What is a SWOT analysis?

A SWOT analysis is a strategic planning tool used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats related to a business, project, or specific situation.

By examining these four elements, an organisation can gain insight into both its internal and external environment. This analysis can be used for decision-making, strategic planning, resource allocation, and competitive analysis.

Benefits of a SWOT Analysis:

1. Comprehensive Overview: It provides a structured and holistic view of both internal factors (strengths and weaknesses) and external factors (opportunities and threats).
2. Informed Decision Making: By understanding where a business excels and where it may be vulnerable, leaders can make informed decisions.
3. Uncover Opportunities: By analysing the external environment, businesses can identify new opportunities they might have previously overlooked.
4. Mitigate Threats: Recognising potential threats in advance can allow a company to develop strategies to mitigate or avoid them.
5. Resource Allocation: Understanding the company's strengths can help in directing resources to areas where they will have the most impact.
6. Strategic Planning: It aids in setting strategic goals and defining actionable plans to achieve those goals.
7. Encourages Team Discussion: Conducting a SWOT analysis can promote open and constructive discussions within a team, fostering a collaborative approach to challenges and opportunities.