What is primarily analyzed in a SWOT analysis?

In a SWOT analysis, the primary focus is on evaluating the internal strengths and weaknesses of a business, alongside the external opportunities and threats it faces in its environment. This analysis is designed to provide a comprehensive overview that helps organizations understand their current position and strategize effectively.

Focusing on internal business performance allows organizations to identify what they do well (strengths) and where they may be lacking (weaknesses). This can include assessing resources, capabilities, processes, and overall operational efficiency. Understanding these factors is crucial as it enables businesses to leverage their strengths and address their weaknesses in pursuit of strategic goals.

While external market trends, customer feedback, and the competitive landscape are certainly important aspects to consider for a holistic strategic plan, they are not the main components that SWOT analysis is built upon. Instead, they are generally analyzed in conjunction with the insights gained from evaluating internal factors, thereby contributing to a more robust strategic framework.