In a SWOT analysis, what would a competitor's product launch be categorized as?

In a SWOT analysis, identifying a competitor’s product launch as a threat is appropriate because it represents an external factor that could negatively impact your business. When a competitor introduces a new product, it can potentially attract customers away from your offerings, increase competition in the marketplace, and alter consumer preferences. This can lead to a loss of market share or decreased sales for your company, making it essential to recognize such developments as threats to your strategic position.

Understanding competitors’ actions helps organizations to assess their own strategies, plan for potential challenges, and explore ways to differentiate their products or services. Companies often need to respond proactively to these threats by enhancing their own offerings, improving customer service, or perhaps speeding up innovation to maintain their competitive edge. Such proactive measures are crucial in adapting to changing market dynamics prompted by competitors' movements.