EXTERNAL ENVIRONMENT

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 (CONTD)

• MARKET SIZE, TRENDS
• SUBSTITUTES
• DISTRIBUTION SYSTEM
• STAGE, PRODUCT LIFE CYCLE

4
INDUSTRY, MARKETS (CONTD)

• STAGE, INDUSTRY LIFE CYCLE
• TECHNOLOGY AS THE PRODUCT
• SUPPLIERS
• POWER
• RELATIONSHIPS/ALLIANCES

5
COMPETITION

• NATURE OF
• WHO, WHERE
• STRATEGY
• ADVANTAGES - SUSTAINABLE
• DISADVANTAGES

6
COMPETITION (CONTD)

• 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.