Identifying the Major Forces
Firms must monitor six major forces in the broad environment:
- Demographic,
- Economic,
- Political-legal
- Environmental/natural,
- Socio-cultural, and
- Technological
(see Table 3.4).
We’ll describe them separately, but remember their interactions will lead to new opportunities and threats.
For example, explosive population growth (demographic) leads to more resource depletion and pollution (natural), which leads consumers to call for more laws (political-legal), which stimulate new technological solutions and products (technological) that, if they are affordable (economic), may actually change attitudes and behavior (sociocultural)
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