What does SWOT analysis stand for?

SWOT analysis is a strategic planning tool used to identify and assess the internal and external factors that can impact an organization's success. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths refer to the internal attributes and resources that support a successful outcome, such as unique capabilities or advantages the organization possesses. Weaknesses are internal limitations or challenges that may hinder progress or performance. Opportunities denote external factors that the organization could exploit to its advantage, such as market trends or regulatory changes that could lead to growth. Lastly, threats encompass external challenges or risks that could negatively impact the organization, such as competitive pressures or shifts in consumer preferences.

By systematically evaluating these four areas, businesses can develop strategies that leverage their strengths, address their weaknesses, capitalize on opportunities, and mitigate threats, ultimately leading to informed decision-making and strategic positioning in the market.