SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities and threats involved in a business venture or project.
Strengths are internal factors within your control that make you more competitive in the marketplace. Weaknesses are internal factors that prevent you from being as competitive as you could be. These may be things like high costs or low quality of service. Opportunities are external factors that give you a chance to improve your business or achieve success. These may include a growing market segment or a new technology that makes it easier to do what you already do well. Threats are external factors that could harm your company’s ability to succeed. For example, if there is an economic downturn in the area where your company operates and many people lose their jobs, this could result in fewer customers for your business.
When using SWOT analysis it is helpful to think about each factor separately before combining them into one comprehensive list of strengths, weaknesses, opportunities and threats (SWOT).
