What Is 'SWOT Analysis'?

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Strength, Weakness, Opportunity, and Threat (SWOT) Analysis SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential. A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, its initiatives, or an industry. The organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts. Companies should use it as a guide and not necessarily as a prescription. Read More » Related to "Strength, Weakness, Opportunity, and Threat (SWOT) Analysis" Porter's 5 Forces vs. SWOT Analysis: What's the Difference? Porter's 5 Forces and SWOT analysis are both tools companies use to analyze and make strategic decisions. Porter's 5 Forces is used to analyze the competitive environment within an industry, while a SWOT analysis tends to look more deeply within an organization to analyze its internal potential. Read More » Microeconomics vs. Macroeconomics: What's the Difference? Economics is divided into two different categories: microeconomics and macroeconomics. Microeconomics is generally the study of individuals and business decisions, while macroeconomics looks at higher up country and government decisions. Read More » What is comparative advantage? Learn about comparative advantage, the economic law that is the foundation for free-trade arguments. Read More » Related Definitions PEST Analysis PEST Analysis is a method whereby an organization assesses major external factors that influence its operation to become more competitive in the market. Read More » Porter's 5 Forces Porter's 5 Forces is a model that identifies and analyzes the competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. Read More » Fundamental Analysis Fundamental analysis is a method of measuring a stock's intrinsic value. Analysts who follow this method seek out companies that are currently priced below their real worth. Read More » Strategic Management Strategic management is the management of an organization's resources in order to achieve its goals and objectives. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy