What is a SWOT analysis?

A SWOT analysis is a tool that companies use to determine and understand their strengths, weaknesses, opportunities and threats ("Strengths, Weaknesses, Opportunities, and Threats"). The analysis helps to look more closely at the company and its environment and to identify the factors that can influence success.

A SWOT analysis consists of four steps:

• Determining the company’s strengths, i.e. the factors that set it apart from the competition and put it in a better position to achieve its goals.
• Determining the company’s weaknesses, i.e. the factors that prevent the company from being successful.
• Determining the opportunities available to the company, such as new markets, technologies or business partnerships.
• Determining the threats the company may face, such as competition, political uncertainty or economic difficulties.

After carrying out a SWOT analysis, the company should be able to identify the most important factors that influence its success and take the necessary steps to use its strengths, minimise weaknesses, exploit opportunities and counter threats.

It is important to note that a SWOT analysis should only be one part of a more comprehensive strategic analysis and should be complemented by different types of analysis, and that the results need to be reviewed and updated regularly.