Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is a form of gap analysis used by management to gauge company operations. This type of analysis can be very detailed and involves more than just the internal departments of a company. Strengths and Weakness analysis is a form of gap analysis that lists how well each department is performing to management or industry standards. This is an internal review of company operations.
Opportunities and Threats are a review of external conditions that threaten a company’s success in its industry. While some say that this is too involved for gap analysis, external factors can impact a company suffering from poor internal controls. Looking at how well competitors are functioning can help management improve poor performing departments by using the other company’s model for success.