What is the purpose of a SWOT analysis?

The purpose of a SWOT analysis is to assess an organization's Strengths, Weaknesses, Opportunities, and Threats. This strategic planning tool is essential for understanding both internal and external factors that can impact an organization’s performance and decision-making.

By identifying strengths, an organization can leverage its advantages in the market. Recognizing weaknesses enables it to address and mitigate potential vulnerabilities. Opportunities are external chances for growth or improvement that can be identified through market trends or changes, while threats refer to external challenges that could hinder success.

This holistic view helps organizations design strategies that capitalize on their strengths and opportunities while also recognizing and planning for weaknesses and threats. This approach leads to informed decision-making and can drive the organization toward achieving its goals effectively.

Other options do not encompass the comprehensive analytical aspect of SWOT. While creating a marketing budget, outlining a brand's history, or evaluating competitor strategies are important marketing activities, they do not provide the systematic assessment of internal and external factors that a SWOT analysis delivers.