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 and strategic planning to evaluate the internal and external factors that can impact an organization.

Strengths and weaknesses relate to the internal environment of the organization, helping to identify what the organization does well and where it can improve. Opportunities and threats, on the other hand, pertain to the external environment, focusing on potential areas for growth and challenges that may arise. By carefully analyzing these four elements, businesses can create strategies that leverage strengths, mitigate weaknesses, capitalize on opportunities, and defend against threats.

This structured approach is essential for informed decision-making and strategic planning, making it a foundational tool in business analysis.