Environmental and Industry Analysis Prepared by Farida Komalasari

Environmental and Industry Analysis Prepared by: Farida Komalasari Eko Ganiarto

Main Topics: Environmental Analysis Industry Analysis

Environmental Analysis What is? assessment of external uncontrollable variables that may impact the business (plan) Objective: to identify trends and changes occurring on a national and international level that may impact the venture

Environmental factors are: 1. Economy: GDP, GNP, unemployment, disposable income, etc. 2. Culture/social: trends in demographics, safety, health, nutrition, etc. 3. Technology: Now and potential technological developments 4. Legal concerns: Any legislation that may affect the operation hours/day, product, wage/salary, channel of distribution, price, promotion strategy, etc.

Industry Analysis: What is? review of industry trends and competitive strategies Objective: to know company position and some pieces of information in specific industry to the preparation of company’s strategies

Industrial factors are: 1. Industry demand: market growing and declining, number of new competitor, possible changes in consumer needs need marketing research 2. Competition: potential threats from larger corporations, their strengths and weaknesses

Industry Analysis - SWOT and Porter’s The content of an industry analysis depends on the purpose of the report. There is no one size fits all. However, if the business is seeking funds, investors will at a minimum want to see two things: 1. Industry analysis: An analysis of the industry in which the company operates. What are the opportunities and threats inherent in the industry? 2. Company analysis: An analysis of the competitive position of the company within that industry. What are the strengths and weaknesses of the company?

SWOT ANALYSIS

SWOT Analysis – Iphone App

Porter’s Five Models – Iphone App

Critical Issues for Environmental and Industry Analysis: (1) 1. What are the major economic, technological, legal, and political trends on a national and an international level? 2. What are total industry sales over the past (five) years? 3. What is anticipated growth in this industry? 4. How many new firms have entered this industry in the past (three) years? 5. What new products have been recently introduced in this industry? 6. Who are the nearest competitors?

Critical Issues for Environmental and Industry Analysis: (2) 7. How will your business operation be better than this? 8. Are the sales of each of your major competitors growing, declining, or steady? 9. What are the strengths and weaknesses of each of your competitors? 10. What trends are occurring in your specific market area? 11. What is the profile of your customers? 12. How does your customer profile differ from that of your competition?

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