Right at the begining it will be explained what SWOT analysis is, the features and the origin of this analysis, the advanteges and disadvanteges of SWOT analysis, elements of the SWOT analysis,respectively the internal surroundings (weaknesses and strenghts), then the external surroundings (opportunities and threats), of the SWOT analysis and it's four main conclusions, which can be deduced form the SWOT analysis, and the process of conducting the analysis. The focus is put on the town of Požega which is the pearl of the "Golden valley", which is located in a valley surrounded by the hills of Psunj, Papuk, Krndija, Dilj and Požeška gora. The town of Požega has 26.403 inhabitants, with almost eight centuries of written history, but with archeological evidence pointing at prehistoric inhabitation. This town is first mentioned in 1227., when the castle of Požega became a royal fief. By examining the social development and infrastructure, economy, urban enviroment, turism and agriculture it can be seen that the increase in competitiveness of the Požega region is based on three development factors which are the development and growth of the economy, sustainable space and town infrastructure management and the increase of public service quality and social inclusion. From the SWOT analysis obvious weaknesses of Požega can be seen in the field of satisfying the needs of socialy marginalized groups but also of those groups in a unfavorable position. First and foremost is the problem of insufficent creation of new working places which leads to the inactivity and demotivation of unemployed citizens which on the other hand leads to people leaving the town in search of a better life.