A SWOT analysis is a simple tool to help you work out the internal and external factors affecting your business. It is one of the most commonly used business analysis and decision-making tools. A SWOT analysis helps you:
- build on strengths (S)
- minimise weakness (W)
- seize opportunities (O)
- counteract threats (T).
To get the most out of a SWOT analysis, you need to conduct it with a particular business objective in mind. For example, a SWOT analysis can help you decide if you should introduce a new product or service or change your processes.
A SWOT analysis is often part of strategic planning. It can help you better understand your business and work out what areas need improving. It can also help you understand your market, including your competitors, and predict changes that you will need to address to make sure your business is successful. It is also a particularly useful step in your marketing planning process.
The following guide provides an overview of what a SWOT analysis involves and how to conduct one.