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SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a strategic tool used to identify and analyze an organization’s Strengths, Weaknesses, Opportunities, and Threats. This methodology allows companies or individuals to obtain a clear perspective of their internal capabilities and competitive environment, which is essential for decision-making and strategic planning.

From an internal perspective:

  • Strengths refer to the positive attributes, tangible and intangible, that are controllable within the organization and that can be used to achieve its objectives.
  • On the other hand, weaknesses represent limitations or deficiencies that may hinder the achievement of desired objectives. Both dimensions require an introspective and honest analysis of the organization’s resources, capabilities, and competencies.

From an external perspective:

  • Opportunities refer to elements of the environment that the organization could exploit for its benefit.
  • Threats are those external factors that could endanger the stability or growth of the organization.

Identifying these variables allows companies to adapt to environmental changes, take advantage of emerging market niches, and mitigate potential risks. In summary, SWOT analysis provides a comprehensive framework to evaluate the strategic position of an entity and develop appropriate strategies to strengthen its place in the market.