What aspect do businesses evaluate when conducting a SWOT analysis?

In a SWOT analysis, businesses specifically focus on evaluating their internal strengths and weaknesses. This aspect is critical as it helps organizations identify what they excel at and where they may be lacking. By understanding their strengths, businesses can capitalize on these advantages to gain a competitive edge in the market. Meanwhile, recognizing weaknesses allows them to address potential areas for improvement, mitigating risks and enhancing overall performance.

The internal focus of strengths and weaknesses contrasts with the external factors assessed in the SWOT analysis, such as opportunities and threats. While aspects like legal compliance, global market trends, and brand loyalty may be important considerations in a broader strategic context, they do not fall under the internal evaluation that is fundamental to a SWOT analysis. Examining internal factors provides a clear snapshot of the organization’s current capabilities, making it essential for effective strategic planning and decision-making.