The SWOT (Strengths, Weaknesses, Opportunities, & Threats) analysis gives managers information on whether the company is strong or weak. As is implied in the name, a SWOT analysis has four parts. In the strengths part, all the things the company is good at doing and the things that make it competitive are listed. These things can be essential skills, company facilities, equipment, or resources, intangible assets, and capabilities.
The next part is the weaknesses section. This section is the opposite of the strengths section. Here all the things that the company lacks or does a bad job at are listed. The same type of items that can be strengths can also be weaknesses.
The third section is the opportunities. These are all the attractive growth opportunities available to the company. The opportunities available to a company are not the same as the opportunities available to an industry because a company may or may not have the resources available to pursue some industry opportunities. The threats section is the opposite of the opportunities section.
Managers should strive to minimize their weaknesses and mitigate threats once they identify them through a SWOT analysis. This will also allow them to determine what possibilities are available when forming strategies.