What does a SWOT analysis evaluate?

A SWOT analysis evaluates an organization's Strengths, Weaknesses, Opportunities, and Threats. This strategic planning technique is used to identify and understand both internal and external factors that can impact the viability of a project or business.

By assessing strengths, organizations can leverage their assets to maintain competitive advantages. Analyzing weaknesses helps identify areas needing improvement or potential risks. Opportunities spotlight favorable external conditions that can be capitalized on for growth, while threats identify external challenges that could jeopardize success.

Overall, a SWOT analysis provides a comprehensive framework for decision-making and strategic planning, facilitating informed choices by balancing internal capabilities with external market conditions.