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.