3.1.3 SWOT analysis Flashcards
What is SWOT analysis?
A method of discovering what areas a business has the upper hand on other businesses and which areas they are not so strong and need to improve.
Strengths, Weaknesses, Opportunities and Threats.
What are the strengths of a business?
This could be some of the resources a business have or their marketing. For example, a large business may have the advantage of economies of scale, however a smaller businesses may benefit from their good customer service leading to brand loyalty.
What are the weaknesses of a businesses?
Areas that a business may be weak in. e.g. smaller businesses may be threatened by the lack of finance available to them meaning they are unable to expand quickly.
What are the opportunities for a business?
May have opportunity to expand. e.g. lowering of interest rate then it may give the perfect opportunity for businesses to grow and invest it in the business.
What is a potential threat to a business?
A threat to a business’ success. e.g. may be new entrants into the market or changes to fashions and trends
