How important the application of SWOT analysis in evaluating a business opportunity?

A SWOT Analysis helps you to discover your business strengths, weaknesses, opportunities
and threats. Strengths and weaknesses can be found internally, whereas opportunities and
threats are external to your company or business. Assessing your business’ strengths and
weaknesses can help you to understand how your company is doing and how you could do
better. Looking at your opportunities can help you to find a niche in the market and work out
how to take hold of and break into that space. Whereas looking into your threats ( competing
companies, etc.) can help you to work out where you may be weak and how you may need to
change your business plan or marketing strategy to out-perform the competition. A SWOT
analysis helps evaluate where a company stands in a competitive market and what steps need
to be taken for further strategic planning, helping decision makers draw a future road-map for
the company. By leveraging its SWOT analysis, a business can create a strategic plan to meet
desired objectives and adapt to changing market conditions. Let businesses understand and
better identify internal and external factors and their positive and negative impacts on the
business. In conclusion, SWOT is an important tool to understand the health of an
organization. It allows decision makers to identify not only where an organization stands, but
also where they need to improve. This gives them the ability to be a proactive player in the
market while helping them remain competitive.