1. Introduction
In today’s competitive and dynamic environment, every organisation needs to understand its internal capabilities and external challenges to plan effectively. SWOT Analysis is one of the most widely used strategic tools that helps in this evaluation. The term SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It provides a simple yet powerful framework for assessing an organisation’s position and guiding future strategies.Originally developed during the 1960s at the Stanford Research Institute by Albert Humphrey, SWOT analysis has become a universal approach in business management, education, information science, and library management. It enables institutions to identify their core competencies, recognise potential risks, and align their goals with changing environmental conditions.
By analysing internal and external factors together, SWOT analysis assists decision-makers in formulating realistic strategies, improving organisational performance, and achieving long-term sustainability. It is the foundation for effective planning, problem-solving, and informed organisational decision-making.
2. Meaning of SWOT Analysis
SWOT Analysis is a systematic and structured planning tool to understand the internal and external factors influencing an organisation’s performance or a project’s success. The term SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It helps managers and decision-makers identify what the organisation does well, where it lacks, what favourable conditions it can exploit, and what challenges it must prepare for.It is a core element of strategic management, policy formulation, and organisational assessment. By combining internal factors (strengths and weaknesses) with external factors (opportunities and threats), SWOT provides a clear picture of the current situation and assists in planning future strategies. It helps align internal capabilities with external possibilities for sustainable growth and development.
Strengths are the positive internal attributes that give an organisation a competitive advantage. They include capabilities, resources, or achievements that distinguish it from others. Weaknesses are internal limitations or shortcomings that hinder growth or efficiency. Recognising weaknesses is essential for improvement. Opportunities refer to external factors or situations an organisation can take advantage of to achieve its goals. These are usually favourable trends or changes in the environment. Threats, such as competition, policy changes, or technological shifts, are external elements that may harm the organisation’s stability or performance.
SWOT analysis thus provides a comprehensive view of both internal resources and external conditions, forming the foundation for effective strategy formulation.
Philip Kotler (Marketing Management, 2003): “SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a business or project, to align internal capabilities with external possibilities”.
Albert Humphrey (Stanford Research Institute, 1960s): “SWOT analysis is a technique for identifying internal and external factors that are favourable and unfavourable to achieving organisational objectives” (Albert Humphrey is generally regarded as the founder of SWOT analysis.)
Heinz Weihrich (1982): “SWOT is an analytical framework that systematically identifies strategic alternatives by evaluating an organisation’s internal strengths and weaknesses and external opportunities and threats”. (Weihrich also developed the TOWS Matrix, an extension of SWOT for strategy formulation.)
David A. Aaker (Strategic Market Management, 2001):“SWOT analysis is a tool for summarising an organisation's internal strengths and weaknesses and the external opportunities and threats that it faces, to guide strategic decision-making”.
Cambridge Dictionary: “SWOT analysis is a study undertaken by an organisation to identify its internal strengths and weaknesses and its external opportunities and threats, to aid in strategic planning”.
Oxford Dictionary of Business and Management (2019): “SWOT analysis is a method of analysing an organisation’s internal strengths and weaknesses, and external opportunities and threats, as a basis for developing strategic plans”.
SWOT Analysis means systematically examining what an organisation is good at (strengths), what it needs to improve (weaknesses), what external chances exist (opportunities), and what external dangers may arise (threats). It provides a holistic view for effective decision-making and long-term strategic success.
3. Components of SWOT Analysis
SWOT Analysis is built upon four major components—Strengths, Weaknesses, Opportunities, and Threats. These elements provide a structured understanding of internal and external factors influencing an organisation’s performance. The first two, strengths and weaknesses, are internal factors, while opportunities and threats arise from the external environment.- Strengths refer to the internal capabilities, resources, and positive attributes that give an organisation an advantage. They highlight what the organisation does well and the resources it possesses to achieve its objectives. Strengths may include competent staff, advanced technology, strong financial support, or a positive reputation. In the context of libraries, strengths can be seen in the presence of qualified personnel, a vast collection of print and digital resources, efficient library management systems, and user-friendly services. Recognising strengths helps in maximising their potential for future growth.
- Weaknesses are internal limitations or shortcomings that hinder an organisation’s progress or reduce efficiency. They represent areas needing improvement, including a lack of trained staff, outdated infrastructure, limited financial resources, or weak management systems. Library weaknesses might include outdated book collections, insufficient ICT facilities, or a lack of user awareness programs. Identifying weaknesses is essential for taking corrective actions and improving organisational performance.
- Opportunities are external factors that can be used to an organisation’s advantage. These favourable conditions arise from technological changes, government policies, user needs, or partnerships that can help achieve organisational goals. For example, libraries can benefit from opportunities such as government funding for digitisation, collaboration with educational institutions, participation in digital literacy programs, and the growing demand for e-resources. By identifying and utilising these opportunities, organisations can achieve expansion and innovation.
- Threats are external challenges or risks that may negatively affect an organisation’s functioning or stability. They come from competition, technological change, economic uncertainty, or policy shifts. For libraries, threats may include declining reading habits, competition from online information sources, cyber risks, or reduced government funding. Awareness of threats allows organisations to prepare contingency plans and adopt strategies to minimise their impact.
