SWOT Analysis of The USA: A Superpower with Weaknesses

PESTLEanalysis Team
PESTLEanalysis Team
SWOT Analysis of The USA: A Superpower with Weaknesses
Table of Contents
Table of Contents

Our SWOT Analysis of The USA highlights the Strengths, Weaknesses, Opportunities and Threats of one of the world's superpowers.

Have you ever imagined yourself driving a fancy car in California? Or living in a beautiful apartment in Beverly Hills? If yes, then you must be an admirer of the USA.

Millions of people wish to visit the USA at least once in their lifetime. If you happen to be among those people, make sure you finish this article because, in this article, we will be conducting the SWOT Analysis of The USA since we already covered its PESTLE analysis.

So fasten your seatbelts and get prepared for a journey to the USA! The USA is a multicultural country with a rich history.

Photo by Pixabay

The USA was ruled by the British in the 17th and 18th centuries. However, after experiencing British rule for a brief period, the citizens of the USA started a struggle for independence by waging war against the British in 1775.

This war is also known as the "American Revolution" since, by the end of this war, the USA gained independence from the British in 1783.

In the next few years, the USA developed its first constitution, after which George Washington was elected as the first president of the USA.

The USA witnessed growth in these years. Moreover, the country also expanded in the coming years. In the 19th century, the USA expanded all over the North American continent through treaties and land acquisitions.

As new states joined the USA, they demanded rights. However, they weren't getting any which created tension between states. Moreover, protests against slavery began, igniting a civil war in the USA in 1861.

The civil war ended in 1865, which ended slavery across the country. Freed slaves got their rights, and the USA started to rebuild.

After almost a decade, the USA experienced the industrial revolution. Rapid manufacturing and technological advancement helped the USA in growing. As a result of industrialization, new cities were formed, and the infrastructure was improved.

After the industrial revolution provided bread to empty stomachs, people started paying attention to social issues such as corruption, women's rights, economic inequality, etc. As a result, reforms were made to address these issues, and as a result, the USA solved its societal problems.

Later, in the 20th century, the USA became a significant part of both World Wars and emerged as a superpower. The USA got economically stable after becoming a superpower. A few years down the lane civil rights movement started in the USA.

This movement was about ending discrimination and racial segregation in the county. Martin Luther King Jr led this movement. In the same 20th century, the USA indulged in a Cold War with the Soviet Union.

The USA witnessed further technological advancements and economic growth in the 21st century. However, the USA faced several challenges, such as the Iraq and Afghan wars.

Currently, the USA is the largest economy in the world. In 2023, its GDP was recorded to be $23.3 trillion. Moreover, it is the second-largest exporter in the world.

Besides that, the USA is far ahead of most countries in terms of technological advancement, and it has one of the most stable democratic systems, which provides it an opportunity to attain further growth in the coming years.

Now that we are done discussing the history of the USA in detail let's talk about what SWOT Analysis is. SWOT analysis is a tool that highlights the strengths, weaknesses, threats, and opportunities that are present for a business, industry, or country.

A SWOT template helps us in analyzing the external and internal factors that create an impact on the operations of a business, industry, or country. Now that we have discussed what SWOT analysis is, let's proceed further and conduct the SWOT analysis of the USA.

Photo by Karolina Grabowska

Strengths of The USA

Different countries possess various types of Strengths. These strengths provide an opportunity for countries to stand out. Let's take a look at what strengths the USA possesses.

Economically Strong

In today's world, economic strength is essential for any country's progress. The USA has been fortunate enough that it witnessed the industrial revolution in the 18th century.

This provided it a global advantage since, at that time, only a few countries were as technologically advanced as the USA. From there onwards, the USA started manufacturing and exporting its products globally.

Currently, the USA has the largest GDP of $23.3 trillion. This provides the USA economic independence and the ability to fight economically challenging situations.

Technology And Innovation

The USA has been a hub of technology for centuries. It has some of the oldest top-class universities, such as Harvard and MIT. Moreover, the USA has been ahead of most countries in research.

Some of the top medical research is conducted at Johns Hopkins, one of the world's best hospitals and medical research institutes in the USA. Moreover, all the top research about space is carried out at NASA, which is again an American Institute of Aeronautics and space administration.

Besides that, the USA is a home for many tech companies. Silicon Valley in the USA provides the perfect business environment for tech businesses. As a result, the USA tech industry flourishes.

Strong Military

Countries need to have a strong military for protection. Moreover, a battle-hardened military ensures peace and stability in the country, which results in foreign investments.

The USA has the most powerful military in the world. The USA spends almost $601 billion on its military expenditures yearly to ensure it has the best equipment and latest technologies.

Besides that, the USA's military is battle-hardened. It is the only army that has fought most wars in recent times. Hence, the US military is ready for any challenge.

Photo by Pixabay

Weaknesses of The USA

Every country has some weak areas where it requires attention. Similarly, the USA has some weaknesses to address if it wants to succeed and progress. So let's discuss some of the weaknesses of the USA.

