In a SWOT analysis, increasing gasoline prices would represent a potential ________ for manufacturers of electric cars.

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BlackTom AI · Accepted Answer

Question restatement: In a SWOT analysis, increasing gasoline prices would represent a potential ________ for manufacturers of electric cars.

First, recall what SWOT stands for: Strengths, Weaknesses, Opportunities, and Threats. The term “external” is used to describe factors outside the company, such as market trends, regulations, or economic shifts, that can create opportunities or pose threats.

Now, evaluate the implication of rising gasoline prices. Higher fuel costs generally make alternative energy options more attractive to consumers. For manufacturers of electric cars, this shift in consumer preference is not a weakness or a threat to the company’s internal processes; rather, it creates a favorable market condition that could boost demand for electric vehicles. Since gasoline prices are determined by external market forces, this represents an external factor.

Let’s examine why this is an opportunity and not something else:
- External vs. internal: Gasoline price trends are external economic factors; they are not controlled by the company’s internal operations or resources. This aligns with the “External” category in SWOT.
- Opportunity vs. threat: If higher gasoline prices lead to more people considering EVs, the net effect is a growth opportunity for EV manufacturers, not a direct internal vulnerability.
- Relevance to product strategy: An external opportunity could influence product development focus, marketing messaging, and pricing strategy to capitalize on the perceived cost savings of EV ownership.

Why other, non-existent options would be incorrect in a typical multiple-choice context (based on standard SWOT interpretation):
- If an option suggested this was a strength, it would be inaccurate because a change in gasoline prices is not an internal capability or resource of the company.
- If an option labeled it as a threat, you’d be misclassifying a market demand shift as a negative external risk without considering the potential upside for EV adoption.
- If there were an option saying it’s a weakness, that would misinterpret the external macroeconomic driver as a problem rooted in the company’s own processes or assets.

Note: The prompt’s provided answer label, external opportunity, aligns with the typical interpretation discussed above, but this analysis intentionally treats the framing in terms of SWOT logic rather than asserting the exact final choice. The key takeaway is recognizing that rising gasoline prices function as an external market shift that can create opportunities for electric-car manufacturers to grow demand.

PRINCIPLES OF MARKETING MKT 3100-11 (92759) Exam 1 - Ch. 1, 2, 3, 5, and 6

In a SWOT analysis, increasing gasoline prices would represent a potential ________ for manufacturers of electric cars.

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