Which type of analysis helps identify a company's internal strengths and weaknesses compared to competitors?

The correct choice is SWOT Analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. This analytical tool specifically helps organizations evaluate their internal capabilities and limitations in relation to their market environment and competitors. By conducting a SWOT analysis, a company can systematically identify and assess its strengths—such as unique resources, skills, or capabilities—and weaknesses that may hinder its competitive advantage.

The comparison to competitors is integral to this analysis, as understanding where a company stands can directly inform strategic decisions. For example, recognizing internal strengths can help a company leverage those advantages in the marketplace, while identifying weaknesses allows for targeted improvements.

In contrast, PEST Analysis focuses on external factors—Political, Economic, Social, and Technological—that influence business operations but does not assess internal conditions. Competitor Analysis specifically examines the competition and their strategies but does not inherently analyze a company's own strengths or weaknesses. Market Analysis tends to gauge market conditions and consumer behavior rather than directly assessing a company's internal factors. Thus, SWOT Analysis stands out as the tool expressly designed for evaluating both internal and external facets pertinent to competitive positioning.