A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

Here's a breakdown of each component:

• Strengths: Internal attributes of the organization that are helpful to achieving the objective.
• Weaknesses: Internal attributes of the organization that are harmful to achieving the objective.
• Opportunities: External conditions that are helpful to achieving the objective.
• Threats: External conditions that are harmful to achieving the objective.

SWOT analysis is often presented in a 2x2 matrix:

Using SWOT analysis can help to:

• Identify and leverage strengths.
• Minimize weaknesses.
• Capitalize on opportunities.
• Mitigate threats.

MindTools offers a detailed explanation of SWOT analysis with examples.