EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT

Third lecture

Alhamdulillah we were study for chapter three about Evaluating a Company's External Envioronment. We learn about PESTEL analysis. It's focuses on the six principal components of strategic significance in the macroenvironment, that are:

• Political factors
• Economic conditions (local to world wide)
• Sociocultural forces
• Technological factors
• Environmental factors (the natural environment)
• Legal or regulatory conditions

Then, the industry have five competitive forces:

• competition from rival sellers 
• competition from potential new entrants
• competition from producers of substitute products
• supplier bargaining power
• customer bargaining power

Next, we learn about strategic group mapping,which is a valuable tool for understanding the similarities, differences, strengths and weaknesses inherent in the market positions of rival companies. The lesson of strategic group mapping is that some positions on the map are more favorable than other. 

         Otherwise, for the industry's key success factors (KFS) are the strategy elements, product and service attributes, operational approaches, resources, and competitive capabilities that are necessary for are necessary for competitive success by any and all firms in an industry. Other then, vary from industry to industry, and over time within the same industry, and in importance as drivers of chance and competitive change.