SWOT analysis is a powerful tool for

gauging whether a company has an adequate number of valuable resources, up$-$to$-$date competitive capabilities, and cost$-$efficient value chain activities.

evaluating whether a company's strategy is working well, how profitable it is$,$ and whether it is operating with a competitive advantage or a disadvantage.

determining whether a company's strategy is powerful enough to capture the available market opportunities and whether it has dynamic and competitively valuable capabilities.

sizing up a company's competitively important strengths and weaknesses, its market opportunities, and the external threats to its future well$-$being.

identifying precisely what factors are causing the company to either make money or lose money.