What does SWOT analysis stand for?

SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats. This analytical framework is widely used in strategic planning and risk assessment, as it helps organizations identify internal and external factors that can influence their success.

Understanding strengths allows a company to leverage its advantages, while recognizing weaknesses helps in mitigating potential vulnerabilities. Opportunities highlight areas for growth and potential market advantages that the organization can pursue. Lastly, threats address external risks or challenges that could impact the organization adversely.

By systematically assessing these four dimensions, decision-makers can develop informed strategies that enhance their competitive edge and prepare for potential challenges, making SWOT analysis a vital tool in risk management and strategic planning processes.