Which analysis helps managers evaluate their competition and their own company's strengths and weaknesses?

The SWOT analysis is specifically designed to help managers assess both their own company’s strengths and weaknesses as well as the opportunities and threats present in the competitive landscape. By identifying internal strengths, such as unique resources or competitive advantages, and weaknesses, such as areas where the company may be lacking, managers can develop strategies that capitalize on their capabilities while addressing shortcomings.

Simultaneously, SWOT also prompts the evaluation of external opportunities and threats in the market environment, facilitating a comprehensive understanding of how the company stands relative to its competitors. This dual focus on internal and external factors allows for strategic planning that aligns resources with market demands efficiently, making it a fundamental tool for evaluating competitive positioning and guiding decision-making processes.