CMN 4105 Lecture Notes - Lecture 2: Competitor Analysis, Environment Variable, Disposable And Discretionary Income
12 Apr 2016
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Chapter 2- the external environment: opportunities, threats, industry competition, and competitor. Viewed in their totality, the conditions that affect firms today indicate that for most organizations, their external environment is filled with uncertainty. To successfully deal with this uncertainty and to achieve strategic competitiveness and thrive, firms must be aware of and fully understand the different segments of the external environment. A firms strategic actions are influenced by the conditions in the three parts (the general, industry, and competitor) of its external environment (see figure 2. 1 page 37) The general environment is composed of dimensions in the broader society that influence an industry and the firms within it. We group these dimensions into 7 environmental segments: demographic, economic, political/legal, sociocultural, technological, global and physical. How companies gather and interpret information about their competitors is called competitor analysis. Understanding the firm"s competitor environment complements the insights provided by studying the general and industry environments.
