SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It’s an analytical tool used to analyze an organization’s internal and external environment in order to identify its competitive advantages and disadvantages.
The benefits of a SWOT Analysis are numerous. It allows you to identify your organization's strengths and weaknesses and to identify external opportunities and threats. It also allows you to formulate strategies based on the analysis and to make informed decisions.
SWOT Analysis: Identifying Strengths, Weaknesses, Opportunities, and Threats
- The Strength portion identifies the organization’s capabilities that can be leveraged to gain competitive advantage. It includes the organization’s resources and capabilities such as its human capital, technology or financial resources.
- The Weakness portion identifies areas where the organization is lacking in resources or capabilities. This includes identifying areas of the organization that need improvement or can be improved upon.
- The Opportunities portion identifies external opportunities that the organization can pursue to gain competitive advantage. It includes external factors such as market trends, customer needs and industry dynamics.
- Finally, the Threats portion identifies external risks that the organization may face. This includes external factors such as competitors, technology and regulations.