SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It's a strategic planning framework that helps businesses evaluate their internal capabilities (strengths and weaknesses) and external environment (opportunities and threats). A well-executed SWOT analysis is the foundation for sound strategic decisions.
| Quadrant | Internal / External | What to Analyze |
|---|---|---|
| Strengths | Internal (positive) | What does your business do well? Unique resources, competitive advantages, strong customer relationships, skilled team |
| Weaknesses | Internal (negative) | Where do you struggle? Limited budget, skills gaps, poor processes, weak brand awareness |
| Opportunities | External (positive) | What market conditions work in your favor? Emerging trends, competitor gaps, new technologies, changing customer needs |
| Threats | External (negative) | What could harm your business? New competitors, economic shifts, regulatory changes, supply chain risks |
SWOT analyses are valuable for businesses of any size. Startups use them during planning, growing businesses use them before major decisions, and established companies run them annually as part of strategic planning. If you're considering a new product, market expansion, or major pivot — do a SWOT first.