Elements of Environmental Analysis:

The areas to be analysed to determine the external environment


Together with stakeholder analysis the basis of SWOT


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


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