SWOT Analaysis (or Strengths, Weaknesses, Opportunities, and Threats) is an excellent matrix for identifying the key internal and external factors that are important to achieving a Company's objective (s), and developing strategies that minimize, or overcome, the identified weaknesses and threats to acheiving that objective and take advantage of the strengths and opportunities in that pursuit.
Strengths and weaknesses are internally oriented. Internal factors include (but are not limited to) such things as financial, operational, people, and intellectual resources, competitive capabilities, cost advantages, or other financially relevant factors, and each can be viewed as strengths or weaknesses depending upon their impact on the organization's objectives.
Opportunities and threates are external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position.
SWOT analysis, therefore, provides a methodology for developing a context for decision making.
