A SWOT analysis is a strategic planning framework used to identify and evaluate an organization's internal strengths and weaknesses, as well as external opportunities and threats. It helps organizations understand their competitive position and make informed decisions by assessing factors that can affect their success
Components of SWOT Analysis
- Strengths: Internal positive attributes that give the organization an advantage, such as strong brand, expertise, or resources.
- Weaknesses: Internal limitations or areas needing improvement that hinder optimal performance.
- Opportunities: External favorable factors or trends that the organization can exploit for growth or advantage.
- Threats: External challenges or risks that could negatively impact the organization.
Purpose and Use
SWOT analysis is used widely in business, government, nonprofits, and personal planning to guide strategic decisions by providing a clear picture of current realities and future possibilities. It supports identifying competitive advantages, mitigating risks, and capitalizing on growth opportunities
How It Works
Typically presented as a four-quadrant table, SWOT analysis involves:
- Defining a clear objective.
- Gathering relevant internal and external data.
- Listing strengths, weaknesses, opportunities, and threats.
- Using this insight to develop strategies aligned with the organization's goals
In summary, SWOT analysis is a versatile, fact-based tool that helps organizations evaluate their position and plan strategically by balancing internal capabilities against external market conditions
