The chapter discusses about environmental scanning and the general analysis of an industry. Environmental scanning involves the aspect of collecting, monitoring as well as assessing knowledge to learn and understand modern trends in both societal and task environments. It describes who the key competitors in the business are and how effective an organization should handle them. The identification of external strategic factors is usually the ability to respond to some environmental advancement as well as the change in competition. The manner in which managers understand external strategies issues makes some companies perform better than the others. Industry analysis incorporates the ways of analyzing the whole task of the environment. The process involves evaluating key stakeholders groups such as customers and suppliers. By examining the industry, the managers learn about the threats of new intruders, kind of rivalry that exists among the firms. Powers from other related stakeholders such as government are essential to the success of the industry. Industries evolve in a series of stages. For instance, they undergo a process of growth via maturity and finally the decline. Understanding the issue of innovation grants the company confidence of taking obsession's stock. As a result, the industry can realize its profound effect on competitors, consumers, and business operations in the whole world. Also, the chapter explores the process of categorizing and grouping international industries. Industries vary all through from multi-domestic perspective to global perspectives. Furthermore, a thriving sector must focus on the strategic groups and how better they can categorize them. The chapter also denotes important success factors that are necessary to establish the matrix of an industry. Learning about competitive intelligence within the company demands collection of information from a variety of sources. As a result, managers will identify where competitive intelligence is likely to arise from. The chapter again describes how to evaluate the competitive intelligence. For instance, it provides the basic rule to follow for a successful gathering of information of an industry.
Keywords: environmental scanning, industry analysis, policies
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