The rubric and template for this analysis will be attached on the order page.
External Environmental Analysis
- Social External Environmental Factors
Opportunities:
Great growth potential
Competition is becoming increasingly expensive. People are buying cars for different purposes
2
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 environment 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.
- 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. - Economic External Environmental Factors
Opportunities: the company can decide to have extra services to its customers so that they can
beat 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, economic crisis can affect consumers ability to travel, competition - Technological External Environmental Factors
Opportunities:
The company should invest in producing more technological cars by having a strong team of
expertise in car technology.
Threats:
3
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.
- 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:
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. - 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 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.
References
Central Intelligence Agency. (2014). The world factbook.
