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WHAT IS SWOT ANALYSIS?



SWOT analysis is a tool used to evaluate the internal and external factors that can affect an organization. SWOT stands for:


  • Strengths: characteristics of the organization that give it an advantage over competitors

  • Weaknesses: characteristics that place the organization at a disadvantage compared to competitors

  • Opportunities: external factors that the organization can take advantage of

  • Threats: external factors that could negatively impact the organization


The purpose of a SWOT analysis is to identify the organization's strengths and weaknesses, as well as the opportunities and threats it faces. This information can then be used to develop strategies for addressing weaknesses, taking advantage of opportunities, and mitigating threats.


To conduct a SWOT analysis, an organization typically gathers input from a variety of sources, including internal stakeholders (such as employees and managers) and external stakeholders (such as customers and industry experts). This input is used to identify the key factors in each of the four categories. The organization can then use this information to create a SWOT matrix, which maps out the strengths, weaknesses, opportunities, and threats in a visual format.


SWOT analysis is often used as part of the strategic planning process, as it helps organizations understand their current position and identify areas for improvement. It is also commonly used as a way to assess the potential success of a new product or business venture.


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