The document discusses various external influences on businesses including new technologies, social attitudes, and market forces. New technologies can create new business opportunities or substitutes that disrupt existing markets. Social attitudes are changing regarding issues like social class, lifestyles, and environmental concerns. External factors like income distribution, foreign competition, and productivity advances can also impact businesses and their strategies.
The aim of this slide is to demonstrate that companies with a core skill are able to use that knowledge to apply to a range of associated products. But, how far should a company extend itself into other products using similar but not exact technologies? DVD players, Discmans, etc. all utilise similar types of technology but a company like Canon may decide to steer clear of them because it is not their core skill – many businesses are re-focusing on what they are good at rather than trying to spread themselves too far. This is becoming even more relevant as the boundaries between technologies become ever more blurred and micro processors are used to control or execute so many products, e.g. the intelligent fridge! Many years ago cameras did not have micro-chips in them, Canon have had to acquire an understanding of that technology to keep ahead in the field of photographic equipment and now even more so with digital cameras.
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