What does SWOT analysis stand for?

SWOT analysis is a strategic planning tool that helps organizations identify and analyze their Strengths, Weaknesses, Opportunities, and Threats.

Strengths refer to internal attributes and resources that support a successful outcome. For instance, a skilled workforce or strong brand reputation could be considered strengths. Weaknesses, on the other hand, are internal factors that could hinder performance, such as lack of expertise or limited resources.

Opportunities involve external factors that the organization could exploit for growth or advantage, such as emerging markets or technological advancements. Threats are external challenges or risks that could jeopardize the business, such as competitive pressures or changing regulations.

Understanding these four components allows leaders and managers to develop strategies that leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats. This comprehensive view is what makes the first option the accurate representation of SWOT analysis.