Define: SWOT Analysis

UK Accounting Glossary

Definition: SWOT Analysis

Quick Summary

A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business strategy, whether you’re building a startup or guiding an existing company.

What is the dictionary definition of SWOT Analysis?

Dictionary Definition

SWOT provides an analysis matrix for identifying the strengths, weaknesses, opportunities and threats to an organisation, and acts as a form of appraisal as to it’s current position at a particular time and as to it’s future potential.

Full Definition

SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are internal to your company—things that you have some control over and can change.

Opportunities and threats are external—things that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them. Examples include competitors, prices of raw materials, and customer shopping trends.