What does the acronym 'SWOT' stand for in business analysis?

The acronym 'SWOT' stands for Strengths, Weaknesses, Opportunities, and Threats. This analytical framework is commonly used in business strategy to evaluate both the internal and external factors that can impact an organization.

Strengths refer to the inherent advantages and resources a business possesses, which can help it achieve its objectives. Weaknesses are areas where the business may be lacking or facing challenges. Opportunities encompass external factors or trends that the business could leverage for growth and success. Threats represent external challenges or risks that could impede progress or harm the organization.

Utilizing the SWOT analysis allows businesses to create a strategic plan that aligns their internal strengths and weaknesses with external opportunities and threats, thereby facilitating informed decision-making and effective resource allocation. This tool is invaluable for strategic planning, competitive analysis, and understanding the market landscape.