7/18/2019 Strategic Analysis

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Strategic Analysis – Process of Conducting Research on the business

environment within which an organization operates & on the

organization itself, in order to formulate strategy

MACRO PESTEL / PEST ANALYSIS: Scan of external macro-environment in which an organization exists

POLITICAL

ECONOMIC

SOCIO – CULTURAL

TECHNICAL

ENVIRONMENTAL

LEGAL

Industry:

Porter’s five forces Model 

By Michael E. Porter (1979)

It served as a framework for assessing & evaluating the

competitive strength and position of the business

Applied to the business unit level

It implies attractiveness of an industry

It suggests a strategy that a firm should adopt

o  Five forces

  Supplier Power

  Buyer Power

 

Competitive rivalry

  Threat of a substitution

  Threat of new entry

RIVALRY

Threat ofSUbstitution

SupplyPower

Threat ofNEw Entry

BuyingPower