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External analysis: Micro focus - industry and sector analysis - Coggle…
External analysis: Micro focus - industry and sector analysis
EXTERNAL ANALYSIS: MICRO-ENVIRONMENT
Why external analysis:
To respond effectively to changes in their environments, organizations mustunderstand the external and internal contexts
Organizations do not exist in isolation but do depend on its largerenvironment
Objective
identify opportunities and threats
decrease the likelihood of major surprises and shorten the reaction time toemerging events
Analysing micro- environment
Focuses
Industry, markets, and competitors
Roles
Critical success factors in industry and markets
Needs and opportunities for competence building and leveraging
The potential for collaboration with suppliers, distributors, customersand
INDUSTRY DYNAMICS: INDUSTRY LIFE-CYCLE & COMPARATIVE INDUSTRY STRUCTURE ANALYSIS (RADAR PLOT)
COMPETITORS AND MARKETS
INDUSTRY STRUCTURE ANALYSIS: PORTER’S 5- FORCES
Industry analysis
Supply side of the economic system example in tourism and hospitality industry
Aim to understand the nature of competition and the competitive positionof the organisation
Porter’s five forces model
Force 1. Threat of potential entrants
Force 2. Bargaining power of suppliers
Force 3. The bargaining power of buyers
Force 4. The threat of substitutes
Force 5. The intensity of rivalty among competitors