UNDERSTANDING THE EXTERNAL ENVIRONMENT

2.1 UNDERSTANDING THE EXTERNAL
ENVIRONMENT

THE ROLE OF THE CPA IN ANALYSIS

EXTERNAL ENVIRONMENT ANALYSIS — ANALYSING
AN INDUSTRY

Gathering Data for Industry External Environment Analysis

2.2 DEFINING THE INDUSTRY FOR ANALYSIS

THE INDUSTRY VALUE CHAIN

INDUSTRY SEGMENTATION

THE INDUSTRY LIFE CYCLE

Start-Up

Growth

Maturity

Shake-Out

Decline or Renewal

Disrupting the Industry Life Cycle

2.3 REMOTE ENVIRONMENT ANALYSIS — GROWTH

FUTURE EXPECTATIONS

REMOTE ENVIRONMENT ANALYSIS PROCESS

Factors Influencing Growth

Social Factors

Technological Factors

Economic Factors

Environmental Factors

Political Factors

Legal Factors

Ethical Factors

Summarising the Remote Environment Analysis

2.4 INDUSTRY ENVIRONMENT ANALYSIS —
INDUSTRY PROFITABILITY

PORTER’S FIVE FORCES

Threat of New Entrants to the Industry

POWER OF SUPPLIERS TO THE INDUSTRY

Power of Buyers

Power of Substitutes

Indirect Substitutes

Power of Complements

Intensity of Industry Rivalry

Drawing Conclusions About Industry Profitability

2.5 UNDERSTANDING CUSTOMERS AND MARKETS

WHAT IS A MARKET?

Market Segmentation

Market Segment Analysis

2.6 COMPETITION IN THE INDUSTRY

STRATEGIC COMPETITION

BASIS OF COMPETITION

INDUSTRY KEY SUCCESS FACTORS

COMPETITIVE POSITION

Identifying and Assessing Competitors

IDENTIFYING STRATEGIC GROUPS

2.7 FURTHER IMPLICATIONS FOR LEADERSHIP
AND MANAGEMENT

FRAMING THE EXTERNAL ANALYSIS

ESTABLISHING A DATA MANAGEMENT APPROACH

RESPONDING TO CHANGE

REVISITING THE ROLE OF THE CPA

FROM EXTERNAL TO INTERNAL ANALYSIS