What is a SWOT analysis used for?

A SWOT analysis is a strategic planning tool that helps organizations assess their internal strengths and weaknesses, as well as external opportunities and threats in their environment. By identifying strengths, an organization can leverage these advantages to enhance its performance. Weaknesses highlight areas that need improvement, allowing for strategic planning to overcome these challenges. Opportunities represent external factors the organization can exploit for growth, and threats are external challenges that could hinder progress. This comprehensive framework assists teams in making informed decisions and formulating strategies that align with both their capabilities and market realities. Through this analysis, businesses can develop a clearer understanding of their positioning and make strategic adjustments to their plans.