SWOT Analysis

SWOT Analysis is a strategic framework used to evaluate an organization's Strengths, Weaknesses, Opportunities, and Threats before making significant strategic decisions. The framework combines internal analysis with external evaluation, encouraging organizations to examine how their capabilities align with changing market conditions.

Strengths and Weaknesses describe internal organizational characteristics, while Opportunities and Threats originate from the external environment. Effective SWOT Analysis goes beyond listing observations by examining the relationships between these four dimensions. For example, an organizational strength may enable the pursuit of a specific opportunity, while an identified weakness may increase exposure to an emerging threat.

Although widely used because of its simplicity, SWOT Analysis produces meaningful strategic value only when supported by credible evidence rather than subjective opinion.