Chapter 3 - The External Environment Describe what does your firm do; what is your product or service? ; be sure to explain its position on the product value chain (i.e., is in manufacturing, wholesale, retail, etc.). >> from here on, you'll be discussing your industry [NOT your specific firm, unless specified]! Define the industry your company operates in (remember, this requires a Product Value Chain (PVCh) location/position and Scope definition!). Who are your suppliers, rivals, and buyers? (Note that the PVCh is not the same as the value chain activities described in ch. 4!) What is your chosen scope? Who are the rivals, the substitutes? Which element of the general environment (PESTEL) is the most threatening to your company/product? How easy is it to enter into your industry? Why? (Use Porter's model items.) Evaluate the power of the industry buyers. (Use Porter's model items.) What could be possible substitutes to your product? What is their power? (Use Porter's model items.)