It is used to determine what a business can do and, what it should steer clear of, or possibly put on hold for later. It also gives the business information as to what opportunities it can take advantage of, and the possible dangers, hostilities that it may be exposed to. All of these are however subject to the resources available to the business as at the time of consideration.

SWOT analysis is one of the tools that must be given priority in a business plan or feasibility study. It is not some kind of guess work, or what is wished for. SWOTS are analyzed using available and accurate facts of a business current standing. Before a business goes into full operations, its SWOTs must have been analyzed. This will give its promoters an idea of what they are up against, what adjustments to make, what relationships/partnerships to leverage, and even the strategy to adopt. There should also be an ongoing assessment of SWOTs as the business progresses, to help in making informed decisions on various aspects of the business.

Strengths of a business could be its people, net worth, goodwill, proprietary assets, organizational culture, brand name or reputation e.t.c, whatever it is, it should be strong enough to handle the peculiarities of existing or impending threats, whether they are posed by the business environment, or inherent in the social, political or cultural risks.

In every business environment, opportunities present themselves every now and then. It takes the strengths of a business to identify, and discern the viability of these opportunities, and whether or not to pursue them. Taking note of opportunities and maximizing them, could give a head start over the competition, possibly eliminating an erstwhile weakness.

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