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EXTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT. INDUSTRY, MARKETS COMPETITION ECONOMY LEGAL, POLITICAL, SOCIAL. INDUSTRY, MARKETS. CUSTOMER/CONSUMER WHO WHERE (AREA, COUNTRY) WANTS, NEEDS BUYING BEHAVIOR BUYER POWER RELATIONSHIPS/ALLIANCES. INDUSTRY, MARKETS (CONT’D). MARKET SIZE, TRENDS SUBSTITUTES

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EXTERNAL ENVIRONMENT

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  1. EXTERNAL ENVIRONMENT • INDUSTRY, MARKETS • COMPETITION • ECONOMY • LEGAL, POLITICAL, SOCIAL

  2. INDUSTRY, MARKETS • CUSTOMER/CONSUMER • WHO • WHERE (AREA, COUNTRY) • WANTS, NEEDS • BUYING BEHAVIOR • BUYER • POWER • RELATIONSHIPS/ALLIANCES

  3. INDUSTRY, MARKETS (CONT’D) • MARKET SIZE, TRENDS • SUBSTITUTES • DISTRIBUTION SYSTEM • STAGE, PRODUCT LIFE CYCLE

  4. INDUSTRY, MARKETS (CONT’D) • STAGE, INDUSTRY LIFE CYCLE • TECHNOLOGY AS THE PRODUCT • SUPPLIERS • POWER • RELATIONSHIPS/ALLIANCES

  5. COMPETITION • NATURE OF • WHO, WHERE • STRATEGY • ADVANTAGES - SUSTAINABLE • DISADVANTAGES

  6. COMPETITION (CONT’D) • RIVALRY • ENTRANTS, EXITS • SUBSTITUTES

  7. LEGAL, POLITICAL, SOCIAL • LAWS, REGULATIONS • VARY BY MARKET • VARY BY COUNTRY • ETHICS • TRENDS • IMPORT/EXPORT LAWS

  8. ECONOMY • EFFECTS ON DEMAND • EXCHANGE RATES • EMPLOYMENT RATES • INFLATION • STABILITY

  9. KEY SUCCESS FACTORS “ABSOLUTE” REQUIREMENTS Airlines: low unit cost Air delivery: worldwide dist.

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