What are common mistakes when performing a SWOT analysis?
A SWOT analysis can be incredibly valuable — but only if done right. Without the right approach, it can quickly shift from helpful to misleading.
Let’s go over a few common pitfalls and how to avoid them.
1. No clear scope or goal
Why are you doing this analysis in the first place? If there’s no defined purpose, your team might lose focus halfway through, unsure of what they’re actually trying to uncover. That’s when the process starts feeling scattered and unproductive. Set clear expectations upfront. This helps you stay focused, capture only the most relevant factors, and tie everything back to your strategic intent.2. Missing objectivity
Biases happen — whether it’s personal opinions, internal politics, or just group thinking. But when those take over, your analysis loses its edge. The fix? Bring in diverse perspectives and people who care deeply about the company’s direction, not just the status quo. And most importantly, ask: Is this backed by data or just a gut feeling? Grounding your SWOT in reality is what makes it valuable, not just theoretical.3. General statements
It’s easy to fall into the trap of saying things like “Customer churn is high” or “Pipeline is weak.” These might be valid, but they’re too broad to act on. Encourage your team to go deeper. Every claim should be backed by data or at least sound reasoning. The more specific you get, the easier it becomes to turn insights into action. Once you have the facts, it’s okay to layer in assumptions if you treat them as assumptions. That thinking invites more profound questions and helps you build a plan to validate what you don’t yet know.4. Ignoring external factors
This usually shows up as underestimating the threat. Teams tend to focus on internal dynamics, which makes sense, since they feel more controllable. But that’s not the whole picture. External threats — like market shifts, new competitors, or regulatory changes — can easily disrupt even the strongest internal setup. The key is to cross-check: How do your internal strengths and weaknesses hold up against the outside world? For a complete view, pair your SWOT with analyses like PESTLE, Porter’s 5 Forces, or the TOWS matrix — depending on your strategy focus. The more context you bring in, the better your decisions will be.5. Too optimistic and protective approach
It’s natural to think your company does things the right way. Most teams do. But a SWOT analysis is not about bringing comfort or pride. Its goal is to bring clarity and context for meaningful discussions. If you focus only on your strengths, you risk becoming complacent. On the flip side, if you dwell too much on weaknesses, you can kill optimism and momentum. The key is to stay balanced. Give equal weight to all four areas — Strengths, Weaknesses, Opportunities, and Threats — so your strategy is grounded in reality, not wishful thinking.6. Mistaking Weaknesses with Threats and vice versa
It’s a common mistake. Some factors — like employee turnover — can be misclassified as threats when they’re actually internal weaknesses. Here’s the difference:- Weaknesses are internal. You can take action on them right away.
- Threats are external. You can’t control them, but you can prepare for them.