What is a SWOT analysis used for?

A SWOT analysis is a strategic planning tool that helps organizations evaluate their internal strengths and weaknesses, as well as external opportunities and threats. This assessment is essential for understanding the current position of a business or a project within its market or environment. By focusing on strengths, a company can leverage what it does best to gain competitive advantages. Identifying weaknesses allows for the recognition of areas needing improvement or correction. Opportunities highlight potential areas for growth or new market entrances, while threats pose challenges that the organization must prepare for or mitigate against. This comprehensive view helps in crafting informed strategies for success, making it a valuable framework in various business contexts.