III.

External Environment: Opportunities and Threats (SWOT)

Natural physical, societal, and task environments are the key causes for change in the
motorcycle industry's external environment. An understanding of the external factors at
work among industry participants is useful in strategic planning. It also improves a
company's understanding of its relative opportunities and threats, enabling it to plan
based on its strengths and resources available.
A. Natural Physical Environment: Sustainability Issues

Fuel is one of the natural resources associated with the motorbike industry.
Customers may have to brace themselves for another wave of gasoline price
increases in the next week as global prices climb and the peso falls against the
US dollar. Local oil firms price their products on a regular basis but announce
price changes once a week. Their bulletins summarize the daily fluctuations in
fuel costs. The natural physical environment can impact the remote Viajero’s
business. The following societal external factors are important to Viajero:

 Fuel Price hike. (Threat)

 High rate inflation. (Threat)

The current natural physical environment stresses corporate sustainability. Viajero can
solve this worry via making fair offers of in-house financing and supplying fuel-efficient
motorcycles with fuel-injected engines. In order to attract clients who live low-carbon
lifestyles, the corporation might promote the environmentally friendly qualities of its
products. Here are some other examples of the forces from the natural physical
environment that can be present or future threats in Viajero Inc.
A. Climate, including global temperature, sea level, a freshwater availability
B. Weather-related events, such as severe storms, floods, and droughts
C. Solar phenomena, such as sun spots and solar wind
They are not directly affected by environmental issues but in terms of their suppliers
there are. Carbon Emissions are said to be an issue for their suppliers. Because electric
vehicles are becoming more of a trend. But this will not be an issue for VIAJERO
because they can bid on electric vehicles so that they can also be its distributors.

B. Societal Environment

Here are the forces from the societal environment that can be present or future
threats\opportunities in Viajero Inc.
 A. Economic - Inflation of Gas. As gas prices rise, consumer spending tends
to fall.

B. Technological - Internally, some systems used during the day to day

operations are outdated but to solve this our IT are developing new
efficient systems for the company to use.

C. Political–legal - The law is being more strict when it comes to the

regulation of acquiring automobiles. Without a driving license, customers
are now unable to purchase.

D. Sociocultural - Over the years, people’s lifestyle has been developing with
increased exposure to worldwide trends. The diversity peoples lifestyles
offers s possibility for modification of consumer preferences for the brands
and goods produced in the Philippine motorcycle industry loyalty to the
industry's product is steadily inclining with just a few consumers
maintaining their preferences constant. Consumers' preferences for
modern automotive technology and environmentally friendly alternatives
have shifted as a result of lifestyle changes. The societal environment can
impact the remote Viajero’s business. The following societal external
factors are important to Viajero:

 Continuing increase in demand for autonomous vehicles. (Opportunity)

 Strong brand recognition. (Opportunity)

Based on the company's location, Viajero must incorporate social concerns

during strategic planning. For example, utilizing other platforms to promote their
product and services. Maintaining high quality also increases credibility and
equality. The more frequently Viajero delivers on its promise with a strong brand
image, the simpler it will be for people to recall their brand and what it represents.

C. Task Environment

Viajero's task environment is the environment that directly influences the

organization's ability to achieve business goals. In summary, the Task
Environment is the collection of variables arising from suppliers, distributors,
consumers, stock markets, and rivals that have a direct impact on the
organization's ability to achieve its goals. The task environment can impact the
remote Viajero’s business. The following societal external factors are important to
Viajero:
  Customers from digital\online marketing. (Opportunity)
 Timing and frequency of the new model release. (Opportunity)
 Insufficient supply of in-demand motorcycle models. (Threat)
 Increased Competition (Threat)

Manufacturers, distributors, consumers, and rivals are all part of an

organization's overall ecosystem. Every firm need the other to ensure that the
greatest product is provided for the consumer, satisfying their wants while also
earning a profit. The task environment is made up of these interconnected
conditions. Here are some other examples of the forces from the task
environment that can be present or future threats in Viajero Inc.

A. Threat of new entrants - High

B. Bargaining power of buyers - Low, since the prices have been fixed
C. Threat of substitute products or services - Medium, since there are
tendencies that some customers are not going to buy from Viajero.
D. Bargaining power of suppliers - Medium, since most new models coming
from suppliers are often bid instead of having direct transactions
E. Rivalry among competing firms - High
F. Relative power of unions, governments, special interest groups, etc. - Low
G. The overall force that drives the company into the competition is its rivalry.
From gaining exclusive models from the suppliers to attracting customers
in purchasing their products. Competitors like Motor Trade and Premyo.

D. Summary of External Factors

An external environment is made up of all the outside variables or influences that

have an impact on how a firm operates. To maintain the flow of activities, the
company must act or respond. The primary drivers of change in the motorcycle
industry's external environment are natural physical, sociological, and task
contexts. Fuel price increases and high rate inflation are examples of natural
physical environments. Viajero may alleviate this concern by establishing
reasonable in-house financing options and providing fuel-efficient motorcycles
with fuel-injected engines. The social context includes a continued growth in
demand for self-driving vehicles as well as strong brand awareness. During
strategy planning, Viajero must consider societal considerations. Customers from
digital web marketing, timing and frequency of new model release, insufficient
supply of in-demand motorbike models, and increased competition are all part of
the work environment. Every company need the other to guarantee that the best
product is delivered for the consumer, meeting their desires while also generating
a profit.
References:
https://www.paperdue.com/essay/harley-davidson-external-business-environment-
191848
https://www.studocu.com/ph/document/university-of-negros-occidental-recoletos/
accountancy/pldtinc-group-strategic-audit/22816149?
fbclid=IwAR3gozMNX5Dtvs6CiWW_lZPkwdm4bGLi1kBUnhuMVhPlXpB1KZNldPX055I
https://panmore.com/harley-davidson-pestel-pestle-analysis-recommendations