A SWOT Analysis of The UK

Thomas Bush May 16, 2016

In this article, we’ll be carrying out a SWOT analysis on the United Kingdom, which
we just finished a PEST analysis on last week. SWOT analyses look at
the Strengths, Weaknesses, Opportunities, and Threats of a business venture,
company or even — as in this case — a country (or at least its economic
opportunities)! This analysis will provide insight into the future success or failure of
the country’s economic situation, and help to identify factors which might affect it
along the way.
Strengths
Identify the strengths is the first step in any SWOT analysis. The UK has a relatively
strong position in today’s global markets, supported mainly by the following aspects:
 Advantageous Trading Position: The United Kingdom has an established
place in the global markets, holding good relations with both importers and
exporters.
 Strong Tertiary Industry: The UK has scores of well-educated individuals
who provide value in tertiary, service-based industries. [1]
 High Standard of Education: The existing educational standards are of a good
quality, despite further education being relatively expensive.
 Plenty of FDI: The UK receives plenty of Foreign Direct Investment from other
countries, compared to some European states.
 Political Stability: Like most More Economically Developed Countries, the
United Kingdom has achieved seemingly national political stability.
Marea Britanie are o pozitie relative puternica in market-ul global actual, asigurat
de urmatoarele aspecte: si-a consacrat un loc in marketul global, detinand relatii cu
exportatoii si importatorii, detine un nivel inalt al educatiei si este stabila din punct
de vedere politic. De aici rezulta si punctele forte Potenţialul natural, Potenţialul
antropic, Dezvoltarea şi diversificarea capacităţii de cazare şi alimentaţie
Weaknesses
The weaknesses are the only other internal factor discussed in a SWOT analysis. In
the case of the country under discussion, some of the drawbacks include:
 Poor Transport: The UK is known for its poor transport systems, especially
industrial ones. This is to some extent a result of a high population and lots of
industry, but still acts a weakness. [2]
 Suboptimal Innovation: Compared to the United States or some areas in
Central Europe, the UK has a poor level of innovation, and trails other
countries in creation and production processes.
 Significant Internal Wealth Disparity: The United Kingdom has a growing
disparity in the affluence of its poorer and more wealthy individuals. [3]
Opportunities
The first external factor in a SWOT analysis, the opportunities are the potential
ventures that might be pursued for any form of gains, financial or otherwise. For
England, Wales, Scotland and Northern Ireland, these are:
 New Trade Partners: More lenient trade rules are springing up all over Europe,
the Middle East and Asia, which is good news for the UK, who might be able to
find new trade partners. [4]
 Riding Tech Waves: If the UK can create tech growth hubs similar to those
across the United States, it might get a much fairer slice of the tech market.
 Migrant Education: The United Kingdom’s current population has a
significant number of first-generation migrants, who often work in less skilled
fields. With the next generation of very cosmopolitan Brits, the UK could build
a much more intelligent population with good education.
Threats
Threats are the final factor in any SWOT analysis. Just as the name suggests, these
factors are opposite to opportunities — that is to say, possible negative forces. For
the United Kingdom, these might be:
 Competition: Many of Europe’s nations are working hard to reach levels of
development and wealth similar to those in the UK. When this happens, the UK
will have to directly compete with other countries, especially in the services
industries.
 Worker/Business Relocation: The United Kingdom’s almost overcrowded,
expensive nature is not a positive for most individuals and businesses, who
might move elsewhere in the hopes of finding lower overhead costs.
 Financial Crisis: Just like any other country, the UK has to consider the threat
of a financial crisis, which could be triggered by events across the world (the
end of China’s development boom, or a US recession).
In conclusion, the UK seems to be in a fairly good (however still suboptimal) economic
position right now, but has to reckon with the ever-increasing competition presented
by other nearby countries. If the United Kingdom can build a broader reach, educate
its (incoming) population, and spark high-end innovation processes, then it might
find itself in a very favorable position, come a decade or two.
Image “Red Devils – Un