Please enable JavaScript.
Coggle requires JavaScript to display documents.
Gathering and Analyzing Internal/External Information (2. Analyzing the…
Gathering and Analyzing Internal/External Information
1. Analyzing the External Environment
Include:
macro environment
to identify conditions that may affect the future of the industry and the organization;
the industry
(its major actors, characteristics, dynamics, opportunities and requirements)
PESTEL analysis
identify current and emerging conditions in six categories that may affect the decision
Political factor:
an economy’s political, governmental, or institutional environment
Economic conditions:
GDP, employment level, family incomes, inflation, etc
Sociocultural forces:
age, gender distribution, geographical distribution, etc
Technological factors:
emerging and speculative technology, etc
Environmental forces:
natural event and trend, etc
Legal and regulatory factors
Five force framework
understand the ways in which industry participants interact
Rivalry among competitive sellers
Potential new entrant to the market
Substitute products from other industries
Bargaining power of suppliers and buyers/ customers
Industry attractiveness:
include profitability potential, cumulative competitive pressure, etc
To use the frame, one must:
Identify the key figures and the major sources of competitive pressure in each area;
Evaluate the intensity of the pressures;
Determine how the overall picture supports profitability
Other industry information: competitive analysis
2. Analyzing the internal environment
Resource and capability analysis
identify all of an organization’s resources and capabilities and then determines if they offer sustainable competitive advantage
identifying resources
(tangible and intangible resources)
identifying capabilities
VRIN Test
test for sustainable competitive advantage
Valuable
Rare
Inimitable
Non-substitutable
SWOT analysis
assess an organization’s ability to implement a strategy and defend itself against competition.
Strengths:
include an organization’s core process and its core competencies
Core process:
the unique capability that is central to a company’s competitive strategy
Core competencies:
bundles of skills and knowledge sets that enable a firm to provide the greatest level of value to its customers
Weaknesses
Opportunities
Threats
Value chain analysis
understand where costs occur within an organization or a supply chain and how one activity within the chain can affect the cost of another
Value chain:
consists of primary activities and support activities
Trading partners:
any organization external to the firm that plays an integral role within the supply chain community and whose business fortune depends on the success of the supply chain community. (like: suppliers, distributors, dealers, retailers, etc)
Product life cycle analysis
Introduction phase:
make-to-order, engineer-to-order
Growth phase:
assemble-to-order, make-to-stock
Maturity phase
Functional product:
a low profit margin and a predictable demand
Decline phase
Rollover strategy from an existing to a replacement product includes: a solo-product roll and a dual-product roll
