SWOT Analysis VS PESTLE Analysis?

I learned both of this analysis in the second week classes. By doing the group discussion in class, I able to understand the use of the function on both analysis. Let’s me share my knowledge about the SWOT and PESTLE analysis in brief.

What is SWOT Analysis?

      S = Strengths – The advantages that we have over the competition concerning the project.

     W = Weaknesses – The disadvantages that we have internally compared with our competitors.

      O= Opportunities – Current external trends which are waiting to be taken advantage of.

      T = Threats – External movements which may cause a problem and have a negative impact on     our business. 

From each point, it is possible to identify the internal advantages or disadvantages which could be benefit to the outcome of a planned project. Besides, by using this analysis we also able to discover the external factors which could make a organization are success or failure of a project. It is a good to work through the SWOT Analysis in the early stages of project planning.

While, what is PESTLE Analysis?

It is stands for the analysis of the external factors which be beneficial when conducting research before beginning a new project or to help conduct market research. Unlike SWOT analysis, this strategy is more directly aimed at the external macro environmental factors that might be affecting the position of the business, the reasons behind growth or decline in the market and also identify new directions for the business as a whole.

      P= Political – Laws, global issues, legislation and regulations which may have an effect on our business either immediately or in the future.

      E= Economic – Taxes, interest rates, inflation, the stock markets and consumer confidence all need to be taken into account.

      S= Social – The changes in lifestyle and buying trends, media, major events, ethics, advertising and publicity factors.

      T= Technological – Innovations, access to technology, licencing and patents, manufacturing, research funding, global communications.

      L= Legal – Legislation which have been proposed and may come into effect and any passed legislation’s.

      E= Environmental – Environmental issues either locally or globally and their social and political factors.