Define SWOT analysis in business.

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SWOT Analysis is a strategic planning tool used in business to identify and evaluate the internal and external factors that can affect the success of a project, product, or organization. The acronym SWOT stands for:

 S – Strengths (Internal, Positive)

• Characteristics of the business or team that give it an advantage over others.

• Examples: strong brand reputation, skilled workforce, proprietary technology, loyal customer base.

W – Weaknesses (Internal, Negative)

• Internal factors that place the organization at a disadvantage compared to competitors.

• Examples: limited resources, lack of expertise, outdated technology, weak online presence.

 O – Opportunities (External, Positive)

• External factors the organization could exploit to its advantage.

• Examples: emerging markets, industry trends, regulatory changes, technological advancements.

T – Threats (External, Negative)

• External elements that could cause trouble or challenge the success of the business.

• Examples: new competitors, economic downturns, changing customer behavior, legal risks.

Why Use SWOT Analysis?

• Helps businesses understand their position in the market.

• Guides strategic planning and decision-making.

• Identifies areas for improvement and growth.

• Supports risk management and opportunity assessment.

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