SWOT analysis (Strength-Weakness-Opportunity-Threat) is actually a technique that can identify strengths and weaknesses and there could be examined opportunities and threats of a project, or of an action, or of an individual.
Generally, there are two ways that SWOT analysis can be used: for business or for personal reasons. For personal reason, SWOT analysis can be used to monitor a person's career, noting the skills and the problems the person has. In the professional context, SWOT analysis can be used to measure the profitability of a business or project.
If SWOT analysis is made for a company,the first two acronyms (S.W.) concern the company and reflects it's position, and the last two (O.T.) concern the environment and reflect it's impact on activity of the company analyzed.
Strengths of a company are characteristics or distinguishing skills that it possesses at a higher level, compared with other companies, especially competitors, which assures it a certain advantage.
The weaknesses of the company are its characteristics that determine a performance level below of those of competitors.
Opportunities are positive external environmental factors for the company, ie chances offered by environment, to the firm, to establish a new strategy or to reconsider the existing strategy, in order to exploit arising profitable opportunities.
Threats are negative external environmental factors for the firm, ie situations or events which may affect adversely, in significant measure, the firm capacity to fully achieve the set targets, the result being the drop of its financial and economical performances.
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