EXTERNAL ENVIRONMENT
A. Societal Environment
1. Economic
? Strong competition among internet providers ? not able to increase prices(O/T)
? Growing markets, Stage II development for Internet service with Broadband, Cable and DSL(O)
? Business growth, product and service usage (cable, internet, media)(O)
? September 11th disaster(O/T)
? The ?burst' of the Internet bubble(T)
? Corporations' accounting issues(T)
? Slowdown of the economy(O/T)
2. Technological
? Changes in technology ? Implementing change of services provided from dialup to broadband can be expensive and require extensive capital resources.(O/T)
3. Political-Legal
? FCC changes and rulings in broadband regulation(O/T)
? Lobbying against broadband service providers(O)
? Cable industry ? Regulation vs. Deregulation(O/T)
4. Sociocultural
? "Environmentally friendly products ? intangible services(O)
? Demographic changes from specific niche markets to diversified target areas(O)
? Low end services, low consideration for purchase decision making(T)
? Necessity of service for home considered high (internet access, cable) (O)
B. Task Environment
1. Threat of new entrants: Medium
? Internet ? a small investment is all that is required for a start up company to operate its own ISP and provide E-commerce solutions.
2. Bargaining power of buyers: High
? Ability to choose substitutes
? Subscriber preferences
3. Threat of substitute products: High
? Same product, different brand, close quality, and lower cost.
? Cable modems ? similar high speed service, strong, reliable reputation already being established for service
4. Bargaining power of suppliers: Medium
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