SWOT Analysis (Edexcel A Level Business)

STRENGTHS

• What the business is good at

For example:

• Qualities that separate the business from rivals

• Internal resources such as skilled staff or a particular innovation

• Possession of assets such as capital, patents or intellectual property

• A loyal customer base

• Effective leadership

WEAKNESSES

• What the business does poorly
  

  For example:

  • Ways in which the business lags behind competitors

  • Resource or capital limitations including labour and finance

  • Lack of a competitive advantage

  • Lack of a unique selling proposition (USP)

  • Poor online presence

OPPORTUNITIES

• Options a business may exploit to enjoy further success
  

  For example:

  • Developing markets for specific products become apparent

  • Few competitors exist

  • A changing legal or political environment positively impacts on business processes and decisions

  • Social or technological developments create an emerging need for the businesses products

  • Economic indicators becoming more favourable

  • A potential for positive media coverage of the business

THREATS

• Hazards that have the potential to damage business performance
  

  For example:

  • New or emerging competitors are gaining market share

  • A changing legal or political environment negatively impacting on business processes and decisions

  • Social or technological developments threaten obsolescence of products

  • Economic indicators becoming less favourable

  • Negative press coverage

  • Changing customer attitudes towards the business