SWOT Analysis consists of analyzing a company or industry based on four criterion. These are as follows:
- Strengths- characteristics of the business or company that give it an advantage over others in the industry.
- Weaknesses -are characteristics that place the firm at a disadvantage relative to others
- Opportunities -external chances to make greater sales, profits or achieve greater market share or dominance given the environment.
- Threats -external elements in the environment that could cause problems for the company or business.
For more detailed instruction on how and why you should use SWOT Analysis please look at the following:
An Essential Guide to SWOT Analysis-This is one of the best guides I have seen!
SWOT Analysis-Strategy Tools from MindTools.com
QuickMBA SWOT Analyis
Wikipedia Article on SWOT Analyis