S : Strengths ( our advantages )
W : Weaknesses ( our disadvantages )
O : Opportunities ( our chances to do something good )
T : Threats ( our dangers from outside )
A SWOT analysis is a step-by-step process used to evaluate a product, industry or even a person.
The first step in a SWOT analysis is identifying the objective or goal of the business project. The next step is identifying the favorable and unfavorable things that could affect that objective, both internally and externally. This means identifying the strengths, weaknesses, opportunities and threats (SWOT) to whatever is being analyzed.
Strengths are what give the business or project an advantage. It could be high-quality products. Weaknesses are what put the business or project at a disadvantage – for example, outdated software. Opportunities are things that the business could use to its advantage – for instance, a lack of competition in Africa. Threats are things that could cause problems for the business. This could be something like a new, advanced product from a competitor.
SWOT is a very important process for analyzing a company’s situation to help planning be more effective. It might even tell planners that a project is not possible and cause a complete change in plans. Success depends on many things, and SWOT can be a very valuable tool in achieving that success.