ITPEC IP April 2019 Question 84
A company that is considering entering a certain industry conducted a SWOT analysis. Among the analysis results, which of the following is the one that corresponds to an opportunity?
Explanation
Deregulation in the industry — an opportunity is a favourable factor outside the company.
SWOT sorts factors on two axes. Internal factors, which the company owns or controls, are strengths or weaknesses; external factors in the market and environment are opportunities or threats. Deregulation is a change in the environment that lowers the barriers to entering the industry, so for a company planning to enter it is an external, favourable factor: an opportunity.
Answer (b)
Why not others:
- •(a) — success experience in an existing business belongs to the company itself: an internal strength
- •(c) — the company's product development capability is an internal strength
- •(d) — a nationwide retail store network is a resource the company owns: an internal strength
Key rule: Ask first whether the company controls the factor (internal: S or W) or not (external: O or T), then whether it helps or hurts.
Business Strategy Management · AI-written, may contain errors
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.