SWOT is a tool for strategic analysis. It is used to analyze a company and the environment in which it operates.
SWOT stands for Strengths, Weaknesses, Opportunties, and Threats.
Information in a SWOT analysis is organized into internal and external factors:
- An examination of the strengths and weaknesses of a company. This is an internal look at company operations used to identify what the company does well and where it needs to improve. It focuses on the current situation.
- An examination of the external environment in which the company operates. This means identifying industry trends and outside forces that could pose Threats or provide Opportunities for the company. It focuses on the future.
