What is the difference between SWOT and PESTEL analysis, and why do both matter for Maliban?

What is the difference between SWOT and PESTEL analysis, and why do both matter for Maliban?

 

 

Students tend to mix up SWOT and PESTEL as they both find application in strategic analysis. They are applied to different purposes and different things though. SWOT (Strengths, Weaknesses, Opportunities, Threats) is mostly an external and internal diagnostic tool that is a snapshot of the company's current situation. It's more introspective. PESTEL (Political, Economic, Social, Technological, Environmental, Legal), on the other hand, considers macro-environmental factors that are external and most likely to be beyond your control.

In Maliban's case, SWOT helps identify such factors as its positive brand image (Strength), dependence on suppliers (Weakness), expanding new markets (Opportunity), and competition from Munchee (Threat). These help Maliban in either improving internally or capitalizing on short-term market trends.

In contrast, PESTEL analysis delves into broader factors. For example, economic instability in Sri Lanka has a direct influence on consumer expenditure behavior. In addition, political factors, including food safety laws or trade policy, heavily influence costs and export planning. Technological advancements might increase production efficiency, while cultural trends promoting healthy diets force Maliban to create sugar-free biscuits.

Both are necessary. SWOT indicates what Maliban can manage or take advantage of, and PESTEL indicates what it has to cope with or hedge against. For students, employing both provides a balanced strategic perspective and assists in critical thought regarding how businesses prepare for internal and external issues.

 

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