SWOT Analysis of UK

Swot analysis of UK (United Kingdom). The UK is a country situated on the northwestern coast of the European mainland continent. The country shares the border with the English Channel, the Atlantic Ocean, and the Republic of Ireland. London is the capital of the UK.

The UK comprises four countries like Scotland, Northern Ireland, Wales, and England. Edinburgh, Belfast, Cardiff, and London are the respective capital cities of all UK countries. They all have their separate government and political system.

She has a total area of 94,000 square miles. Approximately more than 67 million people are populating the country (67,886,011 to be more precise).

The government and administration system of the UK is a parliamentary democracy and constitutional monarchy. Queen Elizabeth II has been the reigning monarch since 1952.

According to an estimate, the annual GDP of the UK in 2022 was 3.19 trillion dollars and it’s the 6th highest in the world. The annual per capita was 47,317 dollars and it’s the 21st highest in the world.

Some of the main industries of UK are;

  • Clothing
  • Textile
  • Food processing
  • Consumer goods
  • Petroleum
  • Paper
  • Coal
  • Metals
  • Communication equipment
  • Electronic
  • Vehicles
  • Aircrafts
  • Shipbuilding
  • Railroad equipment
  • Electric power equipment

Today, we’ll study the swot analysis of UK. The swot analysis would help you to understand internal factors like strengths/weaknesses and external factors like opportunities and threats of the country. If you want to learn about macro-environmental factors, check out the pestle analysis of the UK. Here’s the swot analysis of UK as follows;

Strengths of the UK

Member of the World’s Organizations

The UK is one of the founders of the United Nation and she has a permanent position at the UN’s table. She has close relationships with the USA, the economic and tech superpower of the world.

The UK is also a member of some of the following world’s top organizations like the World Trade Organization, Commonwealth of Nations, Interpol, Council of Europe, Organization for Economic Co-operation and Development, NATO, G20, and G7.

Strong Economy

The UK’s economy is very strong with an annual GDP of 2.979 trillion dollars in 2020. She attracts a plethora of FDI (foreign direct investment) annually. Her GDP has dropped a little due to the pandemic covid-19.

Her economic system is a mixture of both the free market and a controlled economy. Whenever the economy starts to decline, the government steps in and provides support to businesses. For instance, the government has provided financial assistance to declining businesses due to the pandemic, lockdown, and shutdown.

Multinational Companies

The UK is home to some world’s leading multinational companies. Like TESCO, GSK (GlaxoSmithKline), Unilever, GP, AstraZeneca, Vodafone, Aviva, Dyson, Lloyd’s, ASOS, Shell, and BAE Systems.

Healthcare System

The UK has a publically-funded healthcare system NHS (National Health Service). The interesting thing about NHS is that it offers free universal healthcare services to the public. That’s what differentiates the UK from other developed countries like the USA where the healthcare system is very costly.

Cultural Heritage

The UK has got some of the world’s best cultural heritage sites and they attract millions of tourists every year. Some of those places are palaces, the world’s heritage sites, castles, national parks, countryside, landmarks, stone hinge, coastlines, and quaint villages. All of these places promote the tourism industry of the UK.

Education System

The higher education system of the UK is one of the best in the world. She has produced many famous historians, laureates, scientists, inventors, and intellectuals in different fields of study. She has got a great infrastructure like underground railways and well-established institutions for science and technology.


Some of the famous industries of the UK are manufacturing, construction, agriculture, tourism, drinks, and food. All of these things collectively attract many world’s top businesses and companies to her doors.

Weaknesses of the UK


The UK is one of the best places for FDI, but foreign direct investment has been declining for the past few years. For instance, FDI comprises 101 billion dollars in 2017, 65 billion dollars in 2018, 59 billion dollars in 2019, and 29.8 billion dollars in the first half of 2020.

Expensive Country

The monthly rental cost of a very small flat is around 1000 pounds in the poor areas of London. The UK is one of the very costly places to live in. The housing, property, and mortgage market is very expensive. The first owner of the property has to pay a huge price, then it becomes easier for the later generations.

Unequal Wealth Distribution

The UK is the world’s wealthiest country. The distribution of wealth is unequal among the population. She has the division of North and South-side. There are more job opportunities on the southern side than anywhere across the country. The gap between rich and poor and the regional opportunities gap is increasing.

Lacking Innovative Technology

China, Russia, and the USA are leading the world in innovative research and development and technology. Their spending on research and development and technology is very higher than the UK’s. That’s why she’s falling behind in the development of the latest technology.

Opportunities available to the UK

Free Trade

The Brexit deal created an environment of uncertainty in the business community. But it’s a way towards new possibilities and opportunities. The UK has established a free trade agreement with the European Union and other European countries. Now, she should develop a free trade agreement with other countries of the world as well.

Attracting Talent

The landscape, culture, and institutions attract talent from across the world. She could improve productivity by utilizing talented skilled professionals. It would also help her to meet the domestic demand and compete with the world in the international market.

Exporting Services

According to a report by the Institute of Export and International Trade, the UK has the highest level of exports worldwide. It’s a positive point about her economy. She’s also the world’s largest exporter of service professionals.

Some of the other exports of the UK’s economy are packaged medicament, gas tribune, cars, gold, and crude petroleum.

Threats the UK has to face


The world’s trade market has become very competitive in every field of life. Some of the major competitors’ countries of the UK are South Korea, Japan, Brazil, China, India, Russia, Canada, the USA, Italy, and Germany. Their growth rate puts great pressure on her economy.

Higher cost

It’s not only the housing and mortgage market that is expensive. The cost of running businesses is very high. They end up cutting down their expenses. The fall of private businesses means that people would lose employment opportunities. The higher unemployment rate is decreasing the purchasing power of people.

Economic Crisis

The lockdown and shutdown of businesses due to the pandemic have caused global economic crises. The FDI is decreasing and the unemployment rate is increasing both would cause huge problems in the future.

Conclusion: UK SWOT Analysis Example Country

After a careful study of the swot analysis of the UK, we have realized that the UK is indeed one of the world’s top countries. The expensive business market, declining FDI, and lack of innovative technology are some of the major issues that the UK should resolve; while paying heed to the internal strengths weaknesses; external opportunities threats of swot analysis example country.

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