What is an example of a threat in a SWOT analysis?

In a SWOT analysis, threats are external factors that can hinder an organization's performance or success. Emerging competitors in the market represent a significant threat as they can impact market share and customer loyalty. When new competitors enter the market, they may introduce innovative products or services, undercut prices, or implement effective marketing strategies that challenge the established business. This can lead to increased competition, which often forces existing businesses to adapt quickly to retain customers and maintain profitability.

Conversely, strong customer loyalty, efficient operational processes, and an experienced management team are considered strengths in a SWOT analysis. These factors contribute positively to a business's stability and success, making them assets rather than threats. Understanding threats like emerging competitors allows organizations to develop strategies to mitigate risk and maintain competitive advantage.