What is a SWOT analysis?

A SWOT analysis is a strategic planning tool that stands for Strengths, Weaknesses, Opportunities, and Threats. It is used by organizations to identify internal and external factors that can impact their success.

Strengths and weaknesses are typically internal factors. Strengths refer to what the organization does well, such as unique resources or capabilities that provide a competitive advantage. On the other hand, weaknesses are areas where the organization may be lacking or at a disadvantage compared to competitors.

Opportunities and threats, however, are external factors. Opportunities are potential areas for growth or improvement that the organization can capitalize on, while threats are external challenges or obstacles that could jeopardize the organization's performance.

By conducting a SWOT analysis, businesses can gain valuable insights into their current position in the market and develop strategies that leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats. This comprehensive assessment is crucial for informed decision-making and effective planning in business management.