What Is The Purpose of a SWOT Analysis?
A SWOT analysis is a tool that can be used to assess a company’s strengths, weaknesses, opportunities, and threats. It is an internal-external analysis that allows you to identify the factors that will positively or negatively affect your business. A SWOT analysis can be used to assess a company’s competitive position and develop strategies to improve its position. The four elements of a SWOT analysis are often represented in a two-by-two matrix. The strengths and weaknesses of a company are internal factors, while the opportunities and threats are external factors. A company’s strengths can be used to exploit opportunities and offset its weaknesses; its weaknesses can be addressed through strategies that seek to improve its strengths or take advantage of opportunities; while the threats faced by the company can be mitigated by its strengths or taken advantage of by using opportunities.
