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Using the SWOT Framework in the Healthcare Sector
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Analyzing an organization using the strengths, weaknesses, opportunities, and threats (SWOT) framework generates crucial insights for decisions on major new initiatives. For example, when considering an acquisition or launching a new product or service, a SWOT analysis can raise warnings about customer sensitivities or gaps in expertise; alternatively, it can reveal new lines of business and unmet needs that may lead to new business opportunities. A SWOT analysis also serves as a typical first step in a broader strategic planning process. This technical note focuses on the use of a SWOT analysis in the healthcare sector, including recommendations for key questions to ask when initiating a SWOT analysis and advice for arranging information in a way that supports strategic decision-making. The SWOT approach has gained importance in the healthcare sector in recent years due to both market and policy shifts. Healthcare is a site for major reform as policy-makers seek to reduce costs and encourage innovation. Across the developed world and in many developing countries, better strategic decision-making is essential to healthcare providers and finance organizations as they care for ageing populations, seek to reduce the impacts of lifestyle-related diseases such as obesity, and work to manage expenses associated with treating chronic diseases.