What is a SWOT analysis used for?

A SWOT analysis is a strategic tool that provides a structured framework for assessing a company's internal and external environments. It specifically focuses on identifying strengths and weaknesses (internal factors) and opportunities and threats (external factors) related to business objectives. By analyzing these four components, organizations can gain insights into their current situation, leverage their strengths, improve upon their weaknesses, capitalize on opportunities, and mitigate potential threats.

This method helps businesses make informed decisions and craft strategies that align with their capabilities and market conditions. The other options, such as identifying market trends, evaluating customer satisfaction, and measuring financial performance, may be part of a broader strategic analysis but do not encapsulate the comprehensive nature of a SWOT analysis, which is centered solely around strengths, weaknesses, opportunities, and threats.