Swot analysis of Australia. Commonwealth of Australia is a country situated on the Australian continent and includes many other small islands. She’s the 6th largest country in the world with a total area of 2,969,907 square miles. Canberra is the capital of Australia.
Indigenous Australians populated the continent approximately 65000 years ago before the arrival of the western Dutch colonists in the 17th century. Great Britain claimed the Eastern half of Australia in 1770. The wave of the gold rush brought more westerns in the period of 1850s and it led to the exploration of most of the Island. The 6 colonies united and laid the foundation of the Commonwealth of Australia on Jan 01, 1901.
Approximately more than 26 million people are populating the Australian continent. The vast landscape of the country comprises tropical forests, mountain ranges, and deserts. International education, manufacturing, banking, telecommunication, and mining are some of the main sources of her earnings.
Today, we’ll discuss the swot analysis of Australia. Here we’re going to focus on the growth and development of the world’s developed country. For external factors, check out the pestle analysis of Australia. Here’s the swot analysis of Australia as follows;
Strengths of Australia
Member of World’s organizations
Australia is a leading member of the world’s organizations. Like ASEAN Plus Six, Pacific Island Forum, United Nations, Asia Pacific Economic Forum, G20, World Trade Organization, Commonwealth of Nations, Organization for Economic Co-operation & Development, and ANZUS. The country has also established close relations with the Pacific, Asia, and the USA.
According to an estimate, the annual GDP of Australia in 2020 was 1.375 trillion dollars and it’s the world’s 13th highest. Out of which the per capita earning of the country was 50,844 dollars and it’s the world’s 10th highest. Her GDP has decreased in 2020 because of the pandemic of covid-19. The country has developed good economic relationships with neighboring countries like South Korea, Japan, China, New Zealand, and many others.
Australia has one of the world’s best educational institutes. Some of them are the University of Western Australia, Monash University, the University of Queensland, University of New South Wales, University of Sydney, University of Melbourne, and The Australian National University.
The network of strong educational institutes is the main reason behind the growth and development of the country.
According to an estimate, 30% of Australians population of approximately more than 10 million people consists of immigrants. It’s the highest number of immigrants that any country has across the world. She has become a multi-cultural and multi-ethnic society that has the patience and tolerance to accept others.
Every 2nd Australian is either an immigrant or the child of immigrants. She has migrated highly skilled professionals from across the world. They have greatly contributed to her growth and progress.
Australia is home to the world’s most beautiful beaches and natural landscape. They attract millions of tourists from across the world every year. Kangaroos, Red Centre, Great Barrier Reef, ancient limestone pillars, mountains, and forest are very important to her tourism industry.
Weaknesses of Australia
The Australian lifestyle is very costly and expensive to live especially in the big cities like Sydney and Melbourne. Her people pay a lot of money to meet the necessities of life. For instance, the cost of 6 free-range eggs is 3 dollars, 1 Kg carrot for 2.5 dollars, and 2 liters of orange juice is for 4.8 dollars. The prices are a bit lower outside of Australia.
Gender Pay Gap
According to a report by Barraclough, working women receive approximately 253.60 dollars less than males per week. It means the country faces a lot of 1000 dollars monthly for every working woman. The gender pay gap is a serious problem.
Homelessness is increasing in Australia and has reached 14%. According to an estimate, every 1 in 200 is homeless. The pandemic of covid-19 has decreased the homeless rate temporarily. It’s very common among young people.
The growing trend of Freelancing and the gig economy is increasing the unemployment rate. Now, people prefer to hire temporary workers online instead of keeping them permanently on a monthly payroll. The job security of many regular employees is in jeopardy.
Opportunities available to Australia
Australia heavily relies on the mining, agriculture, service, and manufacturing industry as its major sources of income. Now the country should change its focus on the tech industry just like the American and Chinese economies. Tech companies like Google, Facebook, Amazon, Microsoft, Apple, Samsung, Huawei, and many others add billions and trillions of dollars to their country’s revenue.
According to an estimate, approximately more than 1.4 million people visit Australia annually and it would increase in the upcoming future. They’re usually from Asian countries like Korea, Japan, Taiwan, and China. Her tourism industry has great growth potential.
Along with the tourism industry, 10% of her exports and 12% of her imports are from Asian countries. Her trade and tourism industry would grow with the neighboring countries.
Threats Australia has to face
The pandemic of covid-19 has reduced the purchasing power of people because many people lose their jobs. Many more will in the post-pandemic crisis when the international market would open again. The unemployment rate reached 7% by the end of 2020 and it’s very high.
Russia, India, Argentina, Brazil, China, and the USA are some of the major competitive countries of Australia in the agriculture industry. Indonesia, Canada, Russia, China, and the USA are prominent competitors in the mining industry. Their growth in the international market impacts their product price.
Breakdown of Diplomacy
Indonesia is the world’s 3rd largest democracy and 10 times more populated than Australia. Both of the countries share a border. The political, social, and religious conflict with South Asian countries resulted in the form breakdown of diplomatic relations with them especially Indonesia. The conflict with the neighboring countries isn’t good for her economy.
After a careful study of the swot analysis of Australia, we’ve realized that Australia is indeed the world’s leading advanced and developed country. But the increasing unemployment rate, high competitors, expensive lifestyle, and conflict with neighbors are serious threats to the country. Australia should utilize its economic strength, tourism industry, and other alliances to address these issues.