4. Process of Conducting SWOT Analysis
A SWOT Analysis involves a systematic and step-by-step examination of an organisation’s internal and external environment. It is a logical framework that helps identify the strengths, weaknesses, opportunities, and threats to make informed strategic decisions. The process ensures the analysis is realistic, data-driven, and practical for planning and policy formulation.- Step 1 (Define the Objective or Purpose): The first step in conducting a SWOT analysis is clearly defining its purpose. The objective may vary depending on the context, such as assessing institutional performance, launching a new project, or improving existing services. A well-defined purpose ensures that the analysis remains focused and relevant. For example, a library may conduct a SWOT analysis to evaluate digital library services' impact or improve user satisfaction.
- Step 2 (Collect and Analyse Internal Data): The next step is to gather information about the organisation’s internal environment, which includes examining human resources, infrastructure, financial position, organisational culture, and operational efficiency. Data can be collected through staff feedback, performance reports, surveys, and document reviews. The focus here is to identify the strengths that can be leveraged and the weaknesses that require improvement. Internal data may include staff qualifications, ICT infrastructure, collection size, and budget utilisation in the library context.
- Step 3 (Collect and Analyse External Data): This step involves studying the external environment in which the organisation operates. Factors such as government policies, technological advancements, social and economic trends, and competition are analysed—these help identify external opportunities that can be exploited and threats that may pose risks. This stage often uses tools like environmental scanning, literature review, and user feedback. For instance, libraries may assess trends like increasing digital resource usage or potential funding opportunities from government initiatives.
- Step 4 (Prepare the SWOT Matrix): After collecting internal and external data, the information is organised into a structured format known as the SWOT Matrix. A four-cell table lists the organisation’s strengths, weaknesses, opportunities, and threats. This matrix provides a clear visual representation of the findings and helps compare internal and external factors. For example, a strong ICT infrastructure (strength) can be aligned with funding programs for digitisation (opportunity).
- Step 5 (Analyse and Develop Strategic Options): Once the SWOT matrix is prepared, the next step is to interpret the results and develop strategies. The aim is to formulate policies that:
- Use strengths to take advantage of opportunities.
- Overcome weaknesses through internal improvement.
- Use strengths to reduce external threats.
- Avoid or minimise risks arising from weaknesses and threats.
- Step 6 (Implement and Monitor Strategies): The final step is to apply the strategies derived from the SWOT analysis. Implementation should be followed by continuous monitoring and evaluation to assess effectiveness. Feedback mechanisms help determine whether the strategies achieve the desired results and if any adjustments are needed. In libraries, for example, new programs developed after SWOT analysis—such as user training or digital resource expansion—should be periodically reviewed for impact and efficiency.
5. Applications of SWOT Analysis
SWOT Analysis is widely applied in various fields such as business, education, government, and library management to support planning, evaluation, and decision-making. It provides a structured approach to understanding the internal and external environment, which helps organisations formulate effective strategies and policies. The flexibility of SWOT makes it useful for institutions of all sizes, from large corporations to small organisations like local libraries.- Strategic Planning and Policy Formulation: One of the primary applications of SWOT analysis is in strategic planning. It helps decision-makers identify key areas of strength and improvement to set realistic goals and develop strategies that align with institutional priorities. Organisations can anticipate future trends and prepare by analysing opportunities and threats. Example: A university library may use SWOT analysis to plan its five-year development strategy, focusing on digital transformation and user-centred services.
- Organisational Performance Evaluation: SWOT analysis is a valuable tool for assessing organisational performance. It helps determine how well an institution is using its strengths and managing its weaknesses. Through regular SWOT assessments, organisations can measure progress and identify areas that need attention. Example: A library can conduct an annual SWOT analysis to evaluate its performance regarding resource usage, user satisfaction, and service delivery efficiency.
- Project Planning and Implementation: Before launching new projects or services, a SWOT analysis helps assess feasibility and identify potential challenges. It ensures that projects are based on realistic internal capabilities and assessments of external conditions. Example: When implementing an institutional repository or digital library, SWOT analysis helps identify available infrastructure (strength), lack of trained staff (weakness), government funding (opportunity), and possible cyber risks (threat).
- Decision-Making and Resource Allocation: SWOT analysis supports better decision-making by highlighting priority areas for investment and improvement. It ensures that resources are allocated efficiently to maximise organisational benefits. Example: If a library identifies its primary strength is a skilled ICT team, but its weakness is outdated hardware, it can decide to allocate funds for technological upgrades rather than new staffing.
- Training and Human Resource Development: Organisations use SWOT analysis to assess employee capabilities and identify training needs. Strengths and weaknesses in human resources can be mapped to design effective training programs. Example: A public library system may find through SWOT analysis that while staff have good traditional cataloguing skills, they lack digital literacy, leading to a focused training plan for e-resource management.
- Improvement of Services and User Satisfaction: In service-oriented organisations like libraries, SWOT analysis helps improve service quality by addressing weaknesses and exploring new opportunities to meet user expectations. Example: A district library may identify declining footfall (weakness) but increasing demand for online access (opportunity). Based on this, it may introduce remote membership or digital lending services.
- Institutional Benchmarking and Competitive Advantage: SWOT analysis enables comparison with peer organisations and helps identify unique features that provide a competitive edge. Example: A university library can compare its e-resource collection and ICT infrastructure with those of other universities to identify its strengths and areas for improvement.
- Crisis Management and Risk Reduction: By identifying threats in advance, SWOT analysis helps minimise risks and prepare contingency plans. It encourages proactive management and quick response to unforeseen challenges. Example: During a funding crisis or sudden shift to online learning (as seen during the COVID-19 pandemic), a library’s SWOT analysis can guide resource reallocation and policy adjustment to maintain continuity of services.