SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. This is really an important tool to analyze a business, product, place, and person, etc. For an organization, this analysis helps to make a conscious, deliberate, and systematic approach, to identify internal factors i.e. Strength and Opportunities of its own, and external factors i.e. opportunities, and threats that may arise.
Strengths- These are your positive factors, which give advantages over your competitors.
Weakness- These are your negative factors, which you should think upon to improve.
Opportunities- These are the possibilities may come due to some external factors like technology, Government Policy, etc.
Threats- These are the external factors, which can create trouble in your business
Utilizing its strength completely, minimizing or eliminating weakness, taking advantage of opportunities, a company can avoid possible threats and gain sustainable competitive advantages from its competitors in the near future.