SWOT (strengths, weaknesses, opportunities, and threats) is a type of analysis that lets companies take an assessment of their position within an industry. It is a framework that helps companies look both inward and outward.
SWOT is divided into two main areas — internal and external. The internal analysis includes strengths and opportunities, and external analysis includes weaknesses and threats. Companies should try to take advantage of strengths and opportunities while minimizing weaknesses and threats. SWOT is often performed by a group of people rather than a single person. It’s also important that the group feels they can speak freely and without consequences.
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