by Angel Rodriguez
The SWOT Analysis is a tool used for assessing the competitive position of a business. The matrix is a data capture exercise and the analysis follows completion. The acronym SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
The first variation was introduced in the 1960’s by Albert Humphrey of Stanford Research Institute, California, and has since become an essential component of strategic planning.
By analyzing internal and external factors valuable information on the current situation and future outlook is gained. The objective is to leverage the strengths while reducing the weaknesses and to capitalize on the opportunities while addressing the threats.
The SWOT Analysis is one of the first tools used for strategic planning and when combined with other marketing tools can help support a business plan, marketing plan or corporate strategy.