Business Analysis by Binam Ghimire. Learning Objectives. Internal and External Analysis; PESTLE Analysis - an examination of the Legal, Economic, Political, Environmental ; Social; Technological; Ethical factors and Competition.
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by Binam Ghimire
External Factors (PESTLE Analysis)
Again, consider the Oil Sector
Intensity of Rivalry
Bargaining power of Suppliers
power of Customers
Identifies drivers of competitive behaviour.
Indicates trends in profitability.
Highlights strategies to alter industry structure.
Can be used to compare attractiveness of different sectors.
Assumes all business relationships are competitive.
Industry convergence makes defining sectors difficult.
Five forces may not capture the whole picture of what drives an industry.
Is entry into the market compatible with our strategic objectives?
What relative (better) or absolute (unique) advantages do we bring to the market that satisfy customer needs better than competitors?
The GEC Matrix examines these issues
Market analysis for strategy purposes is not simply about customer segments, their needs and numbers as in marketing.
Strategists are concerned with broader criteria relating to*:
* These two issues overlap, i.e. the better able you are to compete, the more attractive the market
Basic market data
Basic competitor information
Corporate web sites
Obviously, the available sources are many and varied but key ones include: