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