What does a SWOT analysis evaluate?

A SWOT analysis evaluates an organization's Strengths, Weaknesses, Opportunities, and Threats. This strategic planning tool is utilized to assess both internal and external factors that can affect the success of a business or project.

Strengths refer to the internal attributes and resources that support a successful outcome, such as a strong brand reputation, skilled workforce, or financial resources. Weaknesses are the internal factors that may hinder performance, like inadequate supply chains or lack of expertise. Opportunities are external factors that a business can exploit to its advantage, including market trends or regulatory changes that can lead to growth. Lastly, threats are external challenges that could damage performance or viability, such as increased competition or economic downturns.

By analyzing these four components, organizations can create strategies that maximize strengths and opportunities while addressing weaknesses and mitigating threats, enabling better decision-making and strategic planning.