Under Armour External Environments

The firm’s external environment included: General, Industry, and Competitor Environments

1. The General Environment: The broader society dimensions that indirectly influence an industry and the firms, including 7 dimensions:
Demographic, economic, political/Legal, sociocultural, technological, physical and global segments.

2. Industry Environment:
– Set of factors directly influencing a firm’s competitive actions/responses.
– Porter’s five forces analysis (No need to do this part)

HIH Chapter 2:  The External Environment
The firm’s external environment: General, Industry, and Competitor Environments
General environmental segments
Industry environment: Porter’s 5 Forces Model

It’s about choosing the right game– the profitability of a firm largely depends on the structure of the industry that it competes in.

It’s about how you manage the firm– a company can be profitable even in the worst industry, if it makes good use of its resources and capabilities.

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