What is the purpose of a SWOT analysis?

The purpose of a SWOT analysis is to identify Strengths, Weaknesses, Opportunities, and Threats, which allows organizations to understand their current position in both internal and external environments. By analyzing strengths, the organization can leverage its advantages, while recognizing weaknesses helps in addressing areas that require improvement. Opportunities provide insight into potential growth and advancements the organization can pursue, whereas threats highlight external challenges that need to be monitored or counteracted.

This holistic view enables organizations to create strategic plans by capitalizing on strengths and opportunities while addressing weaknesses and mitigating threats. By conducting a SWOT analysis, teams can establish a clearer roadmap for decision-making and strategic planning, ensuring alignment with organizational goals and fostering effective resource allocation.