UNIT 3: EXTERNAL AND INTERNAL ANALYSIS

Question 1

WHAT IS A REFERENCE MARKET?

Answer 1

Is determined by a need that is satisfied.
We distinguish (megkülönböztetni):
- strategic segments
- substitute products
- product market
A company CANNOT focus on the whole reference market because the customer needs are depending on a lot of factors.

Question 2

WHAT IS A RELEVANT MARKET?

Answer 2

Part of the reference market where the company really acts.

Question 3

WHAT IS THE PESTEL ANALYSIS?

Answer 3

Tool to identify the macro forces facing the organization.
Political, Economical, Social, Technical, Environmental, Legal

Question 4

WHAT IS PORTER’S 5 FORCES ANALYSIS?

Answer 4

Refers to a framework that examines the level of competition within an industry.
- Power of suppliers
- Power of customers
- Threat of substitute products
- Threat of new entrants
- Existing rivals

Question 5

WHAT IS THE ERRC GRID? EXPLAIN THE POINTS!

Answer 5

Eliminate-Reduce-Raise-Creat grid is an essential tool of blue ocean strategy. This will help you to develop concrete and actionable blue ocean strategic options.
ELIMINATE: which factors that the industry has should be eliminated?
REDUCE: Which factors should be reduced well-below the industry’s standards?
RAISE: Which factors should be raised well above the industry’s standards?
CREATE: Which factors should be created that the industry has never offered?

Question 6

WHO ARE THE CURRENT CUSTOMERS?

Answer 6

People, Companies, Organizations that purchase in the industry periodically or have done it recently.

Question 7

HOW ARE THE POTENTIAL CUSTOMERS?

Answer 7

People, Companies, Organizations that do not purchase in the industry BUT could be seen as future customers because they have the need.

Question 8

WHAT ARE THE THREE TIERS OF NONCUSTOMERS? (4 points)

Answer 8

1. My current customers
2. “Soon-to-be” customers
3. “Refusing” (against our market)
4. “Unexplored”

Question 9

WHAT ARE THE RESOURCES?

Answer 9

Refer to what factors an organization owns (good at it)

You have tangible: physical and financial
And intangible: non-human and human

Question 10

WHAT ARE THE CAPABILITIES?

Answer 10

Refer to what the organization is able to do to develop an activity from coordination and combination of the resources

Financial indicators: market share, turnover, profitability
Marketing indicators: brand loyalty, product quality, innovation