What Is a SWOT Analysis?
Greg Swanson
If you're looking to better understand your business or plan your next move, you've probably heard the term SWOT analysis. But what is a SWOT analysis, really—and how can it help you make smarter decisions?
Short Answer: A SWOT analysis is a framework for identifying your business's Strengths, Weaknesses, Opportunities, and Threats.
What Does SWOT Stand For?
- Strengths: Internal assets, resources, or advantages your business has.
- Weaknesses: Internal areas where your business lacks or struggles.
- Opportunities: External trends or changes you can take advantage of.
- Threats: External risks, competition, or challenges that could harm you.
Why Is a SWOT Analysis Useful?
- Clarity: Helps you understand where your business stands today.
- Strategy: Allows you to play to your strengths and guard against risks.
- Focus: Keeps your planning grounded in what’s realistic and actionable.
How to Do a SWOT Analysis
- Step 1: List your strengths and weaknesses based on internal resources, processes, and results.
- Step 2: Identify opportunities and threats by analyzing market trends, competitors, and customer feedback.
- Step 3: Use the insights to adjust goals, prioritize actions, or refine your strategy.
SWOT Analysis Example
For a small online clothing brand:
- Strengths: Strong social media presence, loyal customers.
- Weaknesses: Limited shipping options, no international reach.
- Opportunities: Partnering with influencers, expanding product line.
- Threats: Larger competitors with faster shipping and lower prices.
Whether you're launching a product or rethinking your business strategy, a SWOT analysis is one of the simplest tools for gaining insight. It gives you a clear look at what’s working, what isn’t, and where to focus your energy next.
Updated: July 03, 2025
What is a SWOT analysis?
A SWOT analysis is a strategic tool used to evaluate a business’s Strengths, Weaknesses, Opportunities, and Threats to aid in decision-making.
How do I do a SWOT analysis?
Start by listing internal strengths and weaknesses, then identify external opportunities and threats. Use your findings to adjust your strategy or goals.
What is an example of a SWOT analysis?
An online brand’s strengths might include a loyal customer base, while its weaknesses could include limited shipping. Opportunities might be influencer partnerships, and threats could be large competitors.
Why is a SWOT analysis important?
It helps businesses make informed decisions, identify areas for growth, reduce risk, and plan more effectively by evaluating their current position.
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Greg Swanson
Greg Swanson is a technology and business writer with 12+ years of experience in AI and digital innovation. He specializes in AI-driven business growth, SEO, and emerging tech trends, offering actionable insights to help businesses stay ahead in a competitive online world.