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