Environmental analysis (sometimes referred to as “environmental scanning”) is the analysis of factors in the larger competitive context that are currently affecting, or may in the future influence, the nature of competition within an industry.
Strategists should also pay attention to trends in the political and regulatory environment, as such factors can also impact a firm’s prospects in a substantial way. Government regulation and other forms of market intervention can directly affect a firm’s operations and strategic options, and therefore should be carefully considered when formulating and implementing a firm’s strategy.
Many tacit influences that can arise from geographic differences, cultural trends, and social norms.
1. Demographic trends
2. Socio-cultural influences:
3. Technological developments
4. Macroeconomic impacts
5. Political-legal pressures
6. Global trade issues: