What does SWOT stand for in strategic analysis?

The term SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This framework is widely used in strategic analysis to help organizations assess their internal and external environments.

Strengths refer to the positive attributes, resources, and capabilities that an organization possesses, giving it an advantage over competitors. Weaknesses highlight the areas where the organization may be lacking or where it could improve, which helps in identifying internal challenges. Opportunities are external factors or trends that the organization can leverage to enhance its performance, while threats are potential challenges or obstacles that could impede progress.

Using the SWOT analysis allows businesses to develop strategies that effectively utilize their strengths, address weaknesses, capitalize on opportunities, and mitigate threats. This structured approach is essential for strategic planning and decision-making, ensuring a comprehensive understanding of the organization's position in its market.