What does a SWOT analysis evaluate?

A SWOT analysis evaluates Strengths, Weaknesses, Opportunities, and Threats. This analytical tool is essential for businesses and organizations as it helps in identifying internal and external factors that can affect the growth and success of a project, strategy, or the overall organization.

Strengths refer to the internal attributes and resources that support a successful outcome, such as a strong brand reputation or loyal customer base. Weaknesses represent the internal challenges that may hinder performance, like a lack of resources or skills. Opportunities are external factors that the organization can leverage for growth and advantage, like emerging markets or technological advancements. Threats are external challenges that could jeopardize the organization’s performance, including competition or regulatory changes.

By systematically analyzing these four dimensions, businesses can strategically position themselves to capitalize on their strengths and opportunities while addressing weaknesses and mitigating threats, ultimately leading to informed decision-making and strategic planning.