What are company threats?

In the business field, the concept of threats refers to adverse or negative situations from outside that organizations face. Many of the threats are situations originated by the emergence of new competitors or as a result of the socio-political context.

Threats are a part of the analysis SWOT, which also includes the weaknesses, strengths and business opportunities.

Examples of business threats

There are certain threatening situations that cannot be controlled by the organization. Among them are:

  • Increase in sales of substitute items.
  • Entry of new competitors.
  • Changes in the tastes and needs of customers.
  • Very slow market growth.
  • Adverse demographic changes.
  • Changes in the commercial policies of other territories.
  • Increase in the bargaining power of Suppliers and customers.

To face the threats of a company, the solution is to create a new business strategy or redirect the existing one. As far as possible, try to get ahead of them.

The threats of a company are related to a series of aspects that are alien to it, such as the emergence of a similar item at a lower price, the drop in sales of a specific product, etc. When detecting the threat, you must consider whether the company will be able to face the problems and study in detail the competition to notice his performance. Sometimes this threat can lead to the closure of the activity.

Therefore, by way of conclusion, the definition of threat describes the external factors that put the survival of an entity at risk. If these threats are detected in time, they can be avoided or even transformed into opportunities.

Among other things, questions such as 'What obstacles does the company face?', 'What is the competition doing?', 'Are there capital resource problems?' or 'Is it possible that any of the threats endanger your activity?'

All the information about SWOT analysis

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