What does a SWOT analysis identify?

A SWOT analysis specifically identifies the strengths, weaknesses, opportunities, and threats related to an organization or a project, which makes it a crucial tool for strategic planning.

Strengths and weaknesses are typically internal factors, reflecting the organization’s resources and capabilities. Strengths are areas where the organization excels or has competitive advantages, while weaknesses are areas that may hinder performance or need improvement. Opportunities and threats, on the other hand, are external factors. Opportunities refer to favorable conditions in the business environment that the organization can capitalize on to grow or improve, while threats are external challenges that could pose risks or obstacles to the organization's success.

This comprehensive understanding derived from a SWOT analysis enables organizations to craft strategies that leverage their strengths, address weaknesses, seize opportunities, and mitigate threats, thereby enhancing overall strategic decision-making and planning.