A small retail company is facing declining sales and is unsure about the reasons behind it. They decide to conduct a SWOT analysis to evaluate their current position. Which of the following best describes how they should utilize the SWOT analysis to improve their business strategy?

The company should first gather data on what it does well, what it struggles with, the market chances it can exploit, and the risks it faces, and write those down in the four SWOT categories. Then it should match its strengths to the opportunities it sees and plan actions that use those strengths to win new customers or launch new products. Next it should look at the weaknesses that block those opportunities and create concrete improvement plans—like training staff or fixing a weak supply chain—to remove those roadblocks. Finally, it should identify the threats it faces, such as new competitors or changing regulations, and devise contingency plans or defensive moves. For example, if a SWOT shows a strong brand but weak online presence, the company could invest in e‑commerce to turn that weakness into a growth opportunity.