What is primarily assessed in a SWOT analysis regarding a company's internal situation?

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A SWOT analysis focuses on evaluating a company's internal situation by identifying its strengths and weaknesses. This internal assessment is essential as it provides insight into what the organization does well, such as unique resources, capabilities, or core competencies, which can be leveraged for competitive advantage. Conversely, it also highlights weaknesses, which are areas that may need improvement or pose challenges to the organization's effectiveness and market position.

Recognizing strengths allows a company to build upon its competitive edges, while an awareness of weaknesses enables it to address vulnerabilities and reduce risks. This internal perspective is crucial for informing strategy, as it helps the company capitalize on its strengths while mitigating potential downsides related to its weaknesses.

While market opportunities, customer satisfaction, and competitive threats are all relevant considerations in strategic planning, they fall under the external factors analyzed in the broader SWOT framework. Therefore, the correct identification of strengths and weaknesses is the primary focus when assessing a company's internal situation.

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