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A SWOT analysis allows you to know where you stand in relation to the market and your direct or indirect competition.
Let's say you decide to open a new restaurant in a large mall that offers a variety of different cuisines. Let's also say that this particular mall is sold out and has a food court with a high density of restaurants and other restaurants scattered throughout the mall. Since you're a later entrant, you ended up being away from the food court and belonging to the scattered lot.
In this case your weaknesses would include (1) the lack of specialty in food to customers who actively seek a specialized restaurant which would be able to hire a cook proficient in a specific type of food without having to sacrifice the quality of some of the options in the menu, and (2) the reduced awareness/association of your restaurant to this mall/lack of familiarity.
Your strengths would include (1) your distance from the competition (blue ocean), and (2) your ability to tailor your food to different tastes and diverse groups of people who seek to have dinner together.
An example of threats would be the (1) overall saturation of the mall with various options for food (red ocean), and (2) late entry that would require you to steal share of other competitors rather than than acquiring new, non-loyal customers to any particular restaurant.
Examples of opportunities would be (1) the volume of people who frequent the mall, and (2) the option to tailor your menu according to demand since few customers would expect you to have particular, unpopular dishes.
However, before you draw out your SWOT analysis you should bare in mind that a lot of these elements would fall into one category or the other depending on your outlook. Say, you have two restaurants who specialize in Mexican food. These two restaurants could view each other as threats and try to steal customers from one another (threat), or they could collaborate and work together to increase awareness of Mexican food in general (opportunity).
