What is the function of a SWOT analysis?

The Swot Analysis is a decision-making tool analysing both the external and internal advantages and disadvantages of an investment. It allows the investors to take account of the external environment, summarise what the investment can offer and analyse the current and future situation. Swot analysis is a simple and quick method of analysing the position and situation of an investment, although it is sometimes argued to be too simplistic and not requiring detailed information and analysis. It is also disposed of a rather short life since the market is under constant change.