2.1.6 Summary

The external environment consists of manifold forces to which your company is exposed. Key forces of the external environment are customers, suppliers, competitors, the labour market, synergies and technology.

All of them can have a major impact on your company.

Customers are the central stakeholders, and hence you should engage in a detailed analysis of them.
The analysis of a single competitor is especially important for companies, which have only one or just a few competitors in its business segment.

Suppliers influence the profitability of a sector, as they sell products and services that are used as input for the value creation process of a sector. For that reason the analysis of their bargaining power is very important.

Your employees and technology are some of the most important resources of your company. The bargaining power of each individual employee or job seeker depends on the labour market situation and the costs associated with releasing an employee. In your company, technology is used not only in production, but also for communication, logistics as well as several other areas.