The SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) method is one of the basic tools of business planning and analysis. A SWOT analysis of a business or project helps to reveal strengths, weaknesses, opportunities and threats.
– Strengths: Positive aspects of the business or project, internal factors that can provide an advantage over competitors. For example, high-quality products, a strong brand or a team of experts.
– Weaknesses: Negative aspects of the business or project, internal factors that can hinder success. For example, high costs, low resources or insufficient infrastructure.
– Opportunities: Positive opportunities in the external environment of the enterprise or project that can be exploited for successful expansion, growth or development. For example, new market demands, technological developments or a favorable economic environment.
– Threats: Negative factors in the external environment of the business or project that may endanger success. For example, competitive environment, pricing policy, regulatory changes or economic instability.
A SWOT analysis helps a business or project group to take advantage of strengths, manage weaknesses, exploit opportunities and prevent threats. In this way, it contributes to the development of an effective strategy and the making of successful business decisions.