Why conduct External Environmental Analysis?
- Supports the development of Core Strategy and Objectives
- Supports the development of Competitive Positioning: Where to compete, How to compete
Supports the development of Core Strategy and Objectives (Why conduct External Environmental Analysis?)
Identify Key Success Factors (KSFs): Understand relative performance of existing competitors
Identify current and predict future Threats & Opportunities, Macro and Micro factors, Identify likely future competitors
Supports the development of Competitive Positioning: where and how to compete (Why conduct External Environmental Analysis?)
Understand:
- evolving customer needs & wants
- relative attractiveness of Segments
- relative Positioning of competitors
Levels of External Environmental Analysis
- Macro: PESTLE, Megatrends
- Micro: 5 Forces, Strategic Group, Product Life cycle, competitior analysis, customer analysis
- Organisation
Macro: Megatrends
global shifts reshaping the world we live in
Macro: PESTEL
Political, economic, social, technology, legal and environmental
The what and the so what (why do the company care)
Porters 5 forces
- Competitive Rivalry
- Supplier Power
- Buyer Power
- Threat of Substitution
- Threat of New Entry
Product Lifecycle stages
- Introduction
- Growth
- Maturity
- Decline
Look at model for more info before exam
Competitor Analysis
- Define the competitive arena for the generic, specific and variant product markets
- Define key competitors
- Analyse & predict competitors’ future strategies
PLEASE RELOOK at lecture 4 before exam important
PLEASE RELOOK at lecture 4 before exam important
Defining your current competitors (circle)
Primary - Who/what consumers would mainly use if not our proposition?
Secondary - Other propositions/services/products that consumers would consider using
Substitutes - Viable substitutes to using our core proposition
