📚 Learning Guide
SWOT Analysis
easy

A tech startup is assessing its market position. Which of the following factors should be classified as a 'Threat' in a SWOT analysis?

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Choose the Best Answer

A

A strong competitor launching a similar product

B

A unique technology that sets the startup apart

C

Access to funding for product development

D

A growing market demand for innovative solutions

Understanding the Answer

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Answer

Threats in a SWOT analysis are external problems that could hurt the startup, such as a new competitor, a change in regulation, or a sudden drop in consumer demand. They are the opposite of opportunities and must be monitored because they can directly damage the business. For instance, if a large tech firm launches a similar product, that launch is a threat because it could take market share. Identifying threats lets the startup plan defenses or pivot strategies early.

Detailed Explanation

A new competitor that offers a similar product can take customers away and lower the startup’s sales. Other options are incorrect because Having a unique technology is an internal advantage, not a danger; Getting money for product development is a chance to grow, not a danger.

Key Concepts

SWOT Analysis
Strategic Planning
Market Analysis
Topic

SWOT Analysis

Difficulty

easy level question

Cognitive Level

understand

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