SWOT Analysis Meaning, Examples, & Stock Investing

Wooden blocks featuring S, W, O, T

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When embarking on a new business initiative—a merger, joint venture, or new product line, for example—many companies begin with a classic strategic planning tool called SWOT analysis. An acronym for strengths, weaknesses, opportunities, and threats, SWOT is designed to help companies gain a comprehensive understanding of the competitive environment, taking into account all the positives, negatives, and hypotheticals, both internally and externally.

Let’s take a look at each of its four components.

Strengths

Strengths are internal attributes that can positively contribute to a company’s growth. Typically, strengths include various tangible…

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