SWOT Analysis (Edexcel A Level Business): Revision Note

Strengths

• What the business is good at

For example:

• Qualities that separate the business from its 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

  • Poor online presence

Opportunities

• Options a business may exploit to enjoy further success
  

  For example:

  • Developing markets for specific products becoming apparent

  • Few competitors existing

  • A changing legal or political environment positively impacting the business's processes and decisions

  • Social or technological developments creating an emerging need for the business's products

  • Economic indicators becoming more favourable

  • The potential for positive media coverage

Threats

• Hazards that have the potential to damage business performance
  

  For example:

  • New or emerging competitors gaining market share

  • A changing legal or political environment negatively impacting the business's processes and decisions

  • Social or technological developments threatening the obsolescence of products

  • Economic indicators becoming less favourable

  • Negative press coverage

  • Changing customer attitudes towards the business