Which factors are considered Internal in a SWOT analysis?

In a SWOT analysis, internal factors refer specifically to aspects that are within the organization’s control and influence. Strengths and weaknesses fall under this category. Strengths are the positive attributes and resources that a business possesses, such as skilled personnel, strong brand recognition, or proprietary technology. Conversely, weaknesses are the areas where the business may lack resources or capabilities, such as underdeveloped product lines or limited market reach.

Understanding these internal factors is crucial for a business as it helps in strategizing effectively. By leveraging strengths, a company can capitalize on its advantages and differentiate itself within the market. Addressing weaknesses allows the business to mitigate risks and improve its overall performance.

On the other hand, external factors such as opportunities and threats assess the market environment, including competition and market trends. Market trends and economic factors illustrate external conditions that can impact a business but are not within its control. Sales data and customer preferences may provide insights into a company's performance and market demand, but they do not directly reflect internal competencies or limitations.

Recognizing the internal nature of strengths and weaknesses distinguishes them from the external observations captured in the other factors in a SWOT analysis.