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