What does "SWOT" analysis stand for?

"SWOT" analysis stands for Strengths, Weaknesses, Opportunities, and Threats. This strategic planning tool is utilized by businesses to identify and evaluate internal and external factors that could impact their success. The "Strengths" and "Weaknesses" components focus on internal aspects of the organization, helping to ascertain what the business does well and where it may need improvement. Conversely, "Opportunities" and "Threats" pertain to external factors, allowing the business to spot potential avenues for growth as well as competitive pressures or challenges in the marketplace.

This comprehensive approach aids entrepreneurs and small business owners in developing effective strategies by giving them a clearer picture of their current situation. It often leads to stronger decision-making as one leverages strengths and opportunities while mitigating weaknesses and threats. Recognizing these elements can foster growth and sustainability in an ever-evolving business landscape.