SWOT Analysis
What is a SWOT Analysis?
A SWOT analysis is a strategic planning tool that assesses four key elements—strengths (S), weaknesses (W), opportunities (O), and threats (T)—to inform decision-making and improve competitive advantage in business and other domains.
The Basic Idea
The slogan is regurgitated in business schools across the world: Strengths, Weaknesses, Opportunities, and Threats. This acronymic strategy technique is somewhat of a cliché for a reason – it is widely used in a host of decision-making domains from corporate to political spheres.
The tool is typically used to help brainstorming and ideation around management and planning, as well as identifying competitive advantages. It is meant to provide a somewhat holistic assessment of one’s strategic position, with strengths and weaknesses often categorized as internal factors within SWOT, while opportunities and threats typically relate to external or environmental factors.
I believe that the biggest problem that humanity faces is an ego sensitivity to finding out whether one is right or wrong and identifying what one’s strengths and weaknesses are.
- Ray Dalio, founder of Bridgewater Associates
