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What is meant by the term SWOT analysis? Conduct a SWOT analysis on a business of your choice - Leaving Cert Business - Question A - 2010
Question A
What is meant by the term SWOT analysis? Conduct a SWOT analysis on a business of your choice. (Include two points under each heading)
Worked Solution & Example Answer:What is meant by the term SWOT analysis? Conduct a SWOT analysis on a business of your choice - Leaving Cert Business - Question A - 2010
Step 1
What is meant by the term SWOT analysis?
Answer
SWOT analysis is a strategic planning tool used to assess and evaluate a business's internal strengths and weaknesses, as well as external opportunities and threats. In a SWOT analysis:
- Strengths are internal attributes that give the business a competitive advantage.
- Weaknesses are internal factors that may hinder performance.
- Opportunities are external conditions that could be beneficial for growth.
- Threats are external challenges that could jeopardize the business's performance.
The aim of SWOT analysis is to maximize strengths and opportunities while minimizing weaknesses and threats.
Step 2
Conduct a SWOT analysis on a business of your choice.
Answer
Business Choice: Ryanair
Strengths:
- Brand name: Ryanair has developed a well-recognized brand through its 14 years in the market.
- Internet site: High booking rate (94% bookings) via www.ryanair.com, which lowers the cost of bookings.
Weaknesses:
- Distance of some regional airports from advertised destinations can be inconvenient for customers.
- Prone to bad press which may tarnish the company's reputation.
Opportunities:
- EU enlargement allows for new destinations to be added throughout the EU.
- Economic slowdown may actually help Ryanair by lowering corporate travel costs, allowing it to ‘steal’ customers from traditional carriers.
Threats:
- Dependence on oil markets, as fuel costs directly impact ticket prices.
- Increase of low fare competition, which could pressure profit margins.