Categories: Strategy

External Opportunities and Threats

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">Expansion in domestic and internal market&period;<&sol;p>&NewLine;<p align&equals;"justify">Offer new products and services in the market&period;<&sol;p>&NewLine;<p align&equals;"justify">Diversification <&sol;p>&NewLine;<&sol;blockquote>&NewLine;<h2 align&equals;"justify">External Threats<&sol;h2>&NewLine;<p align&equals;"justify">These are the external factors which may harm the company in long run&period; However&comma; the impact of threats can be minimized to some extent by using the company internal strengths and capitalizing on the opportunities&period; <&sol;p>&NewLine;<h3 align&equals;"justify">What are the examples of External Threats&quest;<&sol;h3>&NewLine;<p align&equals;"justify">Following are the example of threats but not limited to&colon;<&sol;p>&NewLine;<blockquote>&NewLine;<p align&equals;"justify">Intense competition<&sol;p>&NewLine;<p align&equals;"justify">Low industry growth<&sol;p>&NewLine;<p align&equals;"justify">Many new entrants in the market<&sol;p>&NewLine;<p align&equals;"justify">High taxes and interest rates<&sol;p>&NewLine;<p align&equals;"justify">Government regulation <&sol;p>&NewLine;<p align&equals;"justify">Security conditions<&sol;p>&NewLine;<p align&equals;"justify">Weak economy due to high inflation<&sol;p>&NewLine;<p align&equals;"justify">Rapid change in technology&period;<&sol;p>&NewLine;<&sol;blockquote>&NewLine;<h2 align&equals;"justify">Opportunities and Threats are Uncontrollable<&sol;h2>&NewLine;<p align&equals;"justify">Opportunities and threats are the external factors which are dynamic and uncertain&comma; therefore a company will has limited control over it&period; It is important to understand that there would be some factors present in the external enviroment but unidentified during the strategy formulation phase&period;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<h2 align&equals;"justify">Tools or methods to identify Opportunities and Threats <&sol;h2>&NewLine;<p align&equals;"justify">EFF &lpar;External factor evaluation&rpar; matrix SWOT and TWOS analysis are commonly used tools or methods for the external enviroment analysis&period; However&comma; the accuracy of these tools or methods is still a big question mark&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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