In conducting a SWOT analysis for a company, how can identifying weaknesses during an external analysis impact the business strategy?

When a SWOT analysis shows weaknesses that come up from looking at the outside world—such as gaps in the supply chain, poor customer perception, or a lack of skilled talent—those weaknesses become targets for improvement. Recognizing them early lets a company decide where to allocate resources, whether to hire new skills, invest in better technology, or change marketing tactics. This proactive move turns a potential threat into an opportunity to strengthen the firm’s competitive position. For example, if a market study reveals that competitors offer faster delivery, a company might invest in logistics upgrades, turning a weakness into a differentiator. Ultimately, spotting these weaknesses during external analysis shapes a strategy that focuses on closing gaps and gaining a stronger foothold in the market.