What is the name of the analysis used to compare strengths, weaknesses, opportunities, and threats in order to help formulate strategy?

The analysis used to compare strengths, weaknesses, opportunities, and threats in order to help formulate strategy is known as SWOT Analysis. This framework provides a structured way to assess both internal factors (strengths and weaknesses) and external factors (opportunities and threats) that can impact an organization’s decision-making and strategic planning. Using this analysis, organizations can identify what they do well, where they can improve, the external opportunities they can exploit, and the external threats they need to mitigate. This comprehensive view enables businesses to align their strategies with their unique capabilities and the external market environment, fostering more informed decision-making processes.

While PEST Analysis focuses on the political, economic, social, and technological factors affecting the business environment, and Market Segmentation involves dividing a market into distinct groups of buyers, these methods do not incorporate the internal assessment of strengths and weaknesses alongside external opportunities and threats like SWOT does. Risk Assessment, on the other hand, is primarily concerned with identifying and analyzing potential issues that could threaten the success of a project or business, meaning it does not encompass the broader strategic evaluation that SWOT Analysis provides.