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SWOT analysis: strengths, weaknesses, opportunities and threats

19d ago | By: FDS

The SWOT analysis is a tried and tested tool in the world of management and corporate strategy. It provides a structured method to assess a company's internal strengths and weaknesses as well as external opportunities and threats. In this article, we will explain the basics of SWOT analysis and how it helps companies make informed decisions.

What is a SWOT analysis?

The abbreviation "SWOT" stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis is a systematic assessment in which these four factors are analysed in order to obtain a comprehensive picture of a company's current situation.

Strengths (strengths):

Strengths are internal characteristics and resources that give a company a competitive advantage. These can be, for example, specialised expertise, qualified personnel, efficient processes or strong brands. Identifying strengths helps a company to utilise its core competencies.

Weaknesses (weaknesses):

Weaknesses are internal factors that can affect a company's performance. These include, for example, insufficient resources, inefficient processes, deficiencies in product quality or problems in the corporate culture. Identifying weaknesses enables a company to work on removing these obstacles.


Opportunities are external factors and trends that a company can utilise to grow and be successful. These can be changing market conditions, new technologies, untapped target markets or partnership opportunities. Identifying opportunities helps a company to adapt its strategy and tap into new sources of growth.

Risks (threats):

Threats are external factors and trends that can affect a company's performance. These include, for example, increasing competition, changing customer preferences, regulatory changes or economic uncertainties. Identifying risks enables a company to take countermeasures at an early stage and prepare for potential challenges.

How is a SWOT analysis carried out?

Conducting a SWOT analysis requires a thorough examination of the internal and external aspects of the company. This can be achieved through internal workshops, interviews with employees and customers, competitor analyses and market studies. The results are typically presented in a SWOT matrix or table that clearly shows the company's strengths, weaknesses, opportunities and threats.

Benefits of a SWOT analysis:

A well-conducted SWOT analysis enables a company to understand its position in the market, set strategic priorities and make decisions on a sound basis. It serves as a starting point for developing business strategies that maximise strengths, eliminate weaknesses, exploit opportunities and mitigate risks.

All in all, the SWOT analysis is an indispensable tool for companies of any size and in any industry. It provides a clear structure to improve strategic alignment and ensure long-term competitiveness.

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