In 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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Increased competition in the market

A strong brand reputation

High customer loyalty

Innovative product development

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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.

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Competition from other companies can take customers away and push prices down. Other options are incorrect because Strong brand reputation is usually a strength, not a threat; High customer loyalty is a protective factor, not a threat.

Key Concepts

Threats

Topic

SWOT Analysis

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easy level question

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understand

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