Definition of Swot Analysis
SWOT analysis is a tool used by organizations to understand their strengths and weakness as well as evaluate the opportunities and threats posed by the environment in which they are working. Strength and weaknesses are the organization’s internal factors over which organizations have control. Companies evaluate their available resources, manpower, technology, finances, and capabilities internally to introduce new products or services in the market.
Opportunities and threats are external factors that are important for the company to tap because organizations have no or limited control over them. The complete 360 degrees internal and external analysis helps companies to develop their strategies. This analysis brings innovation, sustainable growth, and adjustments to processes to remain competitive in the market.