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2 (a) Explain one benefit Sports Direct could gain from conducting a SWOT analysis. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Question 2
2 (a) Explain one benefit Sports Direct could gain from conducting a SWOT analysis.
Worked Solution & Example Answer:2 (a) Explain one benefit Sports Direct could gain from conducting a SWOT analysis. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Step 1
Step 2
Application to Sports Direct
Answer
One significant internal strength for Sports Direct is its generated sales revenue of £3.359.5 million in 2018. Moreover, a notable internal weakness is that Sports Direct faced a loss of £85 million from its investment in Debenhams. An external opportunity presented by acquiring House of Fraser is the potential transformation into the 'Harrods of the High Street.'
Step 3
Analysis of the Benefit
Answer
Conducting a SWOT analysis is vital for Sports Direct as it helps to plan their strategy to achieve goals. For instance, aligning objectives with the aim to be the 'Selfridges of Sport' allows Sports Direct to strategically leverage its strengths to capture new market opportunities.