Measure performance and set targets
SWOT, PESTLE and other models for strategic analysis
Business analysis models help you understand your business environment and make better strategic decisions. There are many tools available, but some of the most widely used include:
- SWOT analysis (strengths, weaknesses, opportunities, threats)
- PESTLE analysis (political, economic, social, technological, legal and environmental)
- scenario planning
- Porter's Five Forces framework
SWOT analysis
SWOT analysis is one of the most popular tools for analysing business performance and strategy. It helps you assess:
- strengths - what your business does well
- weaknesses - areas where you can improve
- opportunities - external factors that could support growth
- threats - risks that could affect your business
Once identified, you can:
- build on your strengths
- reduce your weaknesses
- take advantage of opportunities
- minimise or reduce the impact of threats
See our SWOT analysis example.
SWOT analysis gives you a clear view of your internal and external business environment. However, it does not prioritise actions, so you may need other tools to support decision-making. To improve your analysis, consider the customer perspective. For example, use customer feedback or surveys to identify and prioritise your strengths and weaknesses.
Other strategic analysis tools
In addition to SWOT, other useful tools include:
- PESTLE analysis - helps you understand external factors that affect your business. See our PESTLE analysis example.
- Scenario planning - explores possible future outcomes and risks.
- Critical success factor analysis - identifies the key areas your business must get right to succeed.
- Porter's Five Forces - analyses competition, including suppliers, customers and market threats. Using this model, you can build a strategy to keep ahead of these influences.
Read more about strategic planning for business growth.