What does a SWOT analysis identify?

A SWOT analysis is a strategic planning tool used to identify and evaluate the internal and external factors affecting an organization. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and Weaknesses are internal factors that reflect the company’s resources and capabilities, such as brand reputation, operational efficiencies, and financial health. Opportunities and Threats, on the other hand, are external factors, including market trends, competitive dynamics, and regulatory changes.

By assessing these four areas, businesses can better understand their current standing and develop strategies to leverage their strengths, improve upon weaknesses, capitalize on opportunities, and mitigate threats. This holistic view aids in comprehensive strategic planning and decision-making.