SWOT Analysis

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to

evaluate a company’s competitive position and to develop strategic planning.
SWOT analysis assesses internal and external factors, as well as current and future potential.
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths
and weaknesses of an organization, initiatives, or within its industry.
The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray
areas and instead focusing on real-life contexts.
Companies should use it as a guide and not necessarily as a prescription
Strengths A skill, resource, or other advantage that a firm has relative to its competitors that
is important to serving the needs of customers in its marketplace.
Weaknesses A limitation or lack of skills, resources, or capabilities that impedes a firm’s
effective performance
Opportunities Opportunities are any feature of the external environment which creates
conditions that a business can exploit to its advantage. If the business is successful in exploiting
opportunities, then it will be better placed to achieve its objectives.
Threats Threats are any aspect of the external environment which cause problems and
which may prevent achievement of objectives. Almost by definition, what presents a threat to
one business offers an opportunity to other businesses.