A SWOT analysis is used to help companies assess the positive and negative aspects of their business so that it can develop a better strategy for future performance. A SWOT analysis can be used when creating a project, product, or service.
Strengths – Refers to the company’s strongest attributes that can be used to its advantage. This can include things such as a strong brand name and a loyal customer base.
Weaknesses – Attributes that can negatively affect performance–for example, weak brand name and lack of capital.
Opportunities – External factors that can be used as an advantage, such as favorable governmental regulations or increasing demand in a new market.
Threats – External factors that can harm results. For example, strong competition or inadequate infrastructure.