4. The merging of steps 3 and 5 results Swot Analysis which is an analysis of anorganization's strengths, weaknesses, opportunities, and threats. It brings together the internaland external analyses ..The Role of Competitive Analysis in Strategy FormulationBefore an effective strategy to gain a competitive advantage can be formulated, the organization's competitive situation needs to be carefully analyzed.A. A SWOT ANALYSIS is one method for doing so. The SWOT analysis involves assessing organization strengths (S) and weaknesses (W), as well as environmental opportunities (O) and threats (T)1.. Strengths and weaknesses apply to internal characteristics, a. A strength is an internal characteristic that has the potential of improvinga. A strength is an internal characteristic that has the potential of improving the organization's competitive situation.to strategic moves by competitors.b. A weakness is an internal characteristic that leaves the organization potentially vulnerable2Opportunities and threats are found in the external environment.a. An opportunity is an environmental condition that o2 Opportunities and threats are found in the external environment.B. A threat is an environmental condition that offers significant prospects for undermining an