What is SWOT analysis?

SWOT analysis is a strategic planning tool that helps evaluate internal and external factors affecting a project or company. The name comes from the first letters of the English words:

• Strengths — internal advantages, resources, and competencies.
• Weaknesses — internal disadvantages and limitations.
• Opportunities — external favorable factors that can be utilized.
• Threats — external risks and competitors that may negatively impact.

For a product manager, SWOT analysis helps understand how the product is positioned in the market, what competitive advantages and risks exist, and also identify directions for development and improvement.

Example: if a product has a strong development team (Strength), but a weak marketing strategy (Weakness), while there is growing demand for similar solutions in the market (Opportunity), and there are aggressive competitors (Threat), then the strategy could focus on strengthening marketing and differentiating from competitors.