What is SWOT Analysis in Internet Business?

SWOT Analysis is a analytical tool used in conjunction with a Strategic Planning Process for most business sectors including Internet Business. It involves data collection, analyzing it for its impact, then prioritize them and use it to formulate strategic options based on the data.

SWOT is an abbreviation for Strengths; Weaknesses; Opportunities and Threats. It is categorized into the Internal and External Factors. For this purpose, Strengths and Weaknesses are referred to Internal Factor, whereas Opportunities and Threats are referred to External Factor.

Before using the SWOT Analysis, data collection is needed from the Market, Business Policies, Competitions and Internal capabilities. Other analytical tools are sometime used to collect external data such as the Michael Porter’s 5-Forces of Competitions and PEST Analysis. Internal Factors data are collected from internal operation record or new data collection. As the data may end up too many, a prioritization process is used to narrow down the list of data for each of the four SWOT factors.

Below are example of data to illustration Internet Business in the SWOT Factors:-


  1. Broad knowledge in Internet Business and various strategies
  2. Knowledgeable in several niche
  3. Writing ability


  1. Poor implementation of traffic generation strategy
  2. Not able to develop own product


  1. Online purchase for special has increased in territory other than America
  2. Management Knowledge-based niche remain strong due to increasing online research by student


  1. Prolong Interruption in Hosting support
  2. Infringe of Internet Security

In real life, the data are many for all the four factors. The above are merely examples for illustration to place the data in their respective SWOT factor.