SWOT Analysis is a strategic planning tool used to identify an organization’s internal Strengths and Weaknesses, as well as external Opportunities and Threats. It helps businesses understand their competitive position and develop strategies for growth and improvement.

HubSpot contributor Caroline Forsey has published an article explaining SWOT Analysis.

She says, “You may have noticed by now that SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The framework seems simple enough that you’d be tempted to forgo using it at all, relying instead on your intuition to take these things into account.

As a small business owner, I was tempted to forgo using it, thinking I knew everything about my business anyway. I was wrong. Doing a SWOT analysis is important. Here’s why.

1. SWOT gives you the chance to worry and to dream.

A SWOT analysis is an important step in your strategic process because it gives you the opportunity to explore both the potential risks and the exciting possibilities that lie ahead. You’re giving yourself the space to dream, evaluate, and worry before taking action.

Your insights then turn into assets as you create the roadmap for your initiative.”

SWOT Analysis: How To Do One [With Template & Examples]

HubSpot
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