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The External Environment: Opportunities, Threats, and Competitor Analysis

The document discusses analyzing a company's external environment. It covers scanning, monitoring, forecasting, and assessing the general, industry, and competitive environments. The general environment includes socio-cultural, economic, political/legal, technological, global, and demographic factors. Industry analysis examines the threat of new entrants, power of suppliers/buyers, substitutes, and rivalry. Competitor analysis focuses on objectives, strategies, assumptions, and capabilities. Continuous external environmental analysis is important for strategic planning.

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Atima Hooda
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50 views17 pages

The External Environment: Opportunities, Threats, and Competitor Analysis

The document discusses analyzing a company's external environment. It covers scanning, monitoring, forecasting, and assessing the general, industry, and competitive environments. The general environment includes socio-cultural, economic, political/legal, technological, global, and demographic factors. Industry analysis examines the threat of new entrants, power of suppliers/buyers, substitutes, and rivalry. Competitor analysis focuses on objectives, strategies, assumptions, and capabilities. Continuous external environmental analysis is important for strategic planning.

Uploaded by

Atima Hooda
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The External Environment: Opportunities, Threats, and Competitor Analysis

Strategic Inputs

The External Environment Strategic Intent Strategic Mission The Internal Environment

The Strategic Management Process


Strategy Implementation
Corporate Governance Organizational Structure and Controls

Strategy Formulation
Strategic Actions

Competitive Rivalry Business-Level and Competitive Strategy Dynamics

CorporateLevel Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Strategic Leadership

Strategic Entrepreneurship

Strategic Outcomes

Strategic Competitiveness Above-Average Returns

Feedback

The External Environment


Environment
Socio cultural
Industry Environment Threat of new entrants Power of suppliers Power of buyers Product substitutes Intensity of rivalry Competitor Environment

Technological

General

External Environmental Analysis


A continuous process which includes

Scanning: Identifying early signals of environmental changes and trends Monitoring: Detecting meaning through ongoing observations of environmental changes and trends Forecasting: Developing projections of anticipated outcomes based on monitored changes and trends Assessing: Determining the timing and importance of environmental changes and trends for firms strategies and their management

External Environmental Analysis


Analysis of general environment Analysis of industry environment

Analysis of competitor environment

The External Environment Strategic Intent Strategic Mission

General Environment

Socio Cultural segment


Societys Attitudes and Cultural Values Workforce Mix Quality of Life Women in the workplace Workforce diversity Attitudes about quality of worklife Concerns about environment Shifts in work and career preferences Shifts in product and service preferences

General Environment

Economic segment

Inflation rates Interest rates Trade deficits or surpluses Budget deficits or surpluses Personal savings rate Business savings rates Gross domestic product

General Environment

Political/Legal Segment

Taxation laws Deregulation philosophies Labor laws

General Environment

Technological Segment

Product innovations Applications of knowledge Focus of private and government-supported R&D expenditures New communication technologies

General Environment

Global Segment

Important political events Critical global markets Newly industrialize countries Different cultural and institutional attributes

General Environment

Demographic Segment

Population size Age structure Geographic distribution Ethnic mix Income distribution

Competitor Environment
Competitor intelligence is the ethical gathering of needed information and data about competitors objectives, strategies, assumptions, and capabilities

what drives the competitor as shown by its future objectives what the competitor is doing and can do as revealed by its current strategy What the competitor believes about itself and the industry, as shown by its assumptions What the the competitor may be able to do, as shown by its capabilities

Competitor Analysis
Future objectives

Future Objectives:

How do our goals compare with our competitors goals? Where will the emphasis be placed in the future? What is the attitude toward risk?

Competitor Analysis
Future objectives

Current Strategy:

Current strategy

How are we currently competing? Does this strategy support changes in the competitive structure?

Competitor Analysis
Future objectives

Assumptions:

Current strategy

Assumptions

Do we assume the future will be volatile? Are we operating under a status quo? What assumptions do our competitors hold about the industry and themselves?

Competitor Analysis
Future objectives

Capabilities:

Current strategy

What are our strengths and weaknesses? How do we rate compared to our competitors?

Assumptions

Capabilities

Competitor Analysis
Future objectives Response

Current strategy

Response:

Assumptions

Capabilities

What will our competitors do in the future? Where do we hold an advantage over our competitors? How will this change our relationship with our competitors?

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