[MUSIC] Hi, welcome back. Markets are complex systems composed of multiple partners. Customers, suppliers, governments, technology companies, etc., that act without any central coordination. Their actions have a direct and indirect effect on all others. These elements are in equilibrium only as long as there are no external changes that alter the market conditions. Given the interdependence between the parts, there are numerous factors that can significantly alter the market in which you operate. The rapid evolution of information and communication technology, combined with falling cost, is increasing the volume of transactions between multiple players in multiple countries. This increase in the number of speed of connections between companies is making their world more and more interdependent. Difficulties in identifying which parts are increasing their relationship and the nature of their relationships, coupled with rapid changes in the economic, political, social, technological environment creates unprecedented unpredictability in the business world. The effect can be felt in practically all markets in the form of emergence and sudden growth of some factors and or disappearance of other sectors. For example, the rapid development of technology has led to the emergence of mobile phones, tablets, and smartphones, which have rapidly changed various businesses and spawn many others. Smartphones has effectively replaced several products such as amateur cameras, alarm clocks, GPS devices, camcorders, calculators, recorder, etc. The manufacturing chains of each of these products has dramatically been altered or extinguished by the appearance of new devices that incorporate multiple functions. This is just one example of how developments in other areas and businesses can affect competitive dynamics and destroy the balance that existed for years or decades. For example, if we were in 1997 and you were part of the production chain of the amateur analog camera market, would you have been able to predict the effect of digital cameras? And then, of the smart phones, with the built-in cameras, and take actions to guarantee the competitiveness of your firm? 1998 was the historical peak in amateur analog camera sales worldwide. And this market all but virtually ended by 2008. And it is impossible to predict how long the digital camera market will still survive the cameras built into smartphones. New development have in virtually every area of knowledge and no matter what business you are in, it is almost certain that your business model will change in the future. The effect of strategic planning is that traditional strategy design models needed to incorporate external environmental monitoring systems as an integral part of the planning process. In some cases, the best way out will be to exit the market. Implications for sales, in the contact with the real world, sales have the important role of identifying market trends and report their findings to the headquarters. Sales need to be part of the effort to monitor the elements that can affect the industry and alert management to important developments. In addition, it is important to keep an open mind. The only constant in life is change and it will come to you and your firm. Keeping a monetary effort in the market and its elements is important to allow the company sufficient time to perceive the change, understand its implications, and developer response. This is the topic of our next video. Before you go, do you know which of the most important technological developments are and how they will affect your business in the future? Thank you for watching. We will see you in our next video. [MUSIC]