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SWOT Analysis

SWOT analysis is a strategic planning tool used by organizations to identify internal Strengths and Weaknesses, as well as external Opportunities and Threats. This framework helps businesses assess their competitive position and make informed decisions by analyzing factors both within the company and in the broader market environment. SWOT analysis is used to develop strategies for growth, risk management, and performance improvement.

Example

A technology company conducts a SWOT analysis, identifying its strength in innovation, a weakness in customer service, an opportunity in expanding to new markets, and a threat from new competitors.

Key points

• Strengths, Weaknesses, Opportunities, and Threats are analyzed.

• A strategic tool used to assess competitive positioning.

• Helps in decision-making, risk management, and growth strategies.

Quick Answers to Curious Questions

It provides a clear picture of internal strengths and weaknesses, while also highlighting external opportunities and threats to inform strategic decisions.

Internal factors include the company’s strengths and weaknesses, such as resources, capabilities, and areas for improvement.

By analyzing strengths and opportunities, companies can pinpoint what sets them apart from competitors and leverage these factors to gain a market edge.