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Analysis from external factors., Daniela Dayaan Diaz Mercado IMT 8°A -…
Analysis from external factors.
General enviroment
Political factors
A good business-government relationship is essential to the economy and most importantly for the business. The government of a country intervenes in the national economy through setting policies/rules for business
Economic factors
The important economic factors for business are inflation, interest rates, and unemployment. These factors of the economy always affect the demand for products.
Technological factors
Investment decisions must be accurate in new technologies and they must be adaptable to them. Technological factors include information technology, the Internet, biotechnology, global transfer of technology and so forth.
Economic factors
The legal environment consists of laws and regulatory frameworks in a country. Business laws primarily protect companies from unfair competition and also protect consumers from unfair business practices.
Industry enviroment
Threats of new Entrances
The accentuation of uncertainty, the multiplication of interdependencies, the acceleration of change in some areas and inertia in other sectors are some variables that prevent any company from implementing actions in the present.
Intensity of Rivalry
Refers to the extent to which firms within an industry put pressure on one another and limit each other's profit potential.
Intensity of Rivalry
A substitute product is a product from another industry that offers similar benefits to the consumer as the product produced by the firms within the industry.
Buyers Power
Buyer power refers to a customer's ability to reduce prices, improve quality, or “generally play industry participants off one another.”
Daniela Dayaan Diaz Mercado IMT 8°A