- Businesses must consider the competitive, economic, consumer, regulatory and technological environments if they wish to succeed.
Who is the Competition?
Whatever your organization or business offers, you’ll be well-positioned to succeed, if you have a deep and broad understanding of who else provides similar offerings, or who else has different products or services that can meet the same need. If you run a car service, you’re in competition with other car and taxi services, and also with public transportation, ride sharing services, and even bicycle and vehicle-sharing companies. When analyzing your competitive landscape, think in terms of the customer need that you’re trying to meet, and list every imaginable way that this need can be addressed.
What’s Happening in the Economy?
Your external economic environment determines whether people have money to spend and how willing they are to spend it. Consumer optimism about the economy is influential in generating consumer spending, and fear of economic instability prompts them to hang onto their money. Some products and services may actually do better in an economic downturn. If your business offers an affordable staple such as food or clothing, customers may be more likely to choose it over more luxurious alternatives when times are hard.