The comparison between SWOT analysis and PESTLE analysis

SWOT analysis and PESTLE analysis are both commonly used methods in business analysis, and they can provide a corresponding basis for management to make decisions. In this paper, we will introduce these two methods and compare them briefly. If you don't know where to start when writing, contact GPA Expert for help.

We have introduced the SWOT analysis method before, its steps are as follows:

1. She/he needs to identify the current implementation strategy;

2. She/he should confirm the changes in the external environment of the enterprise;

3. She/he identifies the key capabilities and constraints of the enterprise according to the resource mix of the enterprise;

4. She/he makes the final evaluation by scoring and evaluating.

SWOT is usually divided into two groups named SW and OT: SW (analysis of strengths and weaknesses). She/he must analyze the comparison between an enterprise and its competitors, and rivals based on the objective or customer perspective. OT (Opportunity and threat analysis), after the SW analysis, she/he should have her/his eyes on the future of the social environment, which factors bring the development opportunities, and which factors bring the challenges for future development.

PESTLE analysis

PESTLE analysis mainly consists of political, economic, social, legal, and ecological components. From here, it seems that its analysis Angle is similar to the "opportunity and threat analysis" part of SWOT analysis, and it applies to a wider range of objects. In fact, it is not quite the same.

Differences between the two methods:

1. The nature of the conclusions is different. The contents of the SWOT analysis are closely related to the research objects. They are all investigated and matched with each other in the analysis of various factors, and the conclusions obtained are decisive. However, PESTLE analysis analyzes the situation faced by enterprises through six factors, and its conclusion is not necessarily decision making.

2. Different characteristics of analysis. SWOT analysis has remarkable structural and systematic characteristics; the structural features are formally represented as the construction of the SWOT structure matrix, and different areas of the matrix have different meanings. In terms of content characteristics, we need to analyze the external environment and internal resources of enterprises from the perspective of structural analysis. For PESTLE analysis, sufficient research materials are required as basic research materials. In whatever aspect, it requires analysts to have a deep understanding of the analyzed enterprise and place the enterprise in the macro social environment regardless of the analysis.

3. Different application fields. SWOT analysis is mostly used to formulate the group's development strategy and analyze the situation of competitors, while PESTLE's analysis is a strategic external environment analysis tool for enterprises, which lays more emphasis on the long-term development strategy of enterprises.

At last, the selection of SWOT analysis and PESTLE analysis should be combined with the specific applicable objects. If you want to write SWOT or PESTLE about a specific enterprise, you can contact GPA Expert to help you finish it, we will provide quality service!