The-definition.com

Definition

SWOT analysis

SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environment opportunities and Threats facing that firm. SWOT analysis is a historically popular technique through which managers create a quick overview of a company’s situation. It is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources and its external situation. A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has sound, insightful implications for the design of a successful strategy.


SWOT analysis is the SWOT is an acronym for strengths, weaknesses, opportunities, and threats. By systematically evaluating all four of these factors, a firm can then develop the best strategies for gaining a competitive advantage.

Share it:  Cite

More from this Section

  • Trust
    Trust is defined as the belief in the integrity, character, and ability of a leader. Followers ...
  • Opportunities
    An opportunity is a major favorable situation in a firms environment. Key trends are one ...
  • Enterprise zones
    ...
  • Formal communication channel
    Formal communication channel is the messages that flow within the chain of command defined ...
  • Isolating mechanisms
    Characteristics that make resources difficult to imitate. In the RBV context these are ...