What Is a SWOT Report?

SWOT stands for "Strengths Weaknesses Opportunities Threats." SWOT is a technique for developing a strategic plan for a business. A SWOT report contains information on the strengths and weaknesses of the business, and the opportunities and threats in the business environment.

Strengths

• The strengths of a business are properties that are internal to the firm. Strengths are anything that the the firm has a competitive advantage in. These can include marketing expertise, specialist technical knowledge, patents or intellectual property. A SWOT report should identify these strengths and suggest ways of extending and protecting them.

Weaknesses

• The weaknesses of a business are properties that are internal to the firm. Weaknesses are anything that leads to a lack in the ability of the firm to survive and grow. A SWOT report should identify weaknesses and suggest means of eliminating them.

Opportunities

• Opportunities are things that exist in the environment external to the firm. An opportunity is any external environmental property that the firm can exploit for profit and growth. An example of an opportunity might be the Internet or government legislation.

Threats

• Threats are things that exist in the business environment external to the firm. They include anything that threatens the ability of the firm to make a profit and grow. Examples of threats include the entry of a larger competitor firm into the market.