SWOT analysis is a strategic planning tool commonly used in marketing to assess the internal strengths and weaknesses of a company or product, as well as the external opportunities and threats present in the market. The acronym "SWOT" stands for:
- Strengths: These are the positive attributes and characteristics that give a company or product a competitive advantage over others. Strengths may include factors such as a strong brand reputation, unique features, superior technology, skilled workforce, or efficient distribution channels.
- Weaknesses: These refer to the internal factors that hinder the company's or product's performance and put it at a disadvantage compared to competitors. Weaknesses might include aspects like poor customer service, outdated technology, limited resources, lack of expertise in certain areas, or inefficient processes.
- Opportunities: These are external factors in the market or industry that can be leveraged to the company's or product's advantage. Opportunities could include emerging market trends, untapped customer segments, technological advancements, changes in regulations, or gaps in the competition that can be exploited.
- Threats: These are external factors that pose potential risks or challenges to the company or product. Threats may arise from competition, changing consumer preferences, economic downturns, disruptive technologies, new regulations, or any other factors that could negatively impact the company's performance.
