External and Internal Environments Essay

1980 Words Feb 17th, 2014 8 Pages
External and Internal Environments
The survival of a corporation requires two elements: the strategic management of both its external and internal environments. The absence of either environment results in limited profitability. Whether a corporation is dealing with the growing concerns of technological changes or Internet privacy, external and internal factors will have a significant impact on day-to-day operations. Savvy corporations understand that focusing on creating and implementing a sound strategic plan produces above-average returns. Therefore, the demand to sustain a competitive advantage has caused corporations such as Metropolitan Life Insurance Company (MetLife) to focus on fully understanding its business environment.
…show more content…
When clients are satisfied with their insurance needs they are less likely to shop for other options. By understanding the threat of new entrants and their underlying causes, MetLife was able to develop and implement entry barriers to stop potential competitors. For example, because the insurance industry is super competitive, the corporation trained its employees to be highly skilled in product knowledge which attracted new clients and retained old clients. This kept corporations like AIA Group and Aflac from entering into its market and trying to sway its client’s.
With the same two (2) forces in mind, predict what the company might do to improve its ability to address these forces in the near future.
Hyper competition has changed how corporations offer and sell their products and services. By fully understanding rivalry among competing firms and threat of new entrants, upper management at MetLife will be able to predict the corporation’s future activities by proactively monitoring its external and internal environments. To completely understand its direct competition, MetLife can utilize competitive intensity to create distribution channels that are difficult to duplicate. The benefits of this will allow the corporation to use technology such as the Internet to gain information about local competition, track market data, and industry trends. As a result, MetLife will be able to lower its cost and its ability to

Related Documents