What is the primary purpose of a SWOT analysis in global business?

The primary purpose of a SWOT analysis in global business is to evaluate Strengths, Weaknesses, Opportunities, and Threats. This analytical framework allows businesses to conduct a thorough self-assessment and understand their current position in the market. By identifying internal strengths and weaknesses, companies can leverage their advantages and address areas that need improvement. Additionally, recognizing external opportunities and threats helps businesses strategize for future challenges and market dynamics.

A SWOT analysis is instrumental in strategic planning, as it provides a balanced view that encompasses both internal capabilities and external factors influencing the business environment. This comprehensive understanding enables companies to make informed decisions, prioritize initiatives, and develop strategies that align with their overall objectives in a competitive global landscape.