Strategy · business glossary
What is SWOT analysis?
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
definition
A framework for assessing a business's internal Strengths and Weaknesses alongside external Opportunities and Threats.
SWOT analysis explained
SWOT analysis lists a business's internal Strengths and Weaknesses and external Opportunities and Threats.
example
A local gym: strength — expert trainers; weakness — small space; opportunity — corporate wellness; threat — a new chain nearby.
why it matters
It gives a quick structured view of your position to guide strategy.
common mistake
Making vague lists without evidence or follow-up actions.
Frequently asked questions
What is SWOT analysis?
A framework for assessing a business's internal Strengths and Weaknesses alongside external Opportunities and Threats. SWOT analysis lists a business's internal Strengths and Weaknesses and external Opportunities and Threats.
Why does SWOT analysis matter?
It gives a quick structured view of your position to guide strategy.
What is a common mistake with SWOT analysis?
Making vague lists without evidence or follow-up actions.
Related terms
Competitive advantage
Any factor that allows a business to outperform its competitors on a sustained basis.
Core competency
The specific capability a business does better than almost anyone else, and which its strategy should be built around.
Market share
The percentage of total sales in a category or market that one business captures.