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Multiple Choice

Which term describes disadvantages relative to other firms?

Disadvantages relative to other firms come from internal factors where the business is at a disadvantage. In SWOT analysis, weaknesses are internal limitations or deficiencies that put the firm at a disadvantage compared with competitors. They contrast with strengths (internal advantages). Opportunities and threats are external factors: opportunities are favorable external conditions, threats are external risks. So the term that describes disadvantages relative to other firms is weaknesses.

Disadvantages relative to other firms come from internal factors where the business is at a disadvantage. In SWOT analysis, weaknesses are internal limitations or deficiencies that put the firm at a disadvantage compared with competitors. They contrast with strengths (internal advantages). Opportunities and threats are external factors: opportunities are favorable external conditions, threats are external risks. So the term that describes disadvantages relative to other firms is weaknesses.