Project SWOT Analysis is a kind of situation analysis in which internal strengths and weaknesses of an organization, as well as external opportunities and threats faced by this organization are identified and closely examined to develop an effective strategy for managing projects. This analysis aims to create a project environment in a way that takes great advantage of abilities and opportunities the organization has.
SWOT analysis is an important part of the project planning process. It helps uncover opportunities and identify threats before a project is designed and scheduled. By understanding internal weaknesses and strengthens, an organization can identify and evaluate external factors (opportunities and threats) that are favorable or unfavorable to achieving project objectives. Through the analysis the organization manages and eliminates any threats that could otherwise cause uncertainty or even failure.
SWOT analysis in project management means that a project-oriented organization has:
- Strengths that help achieve project goals
- Weaknesses that stop or prevent achievement of project goals
- Opportunities that provide alternative ways for achieving project goals
- Threats that can damage or break the project environment.