For What Types of Organizations Would a SWOT Analysis Work?

• Every organization must undergo frequent, if not constant, assessment. One tool in assessing organizational potential analyzes the company's strengths (S), weaknesses (W), opportunities (O) and threats (T) to develop a comprehensive picture of the organization's position in the market. Known as a SWOT analysis, this tool also helps leaders develop a plan for growth or, if necessary, alternative courses of action.

Multinational Corporations

• Many large organizations with operations in more than one country can benefit from a SWOT analysis, both for the organization as a whole and for the individual units in different nations. According to the business website Net MBA, a comprehensive SWOT assessment includes factors like the company culture, access to natural resources, patents, exclusive contracts, customer base, suppliers, market trends and even the political environment. Because these factors can vary considerably for the different geographical areas of multinational corporations, a SWOT analysis for each of the organization's national units can help leaders tweak the individual operations to best serve the local environment.

Healthcare Organizations

• According to the professional association Management Sciences for Health, organizations in the health care industry can benefit from a SWOT analysis. Both team members and managers in operations like hospitals, private practices and insurance agencies can use the tool to maximize the organization's potential and develop a strategic plan. The health care industry experiences frequent changes due to political regulations, privacy laws and technological advances, so medical organizations may benefit from conducting regular, periodic SWOT analyses.

Retail Establishments

• From the largest retail chain to local boutiques, organizations that resell merchandise face fierce and constant competition from other retailers. By constantly assessing and reassessing strengths and weaknesses, retail managers can position the business to capitalize on strengths in order to attract new shoppers. In addition, both opportunities and threats can rapidly emerge in the retail arena, so routine SWOT analyses can help identify potential issues before they become problematic.

Start-ups

• While crafting a business plan, entrepreneurs typically analyze issues like barriers to entry (threats) and available market niches (opportunities). The career website Mind Tools notes that a SWOT analysis can help a business owner identify or even carve out a niche market, so performing this assessment during the business start-up phase can help get an organization off to a successful start. In addition, entrepreneurs must use caution when entering the marketplace, being fully aware of the company's vulnerabilities and identifying weaknesses and threats to stave off disaster from unexpected problems. In some cases, leaders of businesses that have not yet launched may experience some difficulty gaining a comprehensive view of threats and weaknesses. Therefore, SCORE, the Counselors to America's Small Business, recommends that new business owners seek assistance from those with industry experience when performing a SWOT analysis.