The Concept of SWOT Components Matrix Analysis

SWOT analysis is one of the most straightforward ways to analyze the state and position of a company concerning internal and external factors. This methodology allows adjusting the strategic plan to remain relevant and increase operations’ quality (White, 2018). Since this analysis method makes it easy to assess both the strengths and weaknesses, it is essential for the strategy development process. The critical information from the matrix is the identified strategies corresponding to the SWOT components: strengths, weaknesses, opportunities, threats. In the existing matrix, they are grouped into four categories, combining two components, external and internal.

This way of forming the matrix allows not only to analyze the advantages and disadvantages of the company separately but also to identify strategies that best address these factors. For example, the backward integration strategy shown in the table improves a company’s performance by combining strong internal resources with external capabilities. Therefore, such strategies enable the most beneficial use of all aspects of the company. Incorporating these recommendations and action lines into strategic plans will significantly improve the company’s position by implementing strengths and the strengthening of weaknesses.

The Growth Share Matrix, also sometimes called the Boston Consulting Matrix after the organization’s name in which it was published, is a table that can be conditionally divided into four cells. Its primary purpose is to provide an opportunity to set priorities for various business areas of a company (“What is the growth share matrix,” n.d.). Depending on the business’s growth and market share, it can be classified as a “star”, “cash cow”, “question mark”, or “pet”.

Each category has its quarter in the table, and each classification has recommendations for further action. So, for example, “stars” mean great investment opportunities and correspond to the upper left corner of the matrix. In contrast, “pets” take the opposite position, and they need to be divested or liquidated (“What is the growth share matrix,” n.d.). According to the analysis, almost all Domino’s Pizza business projects are in the “stars” area, having a high growth rate and a market position. In two categories, the company is the top firm in the industry, which means a clear need for further investment. Such an analysis makes it possible to form recommendations for actions concerning existing projects or departments, which is an integral part of strategic planning. In this particular case, the analysis carried out allows recommending further investment in the designated areas.

The last used Internal-External (IE) matrix is similar to the previous one in terms of visual representation of information. The data is also analyzed depending on the object’s location in one of the areas; however, 9 positions are allocated in the form of a 3×3 table. There are three key areas: the upper left corner, the lower right corner, and the diagonal, each with different strategic implications (“Internal-external (IE) matrix,” n.d.). Similar to the previous matrix, by analyzing the location of a business or department in the matrix, one can conclude the future strategy.

As part of this analysis, it was found that out of the four areas studied, the supply chain falls into the “grow and build” section, the international franchise falls into the “harvest or divest” section, and the remaining two areas fall into the “hold and maintain.” Their location is calculated based on the attractiveness of the business in the industry and the strength of the business (“Internal-external (IE) matrix,” n.d.). Thus, this analysis provides direct recommendations for action regarding specific departments. While the supply chain deserves full support, the international branch is at a disadvantage and needs to be reworked. Taking these factors into account in the strategic plan will allow for a more efficient reallocation of resources. The analysis of these three matrices showed that the organization has several advantages that can be quickly developed to increase the organization’s value further. However, some activities, especially those related to the international market, are risky and can bring more losses than profits. Therefore, when developing capitalization strategies, it is necessary to make additional investments in the supply chain, which is its strongest point.


Internal-external (IE) matrix. (n.d.). MBA Knowledge Base. Web.

What is the growth share matrix? (n.d.). Boston Consulting Group. Web.

White, S. K. (2018). What is SWOT analysis? A strategic tool for achieving objectives. CIO. Web.

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