3. Nvidia 7 Segments Environmental Analysis
The company for this discussion is Nvidia Corporation, a publicly traded multinational technological corporation based in America. Since its inception in April 1993, the company has remained relentless in the industry, championing quality to help meet the growing customer demand (Teske, 2018). The corporation has been able to venture into the global platform, thanks to both its internal and external environments that support growth. Some of the external environment strategies used by the company are analyzed.
- Demographic Segment
- Economic Segment
- Political or legal Segment
- Socio-cultural Segment
- Technological Segment
- Global Segment
- Sustainable Physical Environment Segment
Demographic segment are characterized by uncontrollable but very vital factors that Nvidia must take or analyze when making serious business strategies. The first external demographic element is the age structure which serves as the company’s target market (Sharma, Kaur, & Syan, 2021). Therefore, Nvidia must analyze the age of the target population to help cope with the demands of the millennials in their inventions. Another aspect of demographics is the income distribution of the target market to assure the company of product affordability.
The first main element for consideration here is the inflation rate which is a significant factor in establishing a target market’s economic stability for Nvidia to effectively price their products. The next element of the economic segment that Nvidia must analyze is the personal savings rate of the target market which is an indicator of surplus income hence the high purchasing power of Nvidia products. Growth in the economy is an indication of more opportunities and or employments which is effective for Nvidia Corporation as it ensures a ready market.
Being an international corporation, Nvidia has continued to venture into other global markets, and therefore, having political stability in the target country would mean a stable economy which in turn creates a conducive environment to venture into (Sharma et al., 2021). Such elements as taxation laws are very crucial for Nvidia’s consideration when making certain business decisions, including globalization strategy.
Due to the relentless technological advancements in which Nvidia operates, elements such as workforce diversity must be inclusive enough for the corporation to ensure quality service in the competitive industry. Lifestyle is also a very important external environment (Aker & Aghaei, 2019), that Nvidia has no control over but must use to strategize and for decision-making.
Technological innovation is one critical element of this segment and Nvidia must apply technology to stimulate growth and business sustainability. Another element is the rapid technological change and risk of disruption which is a major industry’s success determinant hence Nvidia must constantly analyze the change to ensure sustainability.
External environment elements of this segment such as the important political event such as national election are factors that corporations such as Nvidia must critically consider as they play a major role in market stability for the company. Nvidia also takes a closer consideration of critical global markets which the corporation does not have control over but significantly affects the market stability of Nvidia products.
Emerging Trends in the technological industry are elements that affect Nvidia Corporation directly being a technology company, but the company has no control over hence the company must stay ahead and embrace any trends to ensure sustainability. Producing environmentally friendly products is also a factor that Nvidia has no control over since they cannot define or control the materials, they use for producing their products. Therefore, Nvidia must ensure the production of environmentally friendly products but has no control over this as an external factor.
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