SWOT analysis is nice tool for strategic planning in competitive analysis. SWOT provides strength, weakness, opportunity and threats for a company.
What is swot?
S: Strengths of company or person which can be utilized to minimize threats and tap the opportunities.
W: Weakness of company or person which can be identified and reduced so that company can convert it to strengths.
Both strength and weakness can be found internal to the company or person. Each strength and weakness should be mentioned and given weights as per their importance and how can company make use of it or tackle it. This summary will give you internal factor analysis summary in strategic planning.
O: Opportunity for company or person can be identified outside company e.g. merger and acquisition and new markets to enter. Company has to tap these opportunities and convert them to strengths.
T: Threats for company or person can be identified outside company e.g. union problems, tsunami threats, strikes and technology changes. Company has to identify and rank them as per threat and damage rating and then find solutions using strengths.
Both opportunities and threats are found in environmental scanning. Again these are given weights and the summary is external factor analysis summary. In this even competitor analysis is done.
Here is example of SWOT: