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The key elements of external analysis are rivalry, substitute, threats, and opportunity. Rivalry takes into account competition or competitive factors within the market, substitute analyzes other related businesses or products similar to yours, and opportunity seeks ways to make current opportunities greater. External analysis is a key component to a strategic plan because each of these factors affect the businesses ability to plan for the future and build their brand. Any business needs to know who their competition is and how they operate, what products are on the market that are similar to theirs, and seek new opportunities to make their business better. Answer preview:Key Elements of the External AnalysisThe key elements of to look at when looking at the external analysis of the firm include rivalry, substitutes, threats, and opportunities.  The rivalry between firms refers to the pressure that companies that compete in an industry put against each other as they compete for the few customers and the rivalry leads to a reduction on the profit potential of each firm.  The rivalry is often driven by the objective of gaining more market share and increasing profitability (López-Gamero & Molina-Azorín, 2016). It affects the competitive environment where the firm operates.Substitutes are the  services or products which may be used instead of your products. When there are more substitute goods in the market, customers are more likely to switch to the substitute products when the prices of the products go up. Words:380