Competing in fast-moving environment change requires an ability in analyzing the implications of the changes and modifying the way to respond them. A good understanding of the internal and external conditions of your business environment will help you to decide an appropriate business strategy.
SWOT is a competitive analysis technique you can perform for each products, services, and markets in designing strategies to achieve future growth. It involves identifying Strengths and Weaknesses of your business (internal approach) and Opportunities and Threats in the market that you operate in (external approach). Let me put a clear definitions of those terms.
Strengths : internal factors that are favourable for achieving your business objective.
Weaknesses : internal factors that are unfavourable for achieving your business objective.
Opportunities : external factors that are favourable for achieving your business objective.
Threats : external factors that are unfavourable for achieving your business objective.
The definitions can be multi-interpretation and highly subjective. For the example, your business depends on a single distributor to get your products into the market quickly and efficiently, then you see it as a strength. However, it could also be a weakness as you are totally dependent on them. So, some factors can be either strength or weakness, so do opportunity or threat, depending on the business objective.
This following template will show you many kinds of factors must be considered in each terms.