A SWOT analysis is a framework used to evaluate a company's competitive position and develop a strategic business plan. The term SWOT is an acronym. Every SWOT analysis will include the following four categories: (1) Strengths, (2) Weaknesses, (3) Opportunities, and (4) Threats. A SWOT analysis will evaluate the following: (1) Strengths: the characteristics of the business that give it an advantage over its competition, (2) Weaknesses: The characteristics that place the business at a competitive disadvantage, (3) Opportunities: Things the business can realistically exploit to its advantage, and (4) Threats: Things that can harm the business. A SWOT analysis is often called a situational assessment or a situational analysis.

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