Using SWOT Analysis to Gain Strategic Insight When used effectively, a SWOT analysis can help the strategist deeply consider different strategic initiatives managers might take. The SWOT juxtaposes the firm's internal Strengths (S) and Weaknesses (W) identified through a rigorous internal analysis, such as the application of the VRIO framework, with the external Opportunities (O) and Threats (T) identified through a comprehensive external analysis, such as the application of industry analysis. This activity is important because it demonstrates how internal (S/W) and external (O/T) concepts are appropriately captured in the SWOT and how strategic initiatives managers might take can be created from the juxtaposition of these internal and the external concepts. This activity is important because as a manager, you must be able to determine both the internal and external forces that are impacting your business. It helps a company leverage its internal strengths, exploit external opportunities, and mitigate internal weaknesses and external threats. The goal of this exercise is to demonstrate your understanding of SWOT analysis by placing each strategic alternative in the appropriate classification section. Review the relevant content in Chapter 4 and then match each description of the internal or external conditions to the appropriate SWOT category