Which of the following is a drawback of the SWOT analysis? This framework is only applicable to the manufacturing industries; it is ineffective when applied to the service firms. The SWOT analysis takes into account only the internal environment of a firm, ignoring the equally important external environment. A drawback of this framework is that it allows managers to evaluate only a firm's current situation and not its future prospects. A problem with this framework is that a strength can also be a weakness, and that an opportunity can also simultaneously be a threat.

Strengths can be weakness: Companies through SWOT identify their strengths, and they spend most of their time to get grip over it. As much as time they spend doing it, the other spots(strength to be) for the company will be blurred. So that particular strength will work as their weaknesses.

For example: Company A relies on labor for packaging and they are really good at it in terms of saving time. Although, in modern times where other companies can reduce cost by using tech and can replace their work, but Company A is still using their old methods. Company A's strength will be then turned into their weakness i-e, not adapting change.

Opportunity can also simultaneously be a threat: When a company identifies that what is their potential for future in market, they will most probably try to achieve it, make it real. Although their are various risks that comes with opportunities, and if the opportunity is not assessed thoroughly it can harm the interests of the company.

For example: One company thinks that it's better to export goods outside because of globalization. But when the company exports their first batch a natural hazard destroys it's full batch. This threat would have been clear, if the company has assessed the opportunity thoroughly.