What are the components evaluated in a SWOT analysis?

The components evaluated in a SWOT analysis are strengths, weaknesses, opportunities, and threats. This strategic planning tool helps organizations assess their internal capabilities and external environment.

Strengths identify what the organization does well, which can be leveraged for competitive advantage. Weaknesses highlight areas where improvements are needed or where the organization may be at a disadvantage. Opportunities refer to external factors that the organization could exploit for growth or improvement, while threats encompass external challenges that could hinder performance or success.

This framework encourages a comprehensive view of both internal and external factors affecting an organization, facilitating informed decision-making and strategic planning. By focusing on these four key elements, organizations can develop strategies that align with their capabilities while responding effectively to market conditions.