4. External Environment & Industry Flashcards
Why is the PESTEL analysis useful?
The PESTEL framework is used to analyze the broad macro-economic environment of organizations in terms of political, economic, social, technological, environmental and legal factors.
For what is the Porter´s 5 forces good for?
The Porter´s 5 forces framework helps to identify the sources of competition.
What are competitive rivals?
Competitive rivals are organizations in the same industry/market with similar products/services aimed at the same customer group.
What are the 5 Forces according to Porter´s5 forces framework?
- Bargaining power of the buyers
- Bargaining power of the suppliers
- Threat of new entrants
- Threat of subsitutes
- Competitive rivalry in the industry
What are critical success factors (CSFs)?
Critical success factors are product features that are particularly valued by a group of customers and, therefore, where the organization must excel to outperform competition. It provides a significant advantage in terms of cost.
Why are value curves useful?
Value curves can be used to provide an overview of factors in a prioritized order to compare onesefl to competitors and focus on key drivers.
Give some examples of critical success factors:
-Reputation
-After-sale service
-Price
-Quality
-Updates
What is a competitor analysis? Provide 3 examples:
-Competitor profiling
-Market share analysis
-Strategic groups
What are strategic groups?
Strategic groups are organizations within an industry with similar strategic characteristics, following similar strategies or competing on similar bases.
What is a market analysis?Provide some examples:
Market analysis is concerned about determining target markets and profile customers. Common methods include:
-Market lifecycle
-Market segmentation
-Market research
-Strategic customers
What is market segmentation?
A market segment is a group of customers with similar needs that are different from customer needs in other parts of the market.
What is a strategic customer?
A strategic customer is the person/organization at whom the strategy is primarily addressed because they have the most influence over which goods/services are purchased.
