In a SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats, the term "threats" refers to external factors that could potentially hinder or negatively impact the success, growth, or stability of an individual, organization, project, or endeavor. Threats are elements outside of the entity's control that could pose challenges or risks and may need to be addressed strategically. Here's a deeper exploration of threats within the context of a SWOT analysis: 1. Competitive Threats: Competition from rival organizations or businesses can threaten market share, customer loyalty, and overall performance. These threats might include the emergence of new competitors, disruptive technologies, aggressive marketing strategies, or the entry of established players into the same market. 2. Economic Threats: Economic conditions, such as recessions, inflation, currency fluctuations, or changes in consumer spending habits, can impact the financial stability and profitability of an entity. Economic threats may lead to reduced demand for products or services, decreased revenue, and financial strain. 3. Regulatory and Legal Threats: Changes in laws, regulations, or compliance requirements can create challenges for businesses, especially if they're unprepared or non-compliant. Legal threats could include lawsuits, regulatory fines, or shifts in industry standards that affect operations, product development, or market access. 4. Technological Threats: Rapid technological advancements can threaten the relevance and competitiveness of businesses that fail to keep up. Failure to adopt or adapt to new technologies could lead to obsolete products or services, reduced efficiency, or loss of market share. 5. Environmental Threats: Environmental factors such as natural disasters, climate change, or resource shortages can impact supply chains, operations, and overall business continuity. Organizations need to consider how these threats might affect their operations and develop contingency plans. 6. Social and Cultural Threats: Shifts in societal values, cultural norms, or consumer preferences can threaten the viability of products or services that are out of sync with changing trends. Negative perceptions or public backlash can also pose threats to reputation and brand image. 7. Demographic Threats: Changes in demographics, such as aging populations or shifts in target customer profiles, can affect demand for specific products or services. Failure to adapt to these changes may lead to decreased sales and market relevance. 8. Supplier or Partner Threats: Dependence on a single supplier or partner can become a threat if they face financial issues, quality problems, or disruptions in their operations. Reliance on a single source can lead to supply chain vulnerabilities.

1. External Factors
(SWOT Analysis)

2. External Factors
What happens outside of the
organization is equally as important
to the success of an organization as
internal factors.
External influences, such as
monetary policies, market changes,
and access to suppliers/ funders, are
categories to pull from to create a list
of opportunities and threats.

3. Identifying the External Factors
What trends are evident in the marketplace/ grant application space?
What demographics/communities are we not targeting?
How many competitors exist, and what is their market share/ impact
factor?
Are there new regulations that potentially could harm our operations or
products pr services?
OPPORTUNITY THREAT
THREAT
OPPORTUNITY
THERE ARE TWO TYPES OF EXTERNAL FACTORS.

4. Opportunities
Opportunities refer to favourable
external factors that could give an
organization a competitive
advantage.
For example, if a country cuts
tariffs, a car manufacturer can
export its cars into a new market,
increasing sales and market share.

5. Opportunities
They usually arise from situations
outside your organization and require
an eye to what might happen in the
future.
They might arise as developments in
the market you serve, or in the
technology you use.
Being able to spot and exploit
opportunities can make a huge
difference to your organization's ability
to compete and take the lead in your
market.

6. Threats
Threats refer to factors that have the
potential to harm an organization.
For example, a drought is a threat to a
wheat-producing company, as it may
destroy or reduce the crop yield.
Other common threats include things like
rising costs for materials, increasing
competition, tight labour supply.

7. Threats
They consist of competitive
advantages of rivals,
uncontrollable influences such as
natural disasters, governmental
policies, and more.
Identifying threats can help
expose barriers to success and
position companies to develop
strategies to overcome them.

8. How to do a SWOT Analysis
Avoid relying on your own, partial understanding of
your organization. Your assumptions could be wrong.
Instead, gather a team of people from a range of
functions and levels to build a broad and insightful
list of observations.
Then, every time you identify a Strength, Weakness,
Opportunity, or Threat, write it down in the relevant
part of the SWOT analysis grid for all to see.

9. Guiding Questions
• What technology can we use to improve
operations?
• Can we expand our core operations?
• What new market segments can we
explore?
Opportunities
• What new regulations threaten operations?
• What do our competitors do well?
• What consumer trends threaten business?
Threats

10. SWOT Analysis
Case Study

14. EXAMPLE 2

17. Mistakes in conducting SWOT
Making your lists too long. Ask yourself if your ideas are feasible as you go along.
Being vague. Be specific to provide more focus for later discussions.
Not seeing weaknesses. Be sure to ask customers and colleagues what they experience in real life.
Not thinking ahead. It's easy to come up with nice ideas without taking them through to their logical conclusion. Always
consider their practical impact.
Being unrealistic. Don't plan in detail for opportunities that don't exist yet. For example, that export market you've been
eyeing may be available at some point, but the trade negotiations to open it up could take years.
Relying on SWOT Analysis alone. SWOT Analysis is valuable. But when you use it alongside other planning tools (SOAR,
TOWS or PEST), the results will be more vigorous.

18. Bottom Line
A SWOT analysis is a great way to guide
business-strategy meetings. It's powerful
to have everyone in the room discuss
the organization's core strengths and
weaknesses, define the opportunities
and threats, and brainstorm ideas.
Oftentimes, the SWOT analysis you
envision before the session changes
throughout to reflect factors you were
unaware of and would never have
captured if not for the group’s input.