In SWOT analysis, what internal capabilities help a company reach its objectives?

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Study for the Texas AandM University MKTG321 Exam. Prepare with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for success!

In SWOT analysis, the focus is on identifying internal and external factors that can impact an organization's performance. Internal capabilities, which encompass the resources and skills a company possesses, are classified as strengths. These strengths are crucial because they represent what the company does well, including its unique advantages, competencies, and resources that can be leveraged to meet objectives successfully.

For example, a company might have skilled employees, strong brand recognition, proprietary technology, or efficient processes that allow it to outperform competitors or adapt to market changes. By understanding and utilizing these strengths, a company can craft strategies that align with its goals and effectively address challenges in the environment.

In contrast, weaknesses refer to internal limitations or areas where the company lacks capability that can hinder its objectives. Opportunities and threats are external factors that can affect the company but are not part of its internal capabilities. Thus, identifying strengths is vital for strategic planning, helping companies to capitalize on their best attributes to drive success.