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External analysis Micro environment, image, image - Coggle Diagram
External analysis
Micro environment
1. External analysis
Purpose:
to respond effectivelyy to changes in environments
decrease the likelihood of major surpries
shorten the reaction time to emerging events
Identify opportunities & threats
Analysing micro-environment
Focuses:
Industry, markets, competitors
Roles:
Needs and opportunities for competence building and leveraging
The potential for collaboration with suppliers,
distributors, customers and competitors
Critical success factors in industry & markets
2. Industry analysis
Roles
:
Supply side of the economic system
understand the nature of competition and the competitive position of the organisation
Porter’s 5 forces framework
The bargaining power of buyers
The threat of substitutes
Bargaining power of suppliers
The intensity of rivalty among competitors
Threat of potential entrants
3. Industry dynamics
radar plot
industry life cycle
Shake-out: Slower growth, some exist => Managerial & financial strength key
Maturity: Low growth, standard products, higher entry barriers => Market share & cost key
Growth: High growth, weak buyers, low entry barriers => Growth ability key
Decline: Typically many exits & price compentition => Cost & commitment key
Development: High differentiation => innovation key
4. Competitors and markets
Strategic groups:
similar competencies, same demands in the same market segment, similar quality of products/services
Strategic group analysis:
analyse the competitive structure and position of the key competitors
Critical success factors (CSFs)
: reputation of the brand, service excellence, product range/features, distribution and innovation
