What is the purpose of a SWOT analysis?

The purpose of a SWOT analysis is to evaluate the Strengths, Weaknesses, Opportunities, and Threats of an organization. This analytical tool is essential for strategic planning and decision-making, allowing businesses to systematically assess internal and external factors that could impact their success.

By identifying strengths, organizations can leverage these advantages to compete effectively in the market. Understanding weaknesses helps companies recognize areas that need improvement to enhance performance. Opportunities provide insights into potential areas for growth or expansion, while the assessment of threats enables organizations to anticipate challenges and develop strategies to mitigate risks.

This holistic view allows decision-makers to align their resources and efforts strategically, fostering a deeper understanding of both their operational position and market environment. Other options may relate to specific aspects of business analysis or evaluation but do not encompass the comprehensive framework that a SWOT analysis provides.