Using a SWOT Chart identifies internal strengths and weaknesses based on your own resources and capabilities and external opportunities and threats based on the environment. It’s useful because it matches resources and capabilities to the competitive environment in which it operates. Therefore it is a strategic tool. It doesn’t stand still, it is always changing and your business should change with it.
A Strong business that stands the test of time is one that has determined it’s strategy and priorities to address threats and opportunities. Business planning can be defined as matching strengths with opportunities and warding off threats and seeking to overcome weaknesses.