Expansion in domestic and internal market.
Offer new products and services in the market.
Diversification
External Threats
These are the external factors which may harm the company in long run. However, the impact of threats can be minimized to some extent by using the company internal strengths and capitalizing on the opportunities.
What are the examples of External Threats?
Following are the example of threats but not limited to:
Intense competition
Low industry growth
Many new entrants in the market
High taxes and interest rates
Government regulation
Security conditions
Weak economy due to high inflation
Rapid change in technology.
Opportunities and Threats are Uncontrollable
Opportunities and threats are the external factors which are dynamic and uncertain, therefore a company will has limited control over it. It is important to understand that there would be some factors present in the external enviroment but unidentified during the strategy formulation phase.
Tools or methods to identify Opportunities and Threats
EFF (External factor evaluation) matrix SWOT and TWOS analysis are commonly used tools or methods for the external enviroment analysis. However, the accuracy of these tools or methods is still a big question mark.