Adobe - Key External forces

There are 5 key external forces that can be used to identify  opportunities and threats for a firm. An objective external audit can appropriately identify and categorize these for a firm so that they know what approach to take from an offensive or defensive stance to remain competitive. Specific to Adobe, these key external forces are outlined below. 

Economic factors

Many of Adobe’s services are provided by either one-time sales or subscriptions so economic variation such as inflation could be a risk to sales and subscriptions. Fortunately for Adobe, they are a very large contender in the market and appeal not only to individual consumers but businesses as well.

Social, cultural, demographic, and natural environment forces

These factors have recently become more persuasive and come with a lot of momentum. Adobe continues to contribute to sustainability efforts by operating more efficiently as a company and offering products to customers that “help to reduce waste and cut emissions from transportation and shipping.” In addition to the sustainability efforts, 21-year run on the Fortune 100 list, and promoting diversity, equity, and inclusion, Adobe offers a broad spectrum of reliable products for businesses, education, and even mobile devices.

Political, governmental, and legal forces

As such a large provider of digital technology, the industry has a significant amount of regulation that gives users certain permissions on how they may use it but also must cover a broad spectrum of internal controls for many companies that utilize Adobe’s products. Products and technology continue to advance at a rapid rate which will lead to regulations and political influence for many technology firms.

Technological forces

Fortunately for Adobe, they operate in a highly concentrated portion of the technology market. This means that on one hand, they are well positioned to continue to offer highly desired and well-established products. Barriers of entry for smaller or up and coming firms are quite high. Because advancements continue to be made every day, the possibility still exists that another product may enter the market that could stand to dominate or at least heavily compete.

Competitive forces

Adobe has been able to rise to the top as a reputable business with outstanding and widely used products. While this is great news for them right now, large competitors such as Google and Microsoft, have entered portions of the market and are directly competing with them. Being aware of what options and features the other firms have to offer is necessary to ensure to maintain a competitive advantage. Knowing their strengths and weaknesses and striving to drive market share is critical to remain competitive. Staying abreast of new technologies and advancements will also be critical so Adobe can capitalize on it before an up and coming firm secures this brand new technology and wedges their way into the market share.