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Graded Activity 3: Benefits and Limitations of SWOT Analysis

SWOT Analysis is a simple but useful framework for analyzing your organization's
strengths, weaknesses, opportunities, and threats. It helps you to build on what you do well, to
address what you're lacking, to minimize risks, and to take the greatest possible advantage of
chances for success.
BENEFITS OF SWOT Analysis
 Expose the weaknesses and evolving business culture.
 Capitalizes the opportunities and help in formulating strategies accordingly.
 Identifies the source of competitive advantages.
 Helps in deterring threats.
 Popular tools for analyzing external and internal resources.
 Improves business without expenses.
 Assists with recognizing future objectives.
 Clear to comprehend
LIMITATIONS OF SWOT Analysis
 Factors can be both strength and weaknesses; it depends on how a person classifies the
factor.
 It is not comprehensive for other factors like PESTEL.
 Weakness can be eliminated if the results are based on the research.
 SWOT is static approaches hence, loses its effectiveness gradually.
 This doesn’t provide an alternative solution or generate too much information.
 SWOT can oversimplify the problem.
 No prioritization of components.
 Components are portrayed too comprehensively.
 Extreme arrangements of qualities, shortcomings, openings and threats.