What is the purpose of a SWOT analysis?

The purpose of a SWOT analysis is to evaluate Strengths, Weaknesses, Opportunities, and Threats related to a business or project. This framework helps organizations assess both internal and external factors that can affect their success. By identifying strengths, a company can leverage these advantages to optimize performance. Recognizing weaknesses allows for improvements that can mitigate potential risks and enhance overall effectiveness. Opportunities highlight potential areas for growth or innovation, while threats point out external challenges that may impact stability and profitability.

This comprehensive approach enables strategic planning and decision-making, guiding companies in aligning resources and capabilities with market conditions. By having a clear understanding of these four aspects, businesses can create strategies that foster sustainability and competitive advantage.