What does a SWOT analysis assess?

A SWOT analysis is a strategic planning tool used to evaluate the internal and external factors that can affect the viability of a business or project. The acronym stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths refer to the internal attributes that provide a competitive advantage, while weaknesses are internal factors that may hinder the organization's performance. Opportunities are external conditions that the business can leverage for growth, and threats are external challenges that could pose risks to success. By assessing these four dimensions, businesses can develop strategies that capitalize on their strengths and opportunities while addressing their weaknesses and planning for threats, thereby fostering informed decision-making and strategic direction.

The other choices focus on specific aspects of business metrics or performance indicators but do not encompass the broad, comprehensive evaluation that a SWOT analysis provides. Financial performance, market share percentage, and operational efficiency are all important measures but don't capture the holistic view of both internal and external factors that affect a business's overall strategy.