Market Opportunity and Industry Trends External Environment Analysis

The political, social, legal, technological and ethical factors of the organizations will be helpful in the analysis of the firms external environment.

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Legal

The organization plans to enter new markets and there may be legal restrictions in the new markets which may limit the firm from normal and successful operations

Political

The target markets are politically stable hence and hence the firm is safe to operate in them without fear of any wars or other forms of political instabilities.

Technology

The firm has various innovations in the information systems business that are unique in the market which have made the firm be ahead of its competitors.

There is a rapid advancement of technology in the world that has highly contributed to the success of the firm which is using technology in its operations.

Ethical

The firm has competitors in the market who may poach the best skilled personnel.

The competitors may use the firms strategies to make similar products and services to attract the customers.

Porters 5 forces

The Porters five force tool is used to analyze business power in the form of its strength to face competition and to determine how strong it can survive in the environment it is operating in.

Buyers bargaining power

The firm is a competitive information systems company. It has managed to have a big market share and it has also maintained its brand loyalty in the market. It therefore has a better position of bargaining from its suppliers because it is a big firm.

There is high competition in the market and the firm has a range of suppliers hence manages to negotiate on prices.

Competitive rivalry

The firm has a competitive advantage where it has ensured it achieves customer satisfaction.

Its products are also discounted especially to big purchasers thus offering competitive prices in the market.

Suppliers bargaining power

The firm seems to have debt with some suppliers. It may limit the firm from sourcing from other suppliers which means the firm may keep on purchasing from these suppliers even when the suppliers have higher prices than other in the market.

Threats of substitutes

The market has a high competition and competitors are offering similar products. Some offer them at lower prices which make customers to run for their products and services.

Threat of new entrants

The market is receiving new companies hence making it a competitive market to operate in because there are limited restrictions to enter the market as a new firm.

Primary drivers of competitive dynamics

They are the ongoing responses and actions across all businesses competing to earn an advantageous market position.

Awareness

The firm has stiff competition in the information systems market and it is aware of the products the consumers want and have high sales and have strived to offer similar products.

Motivation

The firm has ensured it offers its customers top notch services and discounts on purchases which motivates them to make more purchases.

The firms personnel are motivated through promotions and incentives that lead to better job performance.

Innovation

The firm is coming up with new strategies for the competitive market that have made it retain its position at the top of the market.

Industry attractiveness analysis

It defines the degree and ease of the corporation making a profit in the midst of all the risks involved in the industrial segment.

The firm has an opportunity to expand its services to new regions and markets globally if it offers unique and cost-effective services.

There is rapid technological advancement which is a factor to the growth of the firm hence if embraced; the technology will enable the firm to grow as well.

The competition in the market is high thus indicating the need of frequent review of strategies to ensure the strategies of the firm are unique and will make the firm retain its position in the market and manage to enter new markets successfully.

The costs of the firm will go down after the learning curve whenever a new SBU is created hence the firm will cut its costs in the long run and use the money to support other operations.