Question

In doing SWOT analysis and trying to identify a company's market opportunities, which of the following is not an example of a potential market opportunity that a company may have?

A. Serving additional customer groups or market segments
B. Growing buyer preferences for substitutes for the industry's product
C. Acquiring rival firms or companies with attractive technological expertise or capabilities
D. Expanding into new geographic markets
E. Openings to win market share away from rivals

Answer 1

Expanding into new geographic markets is a potential market opportunity for companies in SWOT analysis. Option B, growing buyer preferences for substitutes, is not an example of a potential market opportunity.

Step-by-step explanation:

An example of a potential market opportunity that a company may have in SWOT analysis is expanding into new geographic markets. This means entering new geographical areas where the company doesn't currently operate. By expanding into new markets, the company can tap into new customer bases and increase its market share. This can be done by opening new branches or locations, or even entering international markets.

Examples of successful companies expanding into new markets include McDonald's, which has expanded globally, and Apple, which entered new markets with its iPhone.

The correct option that is not an example of a potential market opportunity is option B: Growing buyer preferences for substitutes for the industry's product. This option describes a threat rather than an opportunity. If buyers are showing a preference for substitute products, it means they are less likely to choose the company's product, which can negatively impact sales.