This chapter gives an overview of external analysis, which is usually regarded as the first critical stage in strategic management. Given the assumption that a firm is not a separate entity from its surrounding context, the objective of external analysis is to identify external forces that can positively and negatively influence a firm’s strategy. The external environment can be classified into five dimensions: sociocultural, technological, economical, ecological, and political-legal factors. These are the critical aspects of external factors that business leaders and strategic planners should monitor. Some critical trends that contribute to the growth of technology companies will also be presented at the end of the chapter. Technology entrepreneurs and leaders need to continuously follow up on these streams of change to exploit opportunities amid uncertainties.