SWOT Analysis

A tool to determine the internal and external conditions of the business. 

Strengths and weaknesses are INTERNAL factors; meaning the business has a degree of control over their impact. 

Businesses should exploit their competitive advantages (strengths) and position themselves to avoid shortcomings (weaknesses—these will be targeted by competitors). 

Opportunities and threats are EXTERNAL factors; meaning that the business has little control over their impact. The business environment is under continual flux; creating opportunities for the perceptive and threats for the unprepared. These factors can either reduce business performance or provide potential for future business growth and profitability.