Reassessing the SWOT Analysis Framework: Theory, Application, and Strategic Relevance in Business and Entrepreneurship

Few strategic management tools have achieved the enduring recognition and widespread adoption of the SWOT Analysis framework. Despite its apparent simplicity, SWOT analysis continues to be taught in leading business schools, applied in corporate boardrooms, used by entrepreneurs, and referenced in academic research across disciplines including strategy, entrepreneurship, public policy, and international business. SWOT's originator, Robert Franklin Stewart, emphasized the crucial role that creativity plays in the planning process. The SOFT/SWOT approach curbs mere top-down strategy making to the benefit of strategy alignment and implementation; Introducing digital means to parts of SWOT's original participative, long-range planning process, could boost the effectiveness of organizational strategizing, communication and learning (Puyt, et al., 2023). The framework’s longevity raises an important scholarly question: why does SWOT analysis persist as a dominant strategic tool despite frequent criticism regarding its rigor, subjectivity, and lack of predictive power Studies have found that SWOT analysis in conjunction with important performance models (IPA) is a highly effective and appropriate method for developing a market-driving strategy in the banking industry. It can be carried out without a complex analytical framework and conducted internally by banks solely by relying on customer surveys. Although IPA is often overlooked, using this tool in conjunction with SWOT can enhance its effectiveness in developing behavior-focused marketing strategies (Puteri, et al., 2025).

This paper argues that SWOT analysis remains relevant not because it is a complete theory of strategy, but because it serves as a powerful boundary-spanning framework that integrates internal and external perspectives into a single cognitive and analytical structure. By situating SWOT analysis within the broader landscape of strategic management theory, this paper examines its origins, conceptual foundations, methodological applications, critiques, and evolving role in contemporary business and entrepreneurship research.