A SWOT analysis is a method of analysing a business’ competitive position and is composed of four main components:

1. Strengths (internal)

• These entail what a business does well and relates to the internal aspect of a firm:

• A firm's expertise in certain fields, such as marketing, operations and more

• Ability to produce innovative goods and services

• Quality processes and procedures

• Other unique selling points (USPs)

2. Weaknesses (internal)

• These refer to what a business does poorly and revolves around the internal aspect of a business:

• Lack of expertise in certain fields

• Undifferentiated goods and services, when compared with competitors or past performance

• Weak brand image

3. Opportunities (external)

• These refer to external initiatives that can place a business in a stronger, more competitive position.

• The market for a particular product may be growing

• New technology in the space of that market

• Increased investment

• Competitors going out of business

4. Threats (external)

• These are any external factors that can be harmful for a business:

• Social perception and brand image, which is easily influenced through social media

• Natural disasters and unexpected shocks, like pandemics

• Legislation changes

• Increased competition