What assures a company can defend against external threats?

The correct answer highlights the importance of effectively aligning a company's internal strengths with external opportunities. This alignment enables a company to leverage its unique resources and capabilities to capitalize on market trends, emerging technologies, or changing consumer preferences. By identifying and utilizing these strengths in relation to external opportunities, the company can position itself competitively, not only adapting to market changes but also preemptively defending against external threats.

A well-aligned strategy allows the company to identify potential risks and respond adequately, thereby creating a sustainable competitive advantage. This proactive stance is crucial for long-term resilience and profitability in a dynamic business environment.

In contrast, lacking distinct competencies would limit a company's ability to compete effectively. A singular focus on having a strong market presence without backing it up with robust internal capabilities would not be sufficient for defending against threats. Finally, solely employing cost-cutting measures can undermine a company’s overall value proposition and may hinder its ability to innovate or respond to shifting market dynamics, further compromising its competitive position.