The Disadvantages of Using SWOT Analysi
SWOT analysis, strength, weakness, opportunities and threats analysis, provides a structure for organizations, including small businesses, to analyze it internally. The analysis examines an organization's assets, processes and past levels of achievement. While SWOT analysis provides some benefits to an organization, using it in your small business can put you at a disadvantage unless you understand its limits and risks.
Other Planning Methods
Perhaps one of the biggest disadvantages of using a SWOT analysis comes when the organization makes the decision, whether conscious or not, to only rely on the analysis for planning. While it may generate some useful information, other planning methods and tools are useful in helping an organization achieve its mission. The list of items generated by this analysis provides information or items it needs to look into deeper using other tools such as statistical surveys, focus groups or even employing a test-market strategy for a new product or service. SWOT analysis should help management begin to think about the organization and its future, instead of ending any other planning efforts.
Large or Heterogeneous Groups
This type of analysis requires a considerable amount of time and energy when used in a large organization or in a small business that is heterogeneous, since an attempt at just agreeing on the common mission may result in fighting among the different members of the group. While identifying a common mission helps give direction to its activities, SWOT analysis will not provide any results if the members cannot agree.
Related Reading: Comparison of SWOT Analysis With Portfolio Analysis
SWOT analysis generates lists of strengths, weaknesses, opportunities and threats facing the organization. While these lists provide items to consider, the list may get used incorrectly. The items do not carry certain weight or points that represent