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Purpose SWOT analysis is defective as a tool for guiding strategic planning because of its subjective, unsystematic, and non‐quantitative nature that lacks predictive power. This paper aims to present an alternative tool that overcomes these defects and is grounded in the resource‐based view of the firm. Meta‐SWOT does not take markets and other factors in the competitive environment as given but invites planners to start from resources and capabilities in determining competitive advantage. Design/methodology/approach Based on a critique of SWOT analysis, an alternative decision‐support method is presented. Meta‐SWOT is based on the inside‐out approach typical of the resource‐based view of the firm. The method is implemented in a workbook programmed in Microsoft Excel that guides decision‐makers in a systematic step‐by‐step process of questions and answers from an initial brainstorming to a prioritized list of action steps. Input decisions generate a competitive map and a strategy map that assist effective planning. The idea of strategic fit is central to the process. Findings Systematic analysis of a business and sequential decision‐making can overcome many of the weaknesses of SWOT. The paper demonstrates the implementation of a theory of business in spreadsheets and the derivation of more objective, systematic, and quantitative recommendations. Originality/value Meta‐SWOT is an original but relatively simple software that can be used for a wide range of strategic planning exercises. The Excel workbook is made available for free to interested readers.
Agarwal et al. (2012) studied this question.