Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased competition in the market
B
A strong brand reputation
C
High customer loyalty
D
Innovative product development
Understanding the Answer
Let's break down why this is correct
Answer
A threat in a SWOT analysis is something outside the company that could hurt its performance, like a new competitor that offers cheaper products. This kind of danger comes from the external environment and can reduce sales or market share. For example, if a tech firm sees a start‑up release a similar app at half the price, that start‑up is a threat. Identifying such threats helps the company plan strategies to stay competitive.
Detailed Explanation
More rivals in the market can cut a company’s share of sales and lower profits. Other options are incorrect because A strong brand reputation is actually a strength, not a threat; High customer loyalty is a strength because loyal buyers keep buying.
Key Concepts
Threats
Topic
SWOT Analysis
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1In a SWOT analysis, which of the following is an example of a threat that a company may face in its external environment?
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Question 2In a SWOT analysis, which of the following threats can significantly impact a company's resource allocation decisions?
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3
Question 3In conducting a SWOT analysis, which of the following best describes how a company's strengths can be leveraged in its action plan when considering external factors?
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Question 4In a SWOT analysis, which of the following best describes the role of identifying 'Threats'?
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Question 5In a SWOT analysis, which of the following is an example of a threat that a company may face in its external environment?
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Question 6In a SWOT analysis, which of the following threats can significantly impact a company's resource allocation decisions?
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Question 7In conducting a SWOT analysis, which of the following best describes how a company's strengths can be leveraged in its action plan when considering external factors?
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Question 8In a SWOT analysis, which of the following best describes the role of identifying 'Threats'?
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Question 9In a SWOT analysis, which of the following threats can significantly impact a company's resource allocation decisions?
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Question 10In a SWOT analysis, which of the following best describes the role of identifying 'Threats'?
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