Monitoring External Factors

Why Monitor External Factors?

Understanding external factors is crucial for making informed business decisions. Below are key areas you should consider monitoring. These suggestions serve as a starting point—think freely and tailor them to your company’s needs.

Key External Factors to Monitor

1. Suppliers and Partners

Keeping an eye on your suppliers and partners is as important as following competitors. Ask yourself:
– Is a key supplier being acquired or expanding?
– Are there changes in their business that could affect your organization?

Keeping up to date ensures that you are prepared for potential disruptions and challenges.

2. Policies, Laws, and Regulations

Monitor government agencies and parliamentary records, government policies and laws can have a major impact on your industry. Consider monitoring:
– Policy discussions and bills that may affect your company/organization.
– Changes in industry-specific regulations.
– Actions taken by trade unions and regulatory bodies.

3. Competitors and Market Substitutes

Understanding competitors’ strategies and potential substitutes for your product or service is crucial. Follow:
– Competitors’ strategies and market positioning.
– New substitutes that could affect your business.
– Media and online presence for competing brands.

4. Technology and Research & Development (R&D)

Technological advances can create both opportunities and threats. Keep up to date with:
– Innovations in your industry.
– Growing trends in other industries that could affect your organization.
– Breakthroughs in research and development relevant to your market.

5. Economic Trends

Economic conditions influence customer behavior and market dynamics. Monitor:
– Stock market trends and economic indicators.
– Changes in consumer purchasing power.
– Industry-specific economic forecasts.

6. Public Opinion and Social Trends

Public opinion can influence market demand and brand perception. Consider following:
– Growing social and cultural trends.
– Public discussions on key topics in your industry.
– How changing consumer attitudes can affect your business.

7. Your Own Company / Organization

It is equally important to monitor what is being said about your own company / organization. Keep an eye on:
– Brand mentions and media coverage.
– Online customer feedback and reviews.
– Discussions about your products, services or management.

8. Customers – Existing and Potential

Your customers’ behaviors and opinions provide valuable insights. Pay attention to:
– How they interact with your brand.
– What they say about your company and your competitors.
– Changes in customer needs and expectations.

9. Unexpected Insights (“Fun & More”)

Not all useful insights come from expected sources. Sometimes monitoring unexpected areas can inspire new ideas and strategies. Consider following:
– Topics close to your industry.
– Surprising trends that may affect your market.

Example: Monitoring in the Travel Industry

To illustrate how these external factors apply in practice, let’s look at the fictional travel company Flights and Far.