A SWOT analysis examines the internal factors (strengths and weaknesses) and external factors (opportunities and threats) specific to a given company, and is used to assess a company’s potential, to identify new paths forward, or to identify potential problems the company might experience.
SWOT analyses include 4 key components:
- Company’s internal strengths
- Company’s internal weaknesses
- Existing or emerging opportunities within the market
- Existing or emerging threats in the market
Each SWOT analysis includes all 4 components.
Porter’s Five Forces Model identifies and analyzes the competitive forces shaping a particular industry/market, and outlines the market’s strengths and weaknesses.
Five forces analyses include 5 key components:
- Industry/market competition
- Potential for new market players
- Power of market suppliers
- Power of customer base
- Threats of substitute products
Each five forces analysis includes all 5 components.