Incomplete. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It is the culmination of much internal analysis and external research. Thinking about the outcome, one can define the SWOT analysis as the extent to which a company's current strategy, strengths and weaknesses are relevant to the business environment in which the company operates. The strengths and weaknesses are internal aspects and Kotler (1988) suggests that these should cover the four areas of marketing, financial, production and organisation. Opportunities and threats take into account major environmental issues such as the economic situation, social changes such as an aging population and technological developments, including the Internet. An example SWOT analysis for a cosmetics manufacturer might include: Strengths Strong and experienced marketing team High brand recognition Established consumer test panel Weaknesses Prices perceived as too high Costs out of control due to increases by raw material suppliers Brand identity inconsistentOpportunitiesGrowth of the Internet leading to an increase in the number of consumers willing to buy onlineNew emerging teen marketThreatsNew “affordable luxury” entrants into the market threaten to take share from premium brandsMajor competitor intends to vertically integrate and sell direct to consumerIncreasing popularity of nail spas leading to a decline in demand for nail productsA SWOT can be run for companies, departments and divisions, as well as for individuals. Whatever the focus, the results will be very individual, even for competing companies in the same industry. One company might see the new technology as an opportunity for e-commerce to increase the number of consumers wanting to buy online, while another market player, without any in-house Internet experience, might see it as a threat. The importance of SWOT analysis lies in its ability to help clarify and summarize the key issues and opportunities facing a company. The value lies in considering the implications of things identified and can therefore play a key role in helping a company set goals and develop new strategies. The ideal outcome would be to maximize strengths and minimize weaknesses in order to exploit external opportunities and overcome threats. For example, the environment may represent an opportunity for a new product, but if the company does not have the capacity to produce that product it may decide to invest in new plant and machinery or simply stay away. The biggest advantages of SWOT analysis are that it is simple and only takes time.