The document discusses tools for conducting external analysis, including PESTEL, Porter's Five Forces framework, industry life cycles, and strategic group, market, and segment analysis. PESTEL involves analyzing political, economic, social, technological, environmental, and legal factors in the macro-environment. Porter's Five Forces examines competitive rivalry, potential new entrants, substitutes, suppliers, and buyers. Industry analysis also considers life cycles and competitive dynamics. Competitor profiling involves strategic groups and evaluating market segments. External analysis breaks down the external environment to understand industry trends and competitive forces.
6. Micro-environment – this is the operating environment or industry sector in which the firm competes. It addresses a range of issues such as suppliers, customers, competitive intensity, threat of new entry and of substitute products arising (i.e. the ‘five-forces’ analysis).
7. Competitor analysis – seeks to understand the rival offers from other firms seeking to serve the same customers and to out manoeuvre their managers with our innovation and competitive moves.
Understand the role of external analysis in enabling managers to develop meaningful value proposition’s for customers and credible competitive positions;
Strategic management includes understanding the strategic position of an organisation, strategic choices for the future and managing strategy in action (Johnson et al., 2008: 12).”Strategic position is concerned with identifying the impact on strategy of:External environmentStrategic resources (resources and competences)Expectation and influence of stakeholders