Definition of SWOT:

• S = strengths, which give a business an advantage over others.

• W = weaknesses, which give it a disadvantage.

• O = opportunities, which a business could usefully .

• T = threats, which may cause trouble.

Internal factors (strengths and weaknesses):

• Examples include:

• what a firm sells.

• the price of its products or services.

• all the firm’s .

• the firm’s financial situation and output possibilities.

External factors (opportunities and threats):

• These are usually outside a company’s control.

• Understanding them can reduce a company’s exposure to .

• Factors include:

• activities of other businesses.

• changes in society and fashions.

• new  that are made.

• what happens in the marketplace.

Uses of SWOT analysis:

• For seeing what’s changing in a particular area.

• For reviewing a business’s strategy every .
•  departments of many companies do a SWOT analysis on their principal competitors.

• SWOT is a useful technique not only for profit-making companies, but also for:

• .

• projects in the community.

• other non-profit groups.

Advantages of SWOT analysis:

• Conducting a SWOT is , as anyone can do it.

• It improves a person’s understanding of their organisation.

Limitations of SWOT analysis:

• Because an effective analysis is quick, it’s not a very detailed piece of research

• It’s based on subjective judgement, and might not be consistent.

• SWOT fails to take into consideration factors that might be particularly  in certain circumstances.