ITPEC FE Morning October 2018 Question 68
ITPEC FE Morning October 2018 — Question 68 of 80
SWOT Analysis — Understanding factor classification
In SWOT analysis, factors are classified along two axes: internal vs. external and positive vs. negative.
| Positive | Negative | |
|---|---|---|
| Internal | Strength | Weakness |
| External | Opportunity | Threat |
The correct answer is a) Entry of strong companies in the market.
New competitors entering the market is a classic external negative factor — a Threat. The company cannot control it, and it can harm business performance.
Why not the others:
- b) High growth rate of the business domain is external but positive — that's an Opportunity
- c) High production efficiency is an internal positive factor — that's a Strength
- d) Low market share is an internal negative factor — that's a Weakness
Key rule: First determine if the factor is inside the company (S/W) or outside (O/T), then whether it's helpful or harmful.
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