Economic Inequality

Having a large GDP doesn't necessarily mean that the living standard of most people in that country is good. For example, an economy may have a large GDP, but only a small percentage of its people are wealthy.

The GDP of the USA has increased over the years. However, the gap between poor and rich people has widened recently. This means that unequal distribution of wealth exists in the USA.

Economic inequality is bad for countries because it is the leading cause of many societal problems, such as corruption, theft, etc. Since economic inequality is increasing in the USA, it can create problems for the country.

Expensive Healthcare

Healthcare is a basic necessity and requirement of every human being. Many countries provide free or cheap healthcare to their citizens. However, the USA is where healthcare facilities are considered the most expensive.

This situation makes it challenging for individuals to manage the cost of basic healthcare facilities in the USA, so people prefer self-medication and suffer from severe side effects.

Moreover, expensive healthcare discourages people from getting healthcare services, due to which they remain untreated. Hence, their productivity falls.

Gun Violence

The basic sense of security really matters to the citizens of any country. The USA is generally considered a safe country to live in. However, a few states of the USA witness frequent gun violence due to relaxed gun laws.

There have been several mass shooting incidents in schools and public places. Besides mass shootings, several people have also committed suicide due to access to firearms.

In 2021, record incidents of gun violence were reported. As per the data, 26,328 people committed suicides, whereas 20,958 people were murdered in the same year.

Photo by Pixabay

Opportunities Present For The USA

Every country is allowed to improve. However, to avail of these opportunities, countries need to recognize the opportunities ahead of them. This section will highlight some of the opportunities that are present in the USA.

Technological Advancement

In the current era, investing in technology can be a game-changer for countries. The USA already invests heavily in technology. It has some of the best researchers and some of the biggest fintech companies.

However, suppose the USA pays more attention and diverts its resources to the latest technologies, such as artificial intelligence, biotechnology, renewable energy etc. In that case, the USA can develop a competitive advantage over other countries and sell these technologies to other countries.

Introduce Strict Gun Laws

Relaxed gun laws have created a lot of trouble for the USA as it has caused an increase in gun violence. Each year, thousands of people commit suicide or murder someone because of the relaxed gun laws in some states of the USA.

The USA is among the top few countries that experience the most gun deaths annually. The high frequency of firearm deaths has damaged the USA's reputation worldwide.

However, the USA has an opportunity to improve its image and decrease the deaths caused by gun violence by introducing strict gun laws.

Transition To Clean Energy

Ever since the Paris Agreement on climate change has taken place, governments worldwide have started paying attention to sustainable development and clean energy practices. But unfortunately, one of the major sources of the emission of greenhouse gases is fossil fuel.

The USA is among the top emitters of greenhouse gases. However, it can reduce its carbon emissions by producing clean energy. By doing so, the USA can improve its image worldwide.

Photo by RDNE Stock project

Threats Present For The USA

Every country faces different types of threats from the external environment. In this section, we will be analyzing some of the threats that the USA faces externally.

Upcoming Recession

Recession is a nightmare for countries. When an economy is affected by a recession, it shrinks because people stop spending because their purchasing power falls. Moreover, unemployment prevails, which further causes the living standards to fall.

Before COVID-19, the USA was doing pretty well economically. However, ever since the pandemic happened, economies shrunk, due to which it is predicted that 2023 might be the year of recession.

If a recession occurs in 2023, the USA will suffer badly economically. As a result of that economic fallout, the USA might have to go through social unrest.

Climate Change

Climate change is a reality that is impacting the entire world through natural disasters and extreme weather changes. Overall, the frequency of natural disasters has increased globally by ten times. As a result, the USA is also expected to bear economic losses due to natural disasters.

Besides the economic loss, the USA might also suffer the loss of lives, which would be terrible for the USA. Other than that, an increased number of injured patients due to natural disasters could crash the healthcare system.

Geopolitical Challenges

Every country aims to have good relations with fellow countries because a stable geopolitical scenario is suitable for development. However, the USA is currently dealing with several challenges on the geopolitical front.

For example, after Russia invaded Ukraine, the relationship between Russia and the USA worsened day by day. Similarly, USA's relationship with China is deteriorating. The USA needs to deal with these challenges in order to progress.


SWOT Analysis of The USA: Final Word

The USA is a country with rich history and culture. Before the USA gained independence, it was ruled by the British. However, as the states of the USA created pressure on the British, they were forced to give independence to the USA.

From there onwards, the USA started its democratic journey. It saw ups and downs in between but remained steadfast.

In today's article, after discussing the history of the USA, we conducted a SWOT analysis of the USA to analyse the strengths, weaknesses, opportunities, and threats that the USA faces.

Besides giving you insights into the USA, we are sure this article must have taught you how to conduct a SWOT analysis. The findings of this SWOT analysis can also be presented more precisely through a SWOT Matrix or a SWOT table.

If you liked reading this article, and want to know more about SWOT analysis, have a look at some of its examples.

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