How are threats categorized in a SWOT analysis?

In a SWOT analysis, threats are recognized as factors that can negatively impact an organization’s performance or competitive position. These threats originate from external sources that lie outside the organization's control, such as changes in market trends, economic shifts, new regulations, and competitive actions.

By categorizing threats as external and unfavorable, the analysis highlights the importance of understanding the external environment in which an organization operates. This awareness allows businesses to develop strategies to mitigate these threats, capitalize on opportunities, and improve their strategic planning.

The emphasis on the external nature of threats distinguishes them from other elements of the SWOT analysis, such as strengths and weaknesses, which are internal factors. This categorization is essential for organizations to effectively navigate challenges and devise appropriate responses.