SWOT analysis is a template used by companies/designers to evaluate their competitive position in the market and to assist with their strategy plan. It assesses internal and external factors whilst looking at current and future potential.
SWOT stands for:
Strengths - this describes what makes your product or business excel and stand out from competitors. Elements to consider would be brand, customer base, unique points etc
Weaknesses - this describes what prevents your product or business performing at its optimum level. Areas that could use improvement to keep up with competitors such as bad branding, higher than average turnover, debts, poor supply or lack of capital.
Opportunities - this refers to external factors that give your product or business a competitive advantage.
Threats - this refers to the factors that have the potential to damage or harm your business or product.
A SWOT analysis is used for assessing the performance, competition, risk and potential of a business or product by collecting internal and external data to guide strategies that are more likely to be successful. Identifying core strengths, weaknesses, opportunities and threats leads to fact-based analysis with a fresh perspective and new ideas.