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Assess the usefulness of SWOT analysis for Bluebells’ continued success - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Question 2
Assess the usefulness of SWOT analysis for Bluebells’ continued success. Extract E Bluebells is a seven-bedroom bed and breakfast guesthouse in Keswick, Cumbria, ow... show full transcript
Worked Solution & Example Answer:Assess the usefulness of SWOT analysis for Bluebells’ continued success - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Step 1
Explain the usefulness of SWOT analysis
Answer
SWOT analysis is a strategic planning tool that helps a business identify its strengths, weaknesses, opportunities, and threats. For Bluebells, its strengths include an excellent reputation and high review scores on platforms like TripAdvisor, which can be leveraged to attract more guests and combat competitive threats. Additionally, as a relatively small business operated by Les and Liz Miller, Bluebells can respond quickly to internal challenges and external market changes, tailoring its services accordingly. By evaluating its weaknesses, such as limited marketing resources compared to larger competitors, Bluebells can strategize on ways to enhance visibility and attract more customers.
Step 2
Identify potential opportunities for Bluebells
Answer
Bluebells can exploit opportunities through technology, such as utilizing booking platforms like Booking.com and TripAdvisor for wider exposure. By identifying trends in tourism, such as increased demand for sustainable or unique experiences, Bluebells could adjust its offerings (e.g., themed packages, partnerships with local attractions) to better cater to customer needs. This adaptability is essential in a dynamic market.
Step 3
Assess threats facing Bluebells
Answer
Bluebells faces threats from existing competitors like hotels and other guesthouses, which may offer similar services at competitive prices. The growing popularity of alternative lodging options like AirBnB can further complicate its market position. Additionally, economic fluctuations and changing travel patterns (impacted by global events) can affect occupancy rates and pricing strategies, necessitating a timely response to maintain profitability.
Step 4
Evaluate the limitations of SWOT analysis for Bluebells
Answer
Despite its benefits, SWOT analysis has limitations for Bluebells. As a small business, Les and Liz may lack the expertise to implement an in-depth SWOT analysis effectively. The fast-paced nature of the tourism industry means that insights gleaned may quickly become outdated, thus limiting the long-term applicability of any strategies developed. Furthermore, focusing solely on internal and external factors without considering the nuances of their operating environment may lead to oversimplified conclusions.