What is the main purpose of conducting a SWOT analysis?

The main purpose of conducting a SWOT analysis is to assess a company's strengths, weaknesses, opportunities, and threats. This strategic planning tool provides a comprehensive framework for analyzing internal and external factors that can impact an organization's performance.

By identifying strengths, a company can leverage these advantages to capitalize on opportunities and mitigate threats. Conversely, recognizing weaknesses allows a company to develop strategies to overcome challenges and enhance its market position. This holistic evaluation is crucial for effective decision-making, strategic planning, and for positioning the company within its competitive landscape.

In contrast to the other options, a SWOT analysis specifically focuses on the qualitative aspects of an organization rather than quantitative metrics like financial performance or market trends. It does not aim to predict stock market fluctuations, as that would require a different analytical approach centered on investment and financial forecasting rather than internal and external assessments.