How can a company effectively use its SWOT analysis to formulate a competitive business strategy?

A SWOT analysis gives a company a clear map of what it does well, what it needs to improve, what chances exist, and what dangers loom. By first listing the strongest points, a firm can decide where to double down—such as using a well‑known brand to launch a new product line. Next, it should match its weaknesses with the threats it faces, turning those gaps into plans that protect against competitors or market shifts. Then it can pair its strengths with external opportunities, creating a strategy that exploits new markets or technologies. For instance, a small coffee shop that notices its loyal local customer base (strength) and a growing demand for plant‑based drinks (opportunity) might launch a new vegan menu, while also addressing its limited seating (weakness) and rising rent (threat) by offering curbside pickup.