Growth Potential and External Environmental Analysis Order Instructions: the rubric and template for this analysis will be attached on the order page.
Growth Potential and External Environmental Analysis Sample Answer
External Environmental Analysis
1. Social External Environmental Factors |
Opportunities:
Great growth potential Competition is becoming increasingly expensive. People are buying cars for different purposes such as taxis, public transport, private cars etc. It has the opportunity to create partners. It can decide to open several recharge stations throughout the city. It can also decide to use manufacture cars which are environmentally friendly so that they can attract customers who are now becoming environmentally conscious. |
Threats: change in people’s tastes and preferences, people are now becoming environmentally conscious and may not love to purchase cars whose batteries can affect the natural environment. |
2. Demographic External Environmental Factors |
Opportunities:
The company can decide to manufacture automobiles that suit people of different age brackets to avoid losing customers. |
Threats:
Change in consumer’s tastes and preferences, as people grow older. |
3. Economic External Environmental Factors |
Opportunities: the company can decide to have extra services to its customers so that they can beat the competition in this new market. In addition, it can use electric powered vehicles so as to be more environments friendly and avoid fuel costs. |
Threats:
Increase in fuel prices, the economic crisis can affect consumers ability to travel, competition |
4. Technological External Environmental Factors |
Opportunities:
The company should invest in producing more technological cars by having a strong team of experts in in-car technology. |
Threats:
Technology keeps on changing day in day out. Competitors are producing more technologically related cars. Customers prefer to buy cars, which are more technologically advanced which suit their own personal needs. New technology is likely to supplement their automobiles. |
5. Political and Legal External Environmental Factors |
Opportunities:
The company should familiarize itself with all the rules and regulations of the country and region to avoid issues with the government. |
Threats:
The government requires companies to produce goods, which are environmentally friendly so as to reduce pollution. Any company that fails to follow these regulations can be taken to court or even closed down. |
6. Competitive External Environmental Factors |
Opportunities:
The company has the chance to offer its services uniquely compared to competitors. It can decide to charge lower prices to attract more customers to its services and apply a price discrimination strategy to gain customers from all social classes. |
Threats: Competitors include auto Europe, Europcar, Renault Euro drive among others. All these competitors offer car rental service in Europe. |
Growth Potential and External Environmental Analysis References
Central Intelligence Agency. (2014). The world factbook. Retrieved April 22/2015, from: https://www.cia.gov/ library/publications/the-world-factbook
U.S. Census Bureau. (2013, December). International programs: International database. Retrieved April 22/2015, from http://www.census.gov/population/international/ data/idb/informationGateway.php
U.S. Department of State. (2014). Corporate Social Responsibility. Retrieved April 22/2015, from http://www.state.gov/e/eb/eppd/csr
U.S. Department of State. (2014).Regions. Retrieved from April 22/2015, from http://www.state.gov/countries