The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

20 terms by cameronalspaw1

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General Environment

Composed of dimensions in the broader society that influence and industry and the firms within it

Industry Environment

The set of factors that directly influences a firm and its competitive actions and competitive responses

Porter's Five Forces

The threat of new entrants, the power of suppliers, the power of buyers, the threat of substitutes, and the intensity of rivalry among competitors

Opportunity

A condition in the general environment that if exploited effectively, helps a company achieve strategic competitiveness

Threat

A condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness

Scanning

Entails the study of all segments in the general environment

Monitoring

Analysts observe environmental changes to see in an important trend is emerging from among those spotted through scanning

Forecasting

Analysts develop feasible projections of what might happen, and how quickly, as a result of the changes and trends detected through scanning and monitoring

Assessing

Determines the timing and significance of the effects of environmental changes and trends that have been identified

Demographic Segment

Concerned with a population's size, age structure, geographic distribution, ethnic mix, and income distribution

Economic Environment

Refers to the nature and direction of the economy in which a firm competes or may compete

Political/Legal Segment

The arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies

Sociocultural Segment

Concerned with a society's attitudes and cultural values

Technological Segment

Includes the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes, and materials

Global Segment

Includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets

Physical Environment Segment

Refers to potential and actual changes in the physical environment and business pracitces that are intended to positively respond to and deal with those changes

Industry

A group of firms producing products that are close substitutes

Strategic Group

A set of firms that emphasize similar strategic dimensions and use a similar strategy

Competitor Intelligence

The set of data and information the firm gathers to better understand and better anticipate competitors' objectives, strategies, assumptions, and capabilities

Complementors

Companies or networks of companies that sell complementary goods or services that are compatible with the focal firm's good or service

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