ITPEC FE Morning October 2018 Question 68
In SWOT analysis, which of the following is generally positioned as a threat?
Explanation
Entry of strong companies in the market — a new powerful competitor is an external factor that harms the company, which is a threat.
SWOT sorts factors on two axes:
The company cannot control who enters its market, and a strong entrant takes customers and pushes prices down, so it is external and harmful.
Answer (a)
Why not others:
- •(b) — a fast-growing business domain is external but helpful: an opportunity
- •(c) — higher production efficiency than competitors is internal and helpful: a strength
- •(d) — a low market share is the company's own position and harmful: a weakness
Key rule: First ask whether the company controls the factor (internal S/W) or not (external O/T), then whether it helps or hurts.
Business Strategy Management · AI-written, may contain errors
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