What does SWOT analysis stand for?

SWOT analysis is a strategic planning tool used to evaluate the internal and external factors that can impact the success of a project or business. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths refer to the internal attributes and resources that support a successful outcome. They highlight what a business does well compared to competitors. Weaknesses, on the other hand, are internal factors that may hinder progress or performance, identifying areas where improvement is needed.

Opportunities represent external factors that the business might exploit to its advantage, including market trends, partnerships, or favorable regulations, while Threats are external challenges or obstacles that could negatively affect the business, such as competition, economic downturns, or changing consumer preferences.

This comprehensive evaluation allows businesses to develop strategies that build on their strengths and opportunities while addressing weaknesses and mitigating threats, making it a critical component of strategic planning.