The study of the external environment will not complete without thorough analysis of competitors and competitive arena. Be sure you know who your competitors are. They are the people that your business employees struggled daily to win the business.They are the ones the company intended to entice customers to the best of you. Of course you know who they are, but you know about them, about the strengths and weaknesses of them more? Are you aware of the competitive arena are wake? And do you anticipate competition will emerge in the future?Some of the competitive arena is relatively quiet, especially in the field of business is ripe and have to invest more capital. Before the 1970s, the steel industry can be viewed as a static industry. Only a few large competitors slipping combat, each person is trying to lower the cost of production by product unit and captured a larger share of the market on the disadvantage of the opponents. The industry is more vibrant, such as the entertainment industry. Twenty years ago, the American people can only see three or four network television station, a tv station coverage in the country, a few local stations, along with the theater and live performances. Today, television viewers could still see the channel coverage, but they still can reach the hundreds of cable channels. The theatre is still there, but there are thousands of films through VHS, DVD, cable, and the movie score. Because the entertainment is very easy to be replaced should the suppliers are thinking by putting the question: "which strategy will help us to collect more profits in this vibrant market? And what is about to happen will make our products obsolete? "
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