A SWOT analysis is a tool for planning that an organization can use to define the strengths, vulnerabilities, opportunities and risks of a strategic endeavor. For these four variables, the word SWOT is an acronym. In a SWOT analysis, the strengths and limitations of a project or product) are internal variables. Strengths may involve the domain knowledge or intellectual property of the organization. Weaknesses can involve a lack of expertise or a budget shortage. On the other hand, opportunities and challenges are external and relate to competition, the economy, or evolving patterns that may have an impact on the business.