What is the main purpose of conducting a SWOT analysis?

The primary purpose of conducting a SWOT analysis is to evaluate a company's strengths, weaknesses, opportunities, and threats. This strategic planning tool helps organizations understand their internal and external environments by identifying the factors that could impact their success. By analyzing strengths and weaknesses, a company can leverage its competitive advantages while addressing areas for improvement. Simultaneously, assessing opportunities allows the company to exploit emerging market trends or changes that could benefit it, while recognizing threats helps prepare for challenges that may arise. This comprehensive overview enables better strategic decision-making, enhancing overall organizational effectiveness and competitiveness in the marketplace.