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Management (U4)

Business Management and Enterprise (Year 12)

Internal and External Analysis - SWOT

Content Writers

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Kanwal Singh

A SWOT analysis is a method of analysing a business’ competitive position and is composed of four main components:

  1. Strengths (internal)

  • These entail what a business does well and relates to the internal aspect of a firm:

  • A firm's expertise in certain fields, such as marketing, operations and more

  • Ability to produce innovative goods and services

  • Quality processes and procedures

  • Other unique selling points (USPs)

2. Weaknesses (internal)

  • These refer to what a business does poorly and revolves around the internal aspect of a business:

  • Lack of expertise in certain fields

  • Undifferentiated goods and services, when compared with competitors or past performance

  • Weak brand image

3. Opportunities (external)

  • These refer to external initiatives that can place a business in a stronger, more competitive position.

  • The market for a particular product may be growing

  • New technology in the space of that market

  • Increased investment

  • Competitors going out of business

4. Threats (external)

  • These are any external factors that can be harmful for a business:

  • Social perception and brand image, which is easily influenced through social media

  • Natural disasters and unexpected shocks, like pandemics

  • Legislation changes

  • Increased competition


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