Threat refers to the unfavorable factors in the external environment, such as the threat of competitors and the decline of market demand. Opportunity is a favorable factor of external environment for enterprises, such as the emergence of new markets and technological innovation. By analyzing these threats and opportunities, enterprises can better formulate strategies and countermeasures to achieve sustainable development.

Opportunity is an opportunity that may be brought by analyzing market, technology and policy, which helps enterprises to grasp market trends and formulate appropriate strategies. Threat is to analyze the possible threats caused by market competition, policy changes and economic situation, and help enterprises to take countermeasures in advance to reduce risks. Advantage is to analyze the advantages of enterprises in products, brands and channels, which is helpful for enterprises to play their own advantages and improve their competitiveness.

Characteristics of SWOT analysis method:

In a sense, SWOT analysis belongs to the internal analysis of enterprises, that is, according to the conditions of enterprises themselves, analysis is carried out in a certain period of time. SWOT analysis has its foundation. The competitive theory put forward by Michael Porter, a famous competitive strategy expert, thoroughly analyzes and explains the "possibility" of an enterprise from the perspective of industrial structure, while competency-based management scientists use the value chain to deconstruct the value creation process of an enterprise and pay attention to the analysis of the company's resources and capabilities.

SWOT analysis is to combine the internal analysis of the company (that is, the research orientation of management experts in the mid-1980s) with the external analysis of the competitive environment of the industry represented by the school of competence, and form its own structured balanced system analysis system. Compared with other analysis methods, SWOT analysis has obvious structural and systematic characteristics from the beginning.