Threat

An external negative factor beyond a business's control that may harm it.

Named examples include natural disasters, rising input costs, regulatory change that runs against the business, and disruptive innovation that fundamentally alters how customers meet their needs.

Often confused with

Risk (business decisions): A threat is a specific external factor; risk is the general possibility of an unfavorable outcome from any source.
Weakness: A threat comes from outside and cannot be fixed internally; a weakness is inside the business and can.

Taught in

4.4 Strategic Frameworks: Porter’s Five Forces and SWOT Analysis

Threat

Often confused with

Taught in

See also