Service FMEA may yield several possible corrective actions for each failure mode with large RPN. Corrective actions for each service failure are usually interrelated with the customers and environmental elements of the service system. SWOT analysis can provide an effective way to analyze the inner and outer environmental impacts for each corrective action. In this paper, we suggest a way for selecting and ranking corrective strategy in service operation based on SWOT analysis. Every candidate of corrective action strategy is ranked and evaluated on the basis of the impact factors of the SWOT variables, correlations between possible corrective actions and SWOT variables, and RPNs of service failures. The most desirable set of corrective actions is selected considering the preference score of each corrective action, required resources and budgetary allowance. The proposed methodology is demonstrated with an illustrative example.