A strength is what the business are good at. It is mainly about competitive advantages. Examples are low cost and differentiation. On the other hand, weakness is the opposite of strength such as fading of a brand, not a strategic location and high overheads.
An opportunity is a condition that can support the strength of a company. Example of this situation is when your competitor goes into liquidation. Your company can take over your competitor customer and the business will become more successful. A threat is where a company cannot prevent from coming. For example, when a new competitor enters your business and mainly Brexit. Brexit is where the United Kingdom (UK) will leave the European Union (EU).
The political aspect can refer to the political stability of a country and tax guideline. For example, when there is a war in a country, the country cannot export their things to other countries. Legal factors are also connected with political factors. One of the legal factors are the changes of law. For example, if we own a watch company and the law says that everyone needs to wear a watch every day. Then, our markets will go higher. Unfortunately, if the change back to normal, our markets will go downwards.
Economic factors focus on the stability of the exchange and interest rate. Both are different. Exchange rates are how much another currency can buy. For example, in January 2018 the exchange rate for British Pound to US Dollar is $1.41. An interest rate is a reward for saving and the cost of borrowing. The rates will change every hour that will set by the Bank of England.
The social analysis generally refers to the population of a culture.
The technological focus on the level of technological development of a country. For example, China has more modern technology than South Africa.
Brexit is the main unknown in the future of UK. The president of United State of America (USA), Donald Trump, wants the fewer impact to the USA due to his “America First” policy.