these questions. What make your company do well? What are your strong points compared with competitors?

2. Weaknesses

It is the opposite with strengths. What are hindering your company development? What areas are worse than other companies?

3. Opportunities

What potential customers have not been found out? Whether there are promising markets that are not covered.

4. Threats

What markets are now damaging or may possibly damage your firm? Is there any vicious competition from peer enterprises?

If you draw the 4 quadrants of SWOT Analysis by yourself, according to the typical use, label the upper-left quadrant "Strengths"; the upper-right quadrant "Weaknesses"; the lower-left quadrant "Opportunities"; and the lower-right quadrant "Threats."

SWOT Analysis Templates

SWOT Analysis - Mind Map Style SWOT Analysis Model SWOT Matrix
Disney SWOT Analysis Starbucks SWOT SWOT Analysis

Edraw has prepared some exquisite SWOT Matrix templates. They are of various styles and can be edited easily. Click on the thumbnail pictures to download them.

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