SWOT analysis is a strategic planning and management technique used to identify the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. It is also known as situational assessment or situational analysis. The technique is designed for use in the preliminary stages of decision-making processes and can be used as a tool for evaluation of the strategic position of organizations of many kinds, including for-profit enterprises, local and national governments, and NGOs.
A SWOT analysis assesses internal and external factors, as well as current and future potential, to evaluate a companys competitive position and to develop strategic planning. The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision.
The SWOT framework is credited to Albert Humphrey, who tested the approach in the 1960s and 1970s at the Stanford Research Institute. SWOT analysis was originally developed for business, but it is also used by nonprofit organizations and individuals for personal assessment.
Some key points to remember about SWOT analysis are:
- SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
- It is a framework for identifying and analyzing an organizations internal and external factors.
- It is used to evaluate a companys competitive position and to develop strategic planning.
- It is designed for use in the preliminary stages of decision-making processes.
- It can be used as a tool for evaluation of the strategic position of organizations of many kinds.
- It is intended to identify the internal and external factors that are favorable and unfavorable to achieving the objectives of the venture or project.
