SWOT analysis (strengths, weaknesses, opportunities, and threats) is a framework for assessing a company’s competitive position and developing strategic plans. Internal and external variables, as well as present and future possibilities, are all evaluated in a SWOT analysis.
A SWOT analysis is a tool for taking a realistic, fact-based, data-driven look at an organization’s, initiative’s, or industry’s strengths and weaknesses. The organization must maintain the accuracy of the study by avoiding preconceived notions or grey zones and instead concentrate on real-world scenarios. It should be used as a suggestion rather than a prescription by businesses.
SWOT analysis is a method for evaluating a company’s performance, competitiveness, risk, and potential, as well as parts of a company like a product line or division, an industry, or another organization.
Using both internal and external data, the method can direct organizations toward more successful strategies and away from those that have been or are expected to be less successful. They can also get advice from independent SWOT analysts, investors, or rivals on whether a business, product line, or industry is strong or weak, and why.