What is a SWOT analysis?

A SWOT analysis is a strategic planning tool that helps organizations identify and understand their internal and external environments. By examining strengths, weaknesses, opportunities, and threats, businesses can evaluate their current position and strategize effectively for future growth and success.

Strengths refer to the internal attributes that give an organization advantages over others, such as skilled personnel or strong brand reputation. Weaknesses are internal factors that can hinder performance, like lack of resources or limited expertise. Opportunities represent external factors that the organization could exploit for its benefit, such as market trends or regulatory changes. Lastly, threats are external challenges that could pose risks to the organization, such as increased competition or economic downturns.

This comprehensive evaluation enables organizations to develop informed strategies, allocate resources efficiently, and anticipate potential challenges, ultimately guiding decision-making processes.