SWOT is an analysis model used to develop company strategy. It stands for: “Strengths - the company's strong points, Weaknesses - weak points, Opportunities - future possibilities, and Threats - future perils.” It is critical to establish these four areas and manage them right.

In the first phase of the analysis, these four areas are discussed in detail. For instance, Apple’s strong points are its “brand image” and “loyal customer base.” Meanwhile, "Android software gaining strength in the market” poses a threat to Apple. For Starbucks, “low revenue per customer” is a weakness, whereas “rising coffee consumption in Asian countries" is an opportunity. A similar analysis was made for Turkish Airlines in 2009. It was determined that “growing local market and low employee costs” are its strengths, whereas “aggressive fleet investment costs” are its weakness.

In the second phase, look for answers to these types of questions:

• How can we utilize our strengths in a way to take advantage of opportunities?

• What strategies can we develop to turn our weaknesses into strengths?

• How can we turn threats into opportunities by utilizing our strengths?

A SWOT analysis is not always easy. Opportunities and dangers lie ahead but it is hard to notice and measure them. Likewise, an opportunity may quickly turn into a threat with changes in technology, population, or state policy. The growing smartphone market was an opportunity for Blackberry, until it turned into a threat as Apple entered into the market.

The greatest benefit of a SWOT analysis is its ability to offer a whole picture of a company's internal strengths and weaknesses, external opportunities and threats, and positive and negative circumstances. Despite being based on subjective judgments, "asking the right questions" may be considered as crucial as the "outcomes."

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