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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.
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
Reasons why it is useful:
Answer
SWOT analysis serves as a strategic planning tool that helps businesses like Bluebells identify their internal strengths and weaknesses, as well as external opportunities and threats.
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Strengths: Bluebells boasts an excellent reputation, evidenced by consistent 5-star reviews. This strong brand image can be leveraged to counteract competitive threats and attract more customers.
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Weaknesses: Being a small business run by Les and Liz means that they may not have the expertise to conduct an effective SWOT analysis. This limitation could make it challenging to identify their weaknesses accurately.
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Opportunities: Bluebells can explore technological advancements and travel websites, like Booking.com and TripAdvisor, to enhance their marketing and reach to potential customers.
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Threats: By identifying the threats posed by competing guesthouses and hotels, Bluebells can strategize to improve their offerings and differentiate themselves in a saturated market.
Step 2
Possible Counterbalance:
Answer
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Market Competition: The UK holiday market is known for its competitiveness and fast-changing dynamics. If Les and Liz are unable to adapt their strategies through SWOT analysis to these rapid changes, Bluebells may suffer.
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Knowledge Gap: As a small business, Bluebells may lack the resources and knowledge necessary to perform an in-depth SWOT analysis. This could lead to ineffective decision-making based on an inaccurate understanding of their business environment.
Step 3
Potential Judgment:
Answer
Conducting a SWOT analysis can be highly beneficial in guiding Bluebells' strategic decisions, particularly as it enables Les and Liz to focus on the most impactful factors affecting their business. However, the effectiveness of SWOT analysis is contingent upon the owners' ability to stay updated with market trends and adapt their strategies accordingly. In light of the fast-changing tourism industry, decisions derived from a SWOT analysis may become outdated quickly, thus limiting its overall usefulness.