A SWOT analysis can be used to conduct an internal review of how a business is performing and how well it is positioned to take advantage of present/future opportunities and tackle any present/future challenges. It involves assessing the Strengths and Weaknesses of a business (internal factors), alongside the Opportunities from which it could potentially benefit and Threats that it could face (external factors relating to the market/industry in which the business operates).

Strengths

Which positive attributes does the company possess? Does it have unique resources that contribute towards its success? Examples include: unique/popular products, unrivalled research capabilities, particularly talented employees, strong customer loyalty and strong branding. Does the company have a competitive advantage?

Weaknesses

Which negative attributes does the company exhibit? Is it struggling financially? Are its products outdated? Does it lack strong brand recognition? Has the company tried to deal with its weaknesses?

Opportunities

Which opportunities are currently available for the company to exploit? Is its market growing? Is consumer behaviour changing in a way that could benefit the company? Are other opportunities likely to arise in the future? 

Threats

Which external factors could negatively impact upon the company? Is its market shrinking? Is the market becoming saturated? Is the government regulating the market more heavily? Are consumers spending less (e.g. is there a recession)? Are these factors affecting all firms in the industry, or the company in particular?