External Analysis

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In this article we describe the External Analysis, which provides insight into the opportunities and threats within a business environment.

In this article you can expect:

What is the External Analysis?

External Analysis is the analysis of the external environment and provides insight into the opportunities and threats within a business environment. This forms the input for a SWOT Analysis on which the ultimate strategy of a business is based. Together with the Internal Analysis, it forms the Situational Analysis.

Why an External Analysis?

By choosing characteristics out of the business environment as basis for a long term strategy, a company is enabled to reach a good balance between supply and demand. Thereby, a company can well respond to the client’s wants and needs.

How do I conduct an External Analysis?

The CICD Analysis and DESTEP offer a good structure to map out all important facets of the external business environment.Click on the link for more information.

MESO environment --> CICD Analysis (Customers Analysis, Industry Analysis, Competitors Analysis, Distribution Analysis)

MACRO environment --> DESTEP Analysis.

About the author

Edwin Muilwijk

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