SWOT Analysis is a tool which is used by business to assess themselves. Not only businesses SWOT can also be used to look into yourself. It stands for strength, weakness, opportunity and threat. The purpose of SWOT is to help you develop a strong business strategy by making sure you have taken into consideration all of the strengths and weaknesses of the company, as well as the opportunities and threats it faces in the market.
It is useful for both existing as well as new businesses. Existing ones can use it to assess a changing environment and respond proactively in a better way. While newer ones can use it as a part of their planning process. There is no hard and fast rule that which plan can work for your business. Therefore, it is always important to know and keep thinking about your new business in terms SWOT will put you on the right track right away.
Strengths and weaknesses are internal to the company. For example: reputation, patents, location etc. which depends upon business and not on other factors. These are the factors which can be changed and depends totally upon the business. Opportunities and threats are external. These are the factors which are there in your market and can influence your business. They can be suppliers, competitors, prices etc. These are the factors not under the control of business.
The following four square details how to do a SWOT analysis