Run a SWOT analysis
A SWOT analysis is a structured method for evaluating both the internal situation of a business and the external factors that affect it. It is most useful in the early stages of product planning, before major investments are made, and later when revisiting strategy in a changing market. Teams use SWOT to understand where they stand compared to competitors, identify areas for growth, and anticipate risks that could slow progress.
The framework is divided into 4 categories:
- Strengths are internal advantages, such as a recognizable brand, a skilled team, or an especially loyal user base.
- Weaknesses are internal limitations that reduce performance, like poor visibility in search results, limited features, or slow customer support.
- Opportunities come from outside the company and may include emerging technologies, growing market segments, or shifts in consumer behavior that create demand.
- Threats are external risks, such as aggressive new competitors, economic downturns, or changing regulations.
By collecting information in each quadrant, you create a balanced view of the product’s position. Strengths and weaknesses show what you can control directly, while opportunities and threats highlight factors in the environment that you must respond to. Together, they give you a clear picture of where to focus resources and how to stand out in a competitive market.[1]
