Cameron

Week 1

COLLAPSE

Two firms that are competitors in the technology industry is Samsung and Apple. Both of these firms have made strategic trade-offs with Apple opting to strive more towards loyalty and branding, while Samsung strives more towards the best performance metrics, whether it is camera quality, battery life, or RAM. Apple users tend to buy only Apple products, which is why they have created watches, computer, tablets, and phones that are all connected using their very own operating system. The decisions that these companies have made lead to their developing goals and will lead their vision in the future.

The automobile industry is under intense competition. I'm sure not having access to chips would not have been in a scenario analysis 3 years ago. But if anyone was prepared for that shortage, then they would be way ahead of the competition. Scenario analysis can be used especially when it comes to electric cars vs. internal combustion engines. For example, Tesla has had a vision for electric cars for years, and if this is the way the world wants to move going forward, then they will have a huge advantage over the rest of the competition. Identifying possible energy price hikes or even better access to renewable energy would be two very different scenarios for Tesla, and both scenarios wil impact their sales dramatically.

It is important to understand the external environment because those factors can directly influence the firm. Whether this is a positive or negative effect, the environment can help or hinder your goal of gaining a competitive advantage. Becoming familiar with the external environment allows businesses to minimize risk and seek out opportunities. Macroeconomic factors will have more of an impact on the industry rather than a single company, but it is still important to use the PESTEL model.

Respond to the information above in second person p.o.v (thorough response). Just respond with what you agree or disagree, or even what you want to add on to: