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STR 581 Week 3 External and Internal Environmental Analysis VIZIO Inc






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STR 581 Week 3
External and Internal Environmental Analysis
External and Internal Environmental Analysis
“VIZIO, Inc. was founded in 2002 by William Wang with the idea that everyone
deserves to own the latest technology”, VIZIO started out providing consulting
services for Gateway computers with three employees, today there are over 160
employees, do to outsourcing a majority of the work. VIZIO is “still hard at
work taking entertainment freedom by storm”, through adding computers,
tablets, and Apps (VIZIO, 2012 para.1).
There are various external issues that can persuade VIZIO to make the high-
quality decisions in order to select a course of action, which will have an effect
on the company’s internal structure. The external environment factors are
influenced by one another they are: remote, industry, and operating
environment. In a competition situation, these unified features summarize the
core of the prospects and threats that VIZIO confronts.
In order to track marketing prospects, VIZIO inc. should in addition be
conscious of its own internal assets, qualifications, and skills. A method
commonly applied by administrators or supervisors is the SWOT analysis
denotes the internal Strengths and Weaknesses of an individual business and the
environmental opportunities and threats a business confronts. This advance
assists managers to consider VIZIO’s internal capabilities, while making use of
the findings to enhance the strategic alternatives.
Internal Environment
VIZIO has various advantages compared to their competition in comprehending
and meeting the wants and desires of their customers. VIZIO’s numerous
features of their products that continue to increase the values of their products
and services, while continuing to build the companies internal strengths.

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• Cost advantage
• Effective communication
• Loyal customers
• Market share leadership
• Reputation management
• Low market share
• Poor supply chain
External Environment
The external environment involves three factors: industry, operating, and remote
environment. The industry environment is the wide-ranging provisions for
opposition which impacts every business that provides comparable products and
services (Pearce and Robinson, 2011). Since Toshiba and Samsung provide
similar products and services; they are a competitive threat for VIZIO and an
industry concern. Along with Toshiba and Samsung, in addition, the operating
environment, also known as the competitive or task environment, including
influences in the competitive position that have an effect on a companies
success in obtaining needed assets or in beneficially promoting and selling their
products and services (Pearce and Robinson, 2011).
The operating environment factors are: competitive position, customer profiles,
suppliers, creditors and the labor market. VIZIO’s operating issues are the base
of commercials, the design of the commercials, reduction of
advertisement resources of customers, and more influence on the baby boomer
generation in assessment of other businesses that do not rely on this
demographic group. Moreover, the remote environment consists of: economic,
social, political, technological, and ecological factors. Economically, even in a
period of recession VIZIO is in a good position. VIZIO’s focuses on vastly
objectives, considerable advertising creates an extra protection from an
economy decline than many other companies in technology.
Socially, VIZIO makes purchasing computers, flat screen televisions, and
tablets easier through the internet as many individuals can navigate the internet
to compare prices has increased amongst every age group and all ethnicities;

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and while becoming progressively more reliant on internet searches. In the
competitive environment, these unified factors summarize the core of the
opportunities and threats that VIZIO faces.
Asset leverage
• Financial markets
• Emerging markets and expansion abroad
• Expanding Products and services
• Takeovers
• Competition
An advantage for VIZIO would be to merge with mass-market portal since this
will aid in securing its users and marketers though it is not recommended for
due to the disadvantage of harming its independent growth. With this being said,
VIZIO has great technology and an administrative team that characterize
roughly the most experienced technology specialist in the business and they use
this to their advantage in providing users with feasibility in search option. In
conclusion, VIZIO should focus on continuously updating the technology and
services and should meet their users expectancy in order to provide the best
electronic devices at the most affordable prices.

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