What does a SWOT analysis focus on evaluating?

A SWOT analysis is a strategic planning tool that focuses specifically on assessing the internal and external factors that can influence the success of a business or project. It systematically evaluates four key areas: strengths, weaknesses, opportunities, and threats.

Strengths refer to the internal attributes and resources that a company can leverage to gain a competitive advantage. Weaknesses are the internal limitations or challenges that harm performance or growth. Opportunities are external factors that could be advantageous if pursued, while threats are external risks that could hinder success.

By analyzing these four dimensions, organizations can develop strategies to capitalize on their strengths and opportunities while addressing weaknesses and mitigating threats. This comprehensive framework supports strategic decision-making and helps in planning future initiatives effectively.

The other options, while they are aspects of strategic planning and analysis, do not encompass the full range of elements that SWOT analysis is designed to evaluate. Instead, they focus on specific facets such as market expansion potential, competitor performance, or financial metrics, which are not the central focus of a SWOT analysis.