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SWOT Analysis

A structured assessment that lists internal strengths and weaknesses and external opportunities and threats for an organization, project, or specific option to guide decisions.

Key Points

  • Organizes insights into a 2x2 view: strengths, weaknesses, opportunities, and threats.
  • Distinguishes internal factors (strengths, weaknesses) from external factors (opportunities, threats).
  • Often performed during initiation and planning, then updated as conditions change.
  • Findings inform strategy, scope choices, risk responses, staffing, and stakeholder engagement.

Example

A team planning a new customer self-service portal runs a SWOT. Strengths: strong in-house API expertise. Weaknesses: limited UX capacity. Opportunities: rising customer demand for 24/7 support. Threats: upcoming data privacy regulation changes. The project manager allocates budget for a UX contractor, adds a compliance review to the plan, and emphasizes API reuse to speed delivery.

PMP Example Question

Which tool should the project manager use to systematically capture internal capabilities and gaps along with external market openings and risks to shape the project strategy?

  1. PESTLE analysis
  2. RACI matrix
  3. Pareto chart
  4. SWOT analysis

Correct Answer: D — SWOT analysis

Explanation: SWOT documents strengths, weaknesses, opportunities, and threats to guide strategic decisions. PESTLE scans the external environment only, RACI defines roles, and a Pareto chart prioritizes causes by frequency.

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