IntroductionThe purpose of this paper is to perform an analysis of the external environment of the cable industry. The first sections of the document will discuss environmental scanning and define the telecommunications niche currently occupied by cable operators like Comcast. The next section will identify macroeconomic variables currently impacting cable operators and compare two variables with two corresponding industry variables. The final section of the paper will identify some of the challenges and opportunities facing the sector. An external analysis of the industry will provide a clear picture of the environment, as well as any opportunities and threats faced by Comcast. By understanding the environment, opportunities, and threats, a company has the ability to create strategies to support its business objectives. The primary process through which Comcast will gain an understanding of its external environment is environmental scanning. Environmental scanning Environmental scanning "is the acquisition and use of information about events, trends and relationships in an organization's external environment, knowledge of which would help management plan the organization's future course of action." Choo (2001) As explained by Gazzale (2007) the external environment of all businesses consists of three aspects": 1) the remote environment (macroeconomic factors including inflation, GDP, interest rates, etc.), 2 ) the industry environment (barriers to entry, level of competition within the industry, etc.) and 3) the operating environment (customers, suppliers and the company's workforce, etc.). Telecommunications Industry (Cable) Comcast Cable is part of the telecommunications industry which is defi...... half of article ...... mental scanning as information seeking and organizational learning, Information Research, 7(1) , retrieved January 18, 2007, from http://InformationR.net/ir/7. -1/paper112.htmlCountrywatch (2007), retrieved January 19, 2007 from University of Phoenix rEsource database Countrywatch, United States Gazzale, L (2007), retrieved January 22, 2007 from University of Phoenix, Main MBA501 scan thread fifth week environmental McConnell, R., Brue, S. (2004). Economics: principles, problems and policies, 16e. The McGraw-Hill CompaniesNAICS (2007) definitions, retrieved January 18, 2007 from (http://www.census.gov/epcd/naics02/def/ND517510.HTM)US Census Bureau (2006), retrieved January 22, 2007 from http://www.census.gov/University of Phoenix, (2007), retrieved January 19, 2007 from the University of Phoenix MarketLine Business Information Center resources database