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SWOT Analysis

A structured planning technique that reviews a project's internal strengths and weaknesses together with external opportunities and threats, highlighting factors that could influence outcomes and guide decisions.

Key Points

  • Assesses internal factors (strengths, weaknesses) and external factors (opportunities, threats).
  • Supports strategy, risk responses, and prioritization in project and product planning.
  • Typically facilitated as a collaborative 2x2 matrix; quick to run and easy to understand.
  • Should be revisited as conditions change, with outputs turned into concrete actions.

Example

An agile fintech team runs a 60-minute SWOT before release planning. Strengths: strong DevOps pipeline; Weaknesses: limited domain expertise. Opportunities: new open-banking APIs; Threats: pending regulatory changes. They add training tasks and compliance stories to the backlog and adjust the release roadmap accordingly.

PMP Example Question

During iteration 0, a product team wants to quickly summarize internal capabilities and limitations along with external market conditions to steer the release plan. Which tool should they use?

  1. SWOT analysis
  2. RACI matrix
  3. Monte Carlo simulation
  4. Earned Value Management

Correct Answer: A — SWOT analysis

Explanation: SWOT consolidates internal strengths/weaknesses and external opportunities/threats to inform planning. The other options address roles, probabilistic schedule/cost risk, or performance measurement.

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