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The External Environment MOS 4410

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Added on  2021-06-05

The External Environment MOS 4410

   Added on 2021-06-05

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The External EnvironmentMOS 4410Trevor HunterKing’s University College
The External Environment MOS 4410_1
Why do External Analysis?External analysis allows firms to:discover threats and opportunitiessee if above normal profits are likely in an industrybetter understand the nature of competition inan industrymake more informed strategic choices
The External Environment MOS 4410_2
FocalFirmBuyersSuppliersEntryRivalrySubstitutesComplementorsDemographicTrendsTechnologicalChangeCulturalTrendsEconomicClimateLegal/PoliticalConditionsSpecificInternationalEventsIndustryGeneral External Environment
The External Environment MOS 4410_3
DemographicTrendsTechnologicalChangeCulturalTrendsEconomicClimateLegal/PoliticalConditionsSpecificInternationalEventsGeneral External EnvironmentSmart PhonesHispanic Population Growthin the USAChanging Image of Gay MarriageRisingInterestRatesChanging Policy toward OilExploration on Public LandsChina bans Canadian CanolaImports after spat withCanadian governmentFocalFirm
The External Environment MOS 4410_4
Industry AnalysisThe Model of Environmental ThreatsFocalFirmBuyersSuppliersEntryRivalrySubstitutesIndustryThreatHigher ThreatLower Average Profits
The External Environment MOS 4410_5
Model of Environmental ThreatsEntry - Threat from New CompetitionIf the costs of entering a given industry are lowerthan the expected profits they can gain, there is ahigh threat of new competitors enteringBarriers to entry lower the threat of entry by makingentry more expensive.Barriers to entry make an industry more attractive.This is true whether the focal firm is already in the industry or thinking about entering (assuming they can efficiently enter).
The External Environment MOS 4410_6

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