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Competition is the major external force in the business environment. However, there are many others not listed in the previous answer. The other external forces include:
- Social factors. For example, moral values affect the market for various products, making them popular in one country but not another.
- Legal. The level of government regulation impacts businesses.
- Economic. A business might be inversely affected (through no fault of its own) by a recession.
- Political. There can be political risk, for example, in trying to invest in a country with an unstable government. The government might, for example, fall and be replaced by one that is interested in nationalizing your investment.
- Technological. A change in technology can seriously affect a business. For example, companies that made film for cameras have had to adapt to a world where that is an obsolete product.
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