External factors are things that are beyond an organization's control that influence its strategy and decision making. This includes competition, markets, customers, technological change, economic conditions, politics, regulations, social and cultural change. It is common to identify external factors as part of strategic analysis, problem solving and decision making. Several frameworks exist for achieving this such as swot analysis that categorizes external factors as threats and opportunities. The following are common types of external factors.
Barriers to Entry (new competition)
Capital (e.g. new machines)
Distribution (e.g. ecommerce)
Efficiency (e.g. energy efficiency of new vehicles)
Environment (e.g. air quality)
Factor Markets (input supply)
Fiscal Policy (government spending)
Growth Rates (industry or economy)
Information Security (threats and vulnerabilities)
Know-how (of competition)
Research & Development
Supply Chain Disruptions
This is the complete list of articles we have written about strategic analysis.
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