The SWOT analysis (acronym for Strengths, Weaknesses, Opportunities and Threats) is a useful method to understand the current positioning and corporate strategy. Each business-relevant factor is categorized according to its origin (internal or external) and its effect on the company (positive or negative) and can then be classified as Strengths (internal + positive), Weaknesses (internal + negative), Opportunities (external + positive) or Threats (external + negative).
The SWOT analysis has its origin in the Harvard Business School. In the 1960s, Henry Mintzberg tried to standardize the process of strategy development with your help. The basic idea is to examine the business environment for opportunities, risks and threats in order to become aware of your own strengths and weaknesses. Strengths should be used consistently to realize opportunities. Weaknesses should be consistently reduced to minimize risks.