Elements of Environmental Analysis:
The areas to be analysed to determine the external environment
Principle:
Together with stakeholder analysis the basis of SWOT
Issues:
Industry structure mapping
Attractiveness of industry (5 forces)
Segmentation analysis
Strategic groups and blocks
Main competitor analysis (KSF comparison)
Market analysis (Size, Lifecycle analysis, growth, market shares, market development, buyer behaviour – changing needs – price – elasticity of demand)
SO WHAT – is this good or bad for the company
- Historical analysis
- Comparison to industry average
- Comparison to direct competitors
Applications:
To assess the nature of the environment – if appropriate and relevant information is available
Source of Environmental Analysis:
Grant (2016)
Related Models & Sources:
Experience curve, Lifecycle, Portfolio