What does the acronym SWOT stand for in business analysis?

The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This framework is widely used in business analysis as a strategic planning tool to help organizations assess both internal and external factors that can impact their operations and decision-making.

Strengths refer to the internal attributes and resources that support a successful outcome, such as skilled personnel or strong brand recognition. Weaknesses highlight internal factors that may hinder progress or growth, such as limited resources or areas where competitors outperform the organization. Opportunities focus on the external factors that the organization can capitalize on, such as market trends or changes in consumer behavior that could increase demand for its products or services. Lastly, Threats examine external challenges that might pose risks to the organization, such as increased competition or changes in regulation.

This comprehensive analysis enables businesses to develop strategic plans that leverage their strengths, mitigate their weaknesses, take advantage of opportunities, and prepare for potential threats.